Corporate Social Responsibilities

Contribution to Economy

Life insurance works as a mechanism for forced savings. A significant part of the premiums that the industry collects from the policyholders is plowed back to the national economy through various forms of investment. Some of the industry’s funds also go into financing private and government projects through participation in loan syndications.

Total life insurance industry investments in 2010 reached P364.046 billion, which increased by 11% from the previous year’s P327.47 billion.

The life insurance industry also contributes significantly to the national treasury in the form of taxes paid. In 2010 the industry’s tax payments amounted to Php10.01 billion.

Giving Back to the Community

The life insurance industry has been actively undertaking corporate social responsibility (CSR) programs as a form of sharing with the community part of its blessings and asserting its role as a responsible corporate citizen.

In 2010 just from fifteen life insurance companies alone, a total of P45 million was spent for CSR activities. In 2011, a similar number of companies have earmarked P86 million to be used for CSR programs. These companies which are active in CSR activities do not necessarily belong to the bigger ones, but cut across the industry membership.

In addition to involvement of companies in their respective programs, the Philippine Life Insurance Association, Inc.(PLIA), the umbrella organization of the 33 life insurance companies operating to date in the country, is likewise active in CSR initiatives on an association level. The following are some of PLIA’s undertakings in this regard:

  1. Partnership with Gawad Kalinga in building the Philippine Life Insurance Village, consisting of 35 houses, donated for use by Ati settlers in Sitio Maislap, Barangay San Isidro, Rodriguez, Rizal. PLIA contributed P1,750,000 for this project.

    In 2011 PLIA has allotted P483,000 for this village in order to help partly address its perennial flooding problem. This fund will enable the initial rehabilitation of 10 of the 21 total affected houses in the village through raising their floor elevation as a quick fix to make the units habitable even during occurrence of flood. The other part of the overall solution to the flooding is the construction of a complete drainage system in the entire village.

    On a yearly basis, PLIA allocates the proceeds of its Golf Tournament held every October to projects that can promote the development of its GK community.

  2. Donations to regular beneficiaries like the:
    1. PGH Cancer Ward for Children to which proceeds from the PLIA Walk for a Cause, done every October, is allocated. Donation in 2010 amounted to P157,446.10. Proceeds in 2011 reached P142,302.50
    2. Don Bosco Tuloy Foundation, Inc., for which proceeds from the PLIA Dance for a Cause, also done every October, is earmarked. Donation in 2010 came to P81,218.70. The 2011 Dance for a Cause, which have this foundation again as beneficiary, generated P78,774.75
  3. PLIA, through the Insurance Commission, donated P150,000 worth of medicines to the Medical & Dental Mission of the Camarines Norte High School Alumni that was undertaken on April 20-21, 2011 at Vinzons, Camarines Norte. Over 2,000 people benefited from the services of this mission.
  4. A commitment of P200,000 was pledged by PLIA as college scholarship fund for two children from Sual, Pangasinan. One of the children started college in 2011 and has availed in July 2011 the first semestral fund allocation of P12,500 that was used for tuition payment and purchase of books. The second allocation of P12,500 was released in January 2012.
  5. PLIA also undertakes an industry blood letting activity as part of the yearly commemoration of the Life Insurance Consciousness Week held every first week of October. Having been a corporate blood donor for the last four consecutive years, PLIA was awarded by the Philippine National red Cross with a “Scroll of Honor” certificate during its Blood Donors Month recognition event on 29 July 2011

PLIA has adopted a policy that part of its savings from the annual operating budget gets committed to a worthy cause.

PLIA, by serving as catalyst in promoting the growth of the industry, endeavors to improve the level of its contribution to national development and, in its small way, toward efforts to lift the living condition of the less privileged sectors of society.