More than half of Filipinos surveyed by Manulife have experienced a reduction in their monthly income due to the economic impact of the coronavirus disease 2019 (COVID-19) pandemic.
According to Manulife’s third Asia Care Survey, COVID-19 has hit Filipinos’ personal finances hard, with 55 percent of those surveyed saying their monthly income has reduced, and with nearly one in five saying they lost their jobs during the pandemic.
“This has resulted in a drop in savings, with 79 percent of respondents saying their savings would only last for a year or less. But they have sought to act on these declines by taking more control of their finances — and their expenses,” Manulife Philippines said in a statement.
To mitigate further financial risk, 29 percent of those surveyed said they had cut back on unnecessary or big-ticket expenses, while 20 percent opted to invest.
Also, 25 percent of them said they had started their own business in addition to their full-time or part-time job to make up for lost income.
“The pandemic has impacted Filipinos’ view of financial security, sharpening their focus on how to alleviate their situation, cutting back on expenditure, and looking for longer-term solutions that protect themselves and their families,” Melissa Henson, chief marketing officer for Manulife Philippines, said.
Manulife said despite the country’s low overall insurance penetration of 2.3 percent, 91 percent of Filipinos surveyed recognize the importance of insurance, higher than any other market in the region and well above the regional average at 69 percent.
“In addition, 88 percent say that retirement planning is important because of COVID-19, the highest in the region,” Manulife said.
In terms of their intention to buy new and additional insurance, the survey showed that 86 percent of Filipinos plan to buy insurance in the next 12 months.
Manulife said the types of insurance products that are of particular interest are hospitalization, health and life.
The Manulife Asia Care Survey was conducted in November 2021 via online self-completed questionnaires in eight markets: mainland China, Hong Kong, Indonesia, Japan, Malaysia, Philippines, Singapore and Vietnam. A total of 8,276 people participated, aged 25 to 60 years old, with 1,043 people from the Philippines.
Respondents included insurance owners and non-insurance owners who intend to purchase.
“The realities of the past two years living with the pandemic have given many Filipinos a clearer lens on the importance of physical, mental and financial well-being. Their attitudes, behaviors, and priorities have profoundly shifted, while pandemic-linked fears and concerns continue to impact everyday life,” Richard Bates, president and chief executive officer for Manulife Philippines, said.
“At the same time, it’s heartening to see Filipinos adapting to COVID-19 the best they can, which drives us to continue to work towards meaningfully meeting the health and protection needs of Filipino families during these times,” he added.
