LIFE INSURANCE AS A SECTOR THAT CONTRIBUTES SIGNIFICANTLY TO THE PHILIPPINES’ ECONOMIC DEVELOPMENT
That the life insurance industry plays a vital role in the socio-economic development of the country is undebatable. Then Congressman Herminio Teves, now Department of Finance Secretary in a speech before the PLIA body said, “The life insurance industry provides financial security to our people. It also plays a larger role of mobilizing Long-term savings…. has contributed annually to the coffers of the government in terms of income taxes, premium taxes and documentary stamp taxes”. This does not include the income taxes generated from the licensed agents and the salaried employees.
The Philippine life insurance industry remains to be one of the very few industries which mobilize the long-term savings of the populace. These savings are invested primarily in long-term investment instruments, and have helped put up infrastructures like roads and bridges in support of economic development.