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STRATEGIC MANAGEMENT PLAN:

BPI/MS INSURANCE CORPORATION

A Strategic Management Paper

Presented to the Faculty of the
GRADUATE SCHOOL OF BUSINESS-
COLEGIO DE SAN JUAN DE LETRAN
Intramuros, Manila

In Partial Fulfillment of
the requirements for the Degree of
Master of Business Administration

ROQUE ALEJANDRO MERCADO

SEPTEMBER 2019

CHAPTER1. INTRODUCTION
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A. Company History

BPI/MS is a joint venture of the Bank of the Philippine Islands (BPI) one of the

country’s most trusted banks, and Mitsui Sumitomo Insurance Company (MSIC) one of the

largest non-life insurance companies in Japan and in Asia, (https://www.bpims.com 2019).

Bank of the Philippine Islands (BPI - established August 1 1851 formerly as El Banco

Español Filipino de Isabel II), the country's pioneering banking institutions and proud

member of the Ayala Group of Companies

Mitsui Sumitomo Insurance Company (MSIC formed in October 2001) through the

merger of Mitsui Marine & Fire Insurance Co., Ltd. and Sumitomo Marine & Fire

Insurance Co., Ltd. both were premier non-life insurance providers in Japan,

boasting great histories, having been established in 1918 and 1893 respectively.

(https://www.msig-asia.com).

On November 05 2001, BPI/MS entered the Philippine Non-Life Insurance industry,

ushering in the new era, to be prime mover of consumer-driven insurance services in

the country.

The mutual capability of BPI and Mitsui Sumitomo aimed to improve services,

processes and strengthen market focus, while preserving a loyal client base it has earned

from their predecessors, FGU and FEB Mitsui. BPI MS pride itself for the distinction of

having the stability, integrity and social concern. (www.bpims.com)

B. Ownership

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BPI/MS Insurance Corporation primary ownership is by the Bank of the Philippine

Islands with a stake of 51%, in a joint strategic venture with Mitsui Sumitomo Insurance Co

with the stake of 49%. (www.bpims.com)

C. Management

GOVERNANCE STRUCTURE

A. Board of Directors

The Board has the primary duty for creating and enhancing the long term

shareholder value of BPI/MS. BPI/MS’s long term success and viability, as a

business entity, its ability to satisfy the needs of its customers, sustain its leadership

and competitiveness, and upholding its reputation, is the responsibility of the board.

The board’s mandate consists of developing strategic business directions of

the company, including the following:

1. Appointing its senior executive officers.

2. Confirming its organizational structure.

3. Approving all key strategies and policies,

4. Overseeing all major risk taking activities.

5. Monitoring the financial results.

6. Measuring and rewarding the performance of management.

7. Generating a reasonable investment return to shareholders.

8. It shall conduct an autonomous review on management.

B. Composition

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The Board of Directors shall have ten (10) members who shall be elected by

the BPI/MS stockholders entitled to vote at the annual meeting, and shall hold

office for one (1) year and until their successors are in place in accordance with

the By-Laws of the corporation.

As a corporation supervised by Insurance Commission (IC), BPI/MS shall

conform to the legal requirement to have at least two (2) independent directors.

The independent directors shall be stated in the annual report.

C. Qualification of Directors

A director of BPI/MS shall have the following qualifications: (BPI/MS

CORPORATE GOVERNANCE MANUAL - Page 4 of 28. VERSION: 5(2019)

1. Ownership of at least one (1) share of the capital stock of BPI/MS;

2. At least twenty-five (25) years of age;

3. Possesses sufficient skills, competence and experience in areas of

management, and capabilities preferably in the turf of insurance or

insurance-related disciplines.

4. Possesses integrity, probity and shall be diligent and assiduous in the

performance of his functions.

5. Adequate physical health and mental stamina to withstand the rigors of

his responsibilities;

6. No potential conflict of time and attention due to competing officer-ships

directorships, memberships’ position in other corporations;

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7. Attendance of an accredited corporate governance seminar, as required

by the IC;

8. No disqualifications as provided for in the Corporation Code and IC

Circulars.

Table 1.1 Members of the Board of Directors – 2018

THE EXECUTIVE BOARD

Board of Directors
MEMBER DESIGNATION NATIONALITY
Cezar P Consing Chairman/Director Filipino
President/Chief Executive
Masayuki Takahashi Officer Japanese
Simon R. Paterno Treasurer/Director Filipino
Rodolfo M Basa Independent Director Filipino
Romeo I Bausa Independent Director Filipino
Xavier Loinaz Independent Director Filipino
Yuji Nakano Director Japanese
Hideyuki Tanaka Director Japanese
Aurelio Montinola Director Filipino
Alan J Wilson Director British

ORGANIZATIONAL STRUCTURE

Illustration 1.1A the Organizational Structure – Department Heads

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Illustration 1.1B the Organizational Structure – Board Committees

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The Board Committees as per organizational meetings, Related Party

Transaction Committee is an existing committee however no related matter for

committee approval was forwarded or endorsed.(– BPI MS 2018 Annual Asean

Governance Scorecard disclosure 2018)

D. Nature of Business/Products/Services

BPI MS Insurance Corporation offers a wide array of insurance solutions for

various non-life needs, ranging from properties to personal accident insurance. BPI
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MS however does not provide products for Pre-Need, Variable-Life Insurance and

Insurance-Investments.

Table 1.2 BPI MS Fire and Motor Insurance Products and Services

Table 1.3 BPI MS Casualty and Marine Insurance Products and Services Offered

Table 1.4 BPI MS Personal Accident and Surety Insurance Products and Services
Offered

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Table 1.5 BPI MS Engineering Insurance Products and Services Offered

E. Current Revenue, Size and Profit (Competitive)

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BPI MS currently maintains its head office at 11th, 14th and 16th Floors Ayala

Life-FGU Center 6811 Ayala Avenue, Makati City, with the following branches.

(www.bpims.com)

E.1 Engagement Offices – Processing Centers

Table 1.6 BPI MS Branch Network-Processing Offices

E.2 Workforce-Human Capital Strength

Table 1.7 BPI MS Workforce

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As of 2018 BPI/MS, five hundred eighty-four (584) or 97.33% of the 600+

employees completed the 5-day mandatory Career Development and Competency

Training day requirement of the company. Trainings provided are based on the key

performance enhancement goals, equipping each employee to perform competently.

BPI MS further signified its commitment towards employee safety and

security by continuously adopting key preparation measures such as follows:

1. Call-Tree Calamity communication network, in which each employee could be

communicated in times of distress, enabling the company to provide immediate

assistance and relate the employees needs to the proper response channel and

government agencies

2. Emergency Go-Bag comes with survival provisions good for 3 days.

3. Continuous training on Fire Safety, Vehicle Safety and Earthquake drill

E.3 Performance Highlights

BPI MS posted an industry leading Net Income of PHP 453.86 M for 2018.

(https://www.insurance.gov.ph)

Table 1.8 BPI MS 2014-2018 ANI figures

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Illustration 1.2 BPI MS Asset-Net worth-Incomes 2014-2018

F. Competitors

Based on the PIRA Fact book 2018-2019 the dominant players in the Non-

Life insurance industry today would include Malayan Insurance of the Yuchengco

Group in terms of its assets whilst Pioneer Insurance and Surety tops the Net worth

Category

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CHAPTER2. RESEARCH DESIGN AND METHODOLOGY

A. Methodology

The internal and external analysis of the non-life insurance sector were made

through the use of data sourced from official portals, news clips from trusted news

sources and industry experts, as well fact books as disclosed in PIRA and Insurance

Commission. This tools are utilized evaluate the firm’s current position and

identifies its potentials and possible future course of action.

B. Data and Information Sources

The Researcher utilized the following sources for data and information:

- BPI MS official website (https://bpims.com)

- Related articles, reports and reviews from Philippine Insurer’s and Re-Insurer

Association and other Industry Observers.

- Portals of government agencies and regulators etc

o Philippine Insurance Commission Portal

o Securities and Exchange Commission

o Department of Finance and Bangko Sentral ng Pilipinas

o Competitor’s official web portal

- Other information extracted for this purpose are obtained through interview and

inquiries from BPI Business Managers.

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C. Scope and Limitation

The Study focuses on the BPI MS Insurance Corp and competitors with

similar products and services in the Philippine Non-Life Insurance Industry with

comparative data available from 2014 to 2018 as reflected in their respective

corporate governance disclosures.

D. Major Assumptions:

1. Competitors are considered based on the assumption that they provide similar

portfolio of products and services of the firm.

2. The comparative data used was from 2014 to 2017, based in the 2018

corporate governance disclosure form the firms.

3. The vision and mission statement stated in the company’s website portal is

assumed to be the vision and mission statement.

4. The unavailability of the CORPORATE VALUES statement in the company’s

website is assumed as NO Corporate Values Behavior Statement.

CHAPTER3. COMPARING MISSION AND VISION

A. Current Mission and Vision Statement

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Vision/Mission Statement

BPI/MS vision and mission statement is disclosed at the company’s web

portal www.bpims.com

Corporate Values

No specific statement or definition of corporate values forming behavior are

indicated, these help would promote and enhance common corporate culture and

workforce focus.

B. Comments and Evaluation of the Mission and Vision Statement

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The Company Mission Statement was evaluated using the following Criteria.

(David, Fred 2019 – Strategic Management Concept and Cases)

Criteria Present Inclusive Statement

(Y/N)

Customers Y “people and businesses” “ society”

Products Y “Finest products and services””

Markets Y “around the world”

Concern Y “continuously improve our business”

for survival “meeting our stockholders’ expectations and

earning their trust”

Technology N No specific mention of technology

Philosophy Y “To provide products that are safe, efficient and

sustainable”

Self-concept Y “insurance and financial service”

Concern Y “realize customer satisfaction”

for public image

Concern Y “an environment for challenges, incentives and

professional growth”
for employees

No specific

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CHAPTER4. EXTERNAL ANALYSIS

The chapter aims to determine the different macro-environmental forces and its

influences on business direction and progression. The understanding of the current

issues and trends in these variables would enable the firm to strategize to mitigate

negative impact and help create positive impact.

I. GENERAL STATEMENT – PESTLE ANALYSIS

1. Political and Legal Forces

BPI MS being in the business of Trust and Assurance, taking pride in being a good

corporate citizen, constantly adapts and exercise itself in order to observe, comply and

promote the laws, regulations and best practices.

The Tax Reform for Acceleration and Inclusion Law

The law in summary aims the ff:

1. Create a progressive and rational tax system primarily for internal revenue

collections, this is to promote sustainable and inclusive economic growth

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2. Possibly provide an equitable relief to the majority tax payers to improve levels

of disposable income and increase economic activity, aimed for the

improvement of their families.

3. Ensure that government is able to provide for the needs of those under its

jurisdiction and care through the provision of better infrastructure, health,

education, jobs, and social protection for the people.

Relevance:

The aims of enhancing and rationalizing the Philippine Tax system, and the

promotion of sustainable and inclusive growth, would enable or facilitate the following:

1. Working individuals to have better take home pay, giving him the ability and/or

opportunity to set aside amounts to develop his personal portfolio (either it be

wealth-savings build up or self-assurance) or avail other products and services.

2. Business entities and startups would be able to utilize the simplified and more

efficient tax system, along with the governments process improvements would

mean ease in doing and in turn enable the firms to position their spending,

explore business opportunities and set protection scheme for these asset

allocations, which normally is in the form of insurance.

3. The TRAIN Law is an economic driver that would create an increase demand

for various products and services, such increase in economic activities would

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also increase demand for additional surety particularly in business asset

protection, real properties, vehicle and marine services.

Rationalizing the Taxes Imposed on Non-Life Insurance Policies

House Bill (HB) 3235 filed in the 16 th Congress is aimed to cut taxes imposed

on non-life insurance premiums to as low as 2% by exempting it from the 12% VAT and

the additional documentary stamp tax ranging from P10 to P100 per year,

(http://www.ntrc.gov.ph DOF - National Tax Research Center, House Bills 16th

Congress).

The Insurance Commission also pushed for the reduction of taxes levied on non-life

insurers under the previous administration to put the sector at par with its neighbors. The

regulator and non-life sector were proposing to reduce taxes imposed on non-life

insurance premiums to 8% from the current high of 27% (one of the highest in the

ASEAN), in a bid to increase asset coverage in the country. (Business World August 28,

2017 – Banking and Finance)

Relevance:

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Although the proposal is still under deliberation and further research on the

levy processing for the non-life insurance sector. Government regulators, industry

association and legislators are pushing for the reform, purposely for:

1. The Philippine non-life industry to be competitive come ASEAN economic

integration.

2. The greater affordability of the non-life insurance products particularly for

business start-ups and property acquisition.

3. Further posturing of micro-insurance and micro-surety products and services.

The Amended Insurance code of the Philippines and the role of the Insurance

The Revised Insurance Code of the Philippines (RA 10607) - This laws amends the

38-year-old Insurance Code under Presidential Decree No. 612.

The law enables the government Through the Insurance Commission as lead

implementer together with its allied regulatory agencies such as Securities and Exchange

Commission and Bangko Sentral ng Pilipinas, to strengthen and foster the growth of the

Philippine insurance industry and re-align Philippine law with global developments in

the insurance sector.

One of the requirement of Republic Act No. 10607, is that insurance companies are

required to increase their net minimum capital requirement to P900 million by the end of
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2019 (December 31, 2019) from the current P550 million, in which BPI MS is already

compliant.

Relevance:

The industry, with its compliance with the duly instated reforms in the

Bancassurance provisions/rules, and the efficient supervision and implementation of

the Insurance Commission will attract an increase in demand of such products due

to stability and improved public perception.

Supervised Entities (insurance companies, surety firm and the like) in the

Philippines would further develop its prudency, adopt globally accepted best-

business practices, manage and mitigate insurance business risks, and maintain to

be globally competitive amid dynamic developments in the insurance industry.

The increase in capital requirement is expected to ensure industry stability,

whilst firms that would not meet such requirements are expected to form strategic

partnerships and mergers with other allied or affiliate companies.

The Data Privacy Act

This law orders government and private agencies to adhere the principles of

Transparency, Legitimate Purpose and Proportionality in their processing of personal

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data, that obtained information would only be for relevant and specific usage, storage is

for the duration it is needed. Information safety and security is strictly observed and the

use of such information within the limits of the law, strictly observing people’s data

protection rights.

Relevance:

Business entities should commit to the law and have a sound data privacy and

protection policy as well as its physical system, thereby reflecting their respect to rights

of their clientele.

The safety and security of personal data should be strictly followed in any form or

method, whether for use on core business systems, research and marketing purposes.

Data disclosure, storage and retention, methods of access and amendments should be top

of mind. Particularly that the business operates on the principle of trust, confidence and

mutuality, any breach in the system and policy would reflect business incompetence and

negligence.

ASEAN Corporate Governance

This is the standard set of corporate governance principles that provide guidance on

how corporations should operate. among South East Asian Countries and its adoption of

international corporate governance best practices, leads to long-term sustainability and

resilience, and can be a competitive tool to attract foreign investments. (Securities and

Exchange Commission: ASEAN CORPORATE GOVERNANCE SCORECARD Country

Reports and Assessments 2011-2014)

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Relevance:

This is utilized by capital market regulators and stakeholders as a reference to

identify the current corporate governance standards across the region. Effective and

efficient corporate governance attracts investments and buyer-clients.

It is a useful diagnostic tool to guide improvement of corporate governance

standards, enhance business process synchronicity and corporate transparency.

BPI MS has adopted the ASEAN Governance Scorecard and made

improvements on its reporting and observance. In 2017 BPI MS incurred a penalty

for non-observance of three criteria (see clipping), since then BPI MS has worked on

to strictly observe and implement the scorecard.

Illustration 4.1 Excerpt from BPI MS Annual Corporate Governance Scorecard 2017

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2. Economic Factors

The Gross Domestic Product of the Philippines –Economic growth 2019

The Philippines is predicted to be among the Top 25 Economies in the world by

2030 along with our ASEAN neighbors Indonesia, Malaysia and Thailand as well as

Vietnam. (Ambisyon Natin 2040: NEDA, https://www.businessinsider.com/)

This would be realized should the country consistently pose not less than an average

of 6.5% economic growth. The country’s Gross Domestic Product (GDP) grew year-on-

year by 5.5 percent for 2nd quarter of 2019 lower than the 6% posted last year, Key areas

the posted growth are Trade, Service, Financial Intermediation, Real Estate, Renting &

Business Activities while key improvements in the Industry Sector particularly

manufacturing and production should be instituted.

Relevance:

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The country’s economic potential and fundamentals are promising however we

have not yet hit the 7.2 growth we had last July 2017 (PSA-Philippine Annual GDP

growth rate, https://tradingeconomics.com/philippines/gdp-growth-annual,)

Efficient government systems, ease of business and a stable-competitive

domestic production would ease external influences that may deter our growth. With

the country’s young population, improving business infrastructure and upcoming

ASEAN integration this would generate demands for goods, products, services and

business solutions.

Foreign Exchange Rates (USD/PHP Valuation) and Inflation Rate

The Philippine peso is expected to depreciate until end-2019, due to the country’s

ballooning trade deficit, decrease in overseas remittances and current government

expenditures which mostly utilizes imported raw materials.

The continuous decline of the Peso as reflected in its 13-year low of P54.28 per US

dollar last September 2018 is seen to continue the further slide to P58 per dollar level in

the 2019, prompting the government to put in prudent approach and diligence to mitigate

the negative effects and counter the speculations.

The Peso, has been one of the worst performing Asian currencies in recent years,

this is due to the immense pressure of import dependent production and high

consumption of foreign goods and services, continuous increase in capital goods

imports. (https://www.philstar.com/business/2018/09/18/1852570/philippine-peso-seen-

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closing-2019/ , September 18, 2019, https://www.capitaleconomics.com September

2019)

Relevance:

While the current exchange rate conditions create immense pressure to our

import sector, the domestic consumption is at steady high. The marine services,

freight, combined-cargo logistics businesses and distribution business would most

likely optimize their resources in order to soften their demand for dollars.

One way is to increase and maximize income opportunities, is by adopting a

pro-active risk mitigation measure, particularly by utilizing business assets and

transaction protection tools.

3. Socio-Cultural Forces

Buying, Spending and Working Behavior: Impact of the Millennial Generation

The Millennial Generation generally refers to individuals who became adults in

the advent of the 2000s. Those born between 1980 up to 1996 is the generally

accepted birth group, these generation also comprises 75 % of the current

workforces, characterized by technology dependence, high social media usage,

travel and touring frequency, outgoing lifestyle and utilization of online review and

social proof. (Gallup Panel Research 2015, https://www.gallup.com/workplace).

They are both influential and critical to any market both on the consumer side

and workforce side due to their number and technology dependence.

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Based on a Gallup Panel Research, Millennials are twice as likely – (27 %

vs. 11 %) to purchase an insurance policy online than are other generations, also

they review product queries and comments based on online research and conduct

benchmarking prior to purchase. While prior generation (Baby Boomers and

Generation X) of buyers are usually relationship-driven who usually approach agents

they already know or referred by family friends and rely on their recommendations

when buying insurance. (https://www.gallup.com/workplace/238073/millennials-

work-live.aspx)

Relevance:

With this trend, non-life insurance companies should be dynamic and analytic in the

way they interact with the millennial generation as customers, as well how to handle

Millenials as their workforce, due to their disengaged nature and technology

dependence.

This is the customer segment that the industry should focus on particularly in the

next decade by having a secure and dependable online platform, meaningful

branding and alternative sales channels.

Traffic Safety and Driving Ethics in the Philippines

The incidence of vehicular catastrophes in the Philippines, particularly in the

National Capital Region (NCR), is increasing at an alarming rate. Based on the

Metro Manila Accident Reporting and Analysis System (MMARAS) annual report

conducted by the MMDA-TEC-Road Safety Unit, from a total of 63,072 in 2007, it

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almost doubled to 110,025 in 2017, 434 of which resulted to deaths, 19,374 to non-

fatal injuries, and 94,097 to damage to properties.

The grim reality: A daily average of 301 vehicular accidents (approximately 12

per hour) happens in Metro Manila, while across the entire country, roughly 34 road

crashes are fatal. (https://business.inquirer.net/255709/need-know-road-safety-

philippines).

Relevance:

The issue of road safety is highly attributed to poor Driver Ethics and

aggressive-reckless driving, secondly to vehicle failure. The government in its part

has instituted reforms for driver education, traffic laws and regulations, as well road

safety consciousness efforts, measures to have stricter issuance of license to only

those qualified and safety-oriented drivers.

Businesses dealing and engaged in the Vehicle and Transport Industry are also

doing its fair share of Driver and Road Safety Education, however a more intense

and impactful campaign should be effected.

4. Technological Forces

The Immergence of Cyber Insurance / Information Technology and Data Insurance

Cyber insurance is an insurance product designed to help businesses hedge against

the potentially devastating effects of cybercrimes such as malware, ransom-ware,

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distributed denial-of-service (DDoS) attacks, or any other method used to compromise a

network and sensitive data. This insurance solution facility is also referred to as cyber

risk insurance or cyber security insurance, these products are personalized to help a

company mitigate specific risks. (https://www.cisco.com/c/en/us/solutions/security/cyber-

insurance/what-is-cyber-insurance.html). According to a report by Microsoft Philippines

last 2018, the potential cost of cyber threats would hit about $3.5 billion annually. (July

4, 2019 https://businessmirror.com.ph/2019/07/04/in-defense-of-data)

Relevance:

Today businesses and professionals rely on business systems and information

technology, thus there is a rise of cyber theft and cyber-attacks, thus a financial

solution that would provide for or cover such event particularly the actual damages,

reputational damages and loss incurred or done would be a necessity.

The 4th Industrial Revolution: Influencing the Financial and Insurance Industry

The technological advancements, the advent of the internet and digital age resulted

in the increase of human activity and productivity, resulting to a dramatic change in

business systems and approaches.

Financial and Insurance institutions use artificial intelligence to detect fraud and

research equities, uses machine learning to manage client relationships, develop pricing

models, predict buying behavior, create a detailed risk management strategy and

individualizing product specifications. (https://trailhead.salesforce.com)

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According to Consumer Barometer Survey conducted over the period 2014to 2015, (a

project study of Google and TNS Infratest), reveals that only 10% of the respondents

conducted their purchases purely online—that’s from research inquiry to actual purchase

or availment, and about a half (5 of 10) would research online but still make their purchase

offline (through traditional sales channels such as offices, brokers and agents)

Relevance:

The banking and insurance industry is at a fast phase of physical change, from

physical offices to virtual offices, alternative channels and access points are also in

development.

However it also give rise to individualization and customization of products and

services, while data from analyzing customer preferences and their social-

media/cyber purchasing behavior would be utilized, the role of the technology team

among insurance firms is to present in a clear and appropriate manner the features

and disclosures of the products whilst the consumer-service team to disclose risk

exposure and mitigation, benefits and provide a satisfactory after sales program.

5. Environmental Forces

Vulnerability to Climate Change and Natural Catastrophes

From 2006 to 2015, a total of 4,815 deaths due to natural disasters and extreme

events were recorded 75 percent due to meteorological disasters. Destructive

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tropical cyclones, a meteorological disaster subtype, claimed the most lives with a

total of 3,072 individuals. (https://psa.gov.ph/Compendium of Philippine

Environment Statistics 2016)

From 2006 to 2015, the total economic loss due to natural disasters was almost

PHP 133 billion. The largest economic loss recorded was in 2009 at a level of PHP

45 billion. In the same year, there were 14 meteorological disasters considered as

major disaster events, including Tropical Storm Ondoy and Typhoon Pepeng. The

least economic loss was recorded in 2014 at PHP 262.3 million.

(https://psa.gov.ph/Compendium of Philippine Environment Statistics 2016)

Relevance:

The Philippines being situated in the Pacific is susceptible to Typhoons, heavy

Monsoon rains and other meteorological disasters, the Non-Life Insurance industry

plays a critical role in securing and covering such losses as well as other acts-of-

nature.

While it possess as a liability in part of the insurer, prudent and reliable

companies are major players in creating economic activity and business recovery,

such loss are mitigated due to companies risk management and due diligence.

Urbanization and Metropolization of Rural Areas

In 2010, the level of urbanization or the proportion of urban population to the total

population was 45.3 percent and rose to 51.2 percent, a major jump was observed since

2015. (https://psa.gov.ph/content/urban-barangays-philippines-based-2010-cph).

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The shift in population is not only a demographic distortion, but also causes

environmental distortion due to land conversion, illegal settlements, garbage disposal as

well as other resources over utilization.

Relevance:

Since there is a significant increase of urbanization among former rural areas

and highly urbanized areas outside the NCR are vast becoming new metropolises or

super urban areas, these also gives rise to new business districts such as the Santa

Rosa-Tagaytay Business District in the Laguna-Cavite boundary, the Vermosa-Vista

City Business Development in Cavite, the New Clark City in Tarlac among others.

In line with this development is the Transport Network Build, Build, Build

Initiative of the government, also to mention the future development of a new

international airport in Bulacan and an international seaport and container terminal

in Sangley, Cavite.

The potential of establishing and servicing these emerging markets is highly

probable, enabling the company to establish a new base by which customer

acquisition could be made.

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II. INDUSTRY AND COMPETITOR ANALYSIS

1. Industry Analysis

A. Market Size and Industry Growth

The Philippine Non-Life Insurance industry net premiums grew 16.24 percent in

2016 compared to the previous year, with a market penetration of less than 20%.

(https://business.inquirer.net/255709/need-know-road-safety-philippines).

The industry is expected to grow in a faster pace major economic improvement

continues increased intensity and frequency typhoon and monsoon, and the need for

business/asset recovery and protection.

Through the years Filipino Consumer progressive developing its capacity and the will

to somehow ensure their hard-earned assets, and look for solutions to protect it, from

factors they cannot control.

B. Market Share Analysis – The key categories were used to asses and analyze the

current standing and performance of BPI MS.

1. Premiums Earned – The Industry posted a Grand Total of PHP 45,576,056,500

of premiums earned, in which Prudential Guarantee dominated with 10%.

Table 4.1 (Premiums Earned refers to Company Earnings based on Premiums

collected)

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2. Assets – The Industry posted a Grand Assets of PHP 221,948,936,768,

solidifying Malayan Insurance as the biggest with an Industry share of 17% six

percent greater than closest rival Pioneer Insurance. (Assets would refer to all the

firm’s capitalization, cash on hand, proprietary and generated revenue)

Table 4.2 Top Five Non-Life Insurance Companies based on Assets

3. Net Worth – The Industry posted a Grand Net Worth of PHP 76,420,345,987, in

which 18% of the chunk belongs to Pioneer Insurance and Surety Corp. (Net

Worth would refer to Company Assets less All Liabilities and Obligations)
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Table 4.3 Top Five Non-Life Insurance Companies based on Assets

4. Paid-Up Capital – Standard Insurance Company posted the highest paid-up

capital with 4%. (Paid Up Capital would refer to equity of shareholder)

Table 4.4 Top Five Non-Life Insurance Companies based on Assets

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C. Market Mix

1. Product and Profile Mix

1.1 Product Mix

The Non-life industry provides an array of insurance products and services both

for retail individual clients and business clients. The products are usually categorized

as Fire-Property Insurance, Car and Motor Insurance, Marine and Aviation

Insurance, Casualty and Surety. While it is true that most of the Non-Life insurance

consumers are the affluent and mass-affluent sector, those belonging to the lower

income households who intends to protect their personal assets are being serviced by

the uprising product segment of micro-insurance.

There is a promising growth in the areas of micro insurance and cyber insurance

due to the responsive and adaptive nature of this product, however improved

perception and speedy processing on claims is an area to work with.

Table 4.5 Five Year Trend of Products and Services sold.

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1.2 Customer Profile and Segmentation

The customer profile of BPI/MS can be segmented in to Personal Clients

(Retail Clients), Business Clients (Corporate Clients) and other Insurance

Companies/Providers.

It is critical to be dynamic in understating the needs and demands of both

segments in relation to the product mix in order to deliver better service.

Illustration 4.3 Customer Segmentation for Product-Solutions Matching

BPI MS
INSURANCE CORP

INDIVIDUAL
CLIENTS BUSINESS OTHER
(RETAIL) CLIENTS INSURANCE
(CORPORATE) COMPANIES

PERSONAL BUSINESS
ASSETS, /TRANSACTION
ASSET
FIRE/CAR/ PROTECTION
PROTECTION

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2. Pricing – The Balancing Act of Customer Acquisition and Risk Exposure

Insurance solutions pricing largely depends on the Risk Exposure of the item

being covered (refers to the quantified loss potential of a business).

https://searchcompliance.techtarget.com/definition/risk-exposure.

The higher the insurance coverage and benefit and the higher the risk exposure,

Pricing also takes into account the features and benefits of the products and the

recovery of cost-of-doing business.

The coverage and premiums are set based on the cost of insurance, operational

cost, insurance reserves, underwriting, and other related factors in relation to the

Risk exposure.

Table 4.6 Risk Exposure of Business and Individuals (Based Product Category)

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Such risks taken into account are the Internal and External risks, the internal

risks refers to failure in internal processes and mechanism while external sources of

risks are regulatory changes, government direction and stability, economic

influences and the aggressiveness of competitors.

BPI MS must be prudent in balancing customer acquisition and risk exposure, to

enable to be a more dominant key player industry, maintaining stable and

reasonable prices while still offering premium coverage.

3. Process Improvement-Strategies

BPI MS aims to set itself apart9999999 in terms of business process

competency. One key area would be the current quotation turn-around response

(example: the further improvement for Motor Vehicle, currently it should be less

than 24 Hours/within the business date).

Making after-sales support and claims processing top priority in process

improvement, would be a major strength since this would increase positive

reputation and spread the company’s reliability.

A smooth process from application filing, verification and up to payment is also

anticipated to further improve, particularly through the use of analytics, alternative

channel and internet banking facilities. Further training of personnel and use of

industry best practices is also a critical component in this endeavor.

4. Promotion and Placement – Sales and Marketing Channels

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One key feature of BPI MS being a Bancassurance company is its ability to

utilize over 800 BPI branches and BPI Family Bank plus branches, add that to the

in-house sales team and affiliate agents/brokers. Given this accessibility advantage

it becomes an affiliate/extension office for point of contact for clients. This also in

turn facilitates the product promotion and sales campaign.

BPI/MS has and independent web portal linked to BPI Express Online facility of

the BPI and BFB clients, it is also integrated in the BPI Mobile App, aside from the

use of alternative channels, BPI/MS utilizes the traditional Media like Print, Radio

and Broadcast, affiliate referrals and client endorsements also form part of its

marketing.

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Illustration 4.2: The BPI MS Insurance Corporation, Sales and Marketing

Distribution.

BPI MS INSURANCE
CORP

BPI BRANCHES / BPI

OTHER INSURANCE
FAMILY SAVINGS
IN HOUSE SALES COMPANIES
BANK OFFICES

RETAIL CONSUMER
LICENSED AGENTS
BANKING CORPORATE
/AFFILIATES
BANKING GROUP
BROKERS

Illustration 4.3: The BPI MS Insurance Corporation Promotion and Marketing

Channels

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BPI MS INSURANCE
CORP

ALTERNATIVE BRANCH
CHANNELS BANKING

ONLINE BANKING BFB BRANCHES

MOBILE
BPI BRANCHES
BANKING

TRADITIONAL AFFILIATE
REFERRALS
MEDIA COMPANIES

5. Managing Cost-of-Business

The key concern for the cost of doing business is Industry wide and is true for

BPI/MS. The Industry relies heavily on the economic, environment and

governmental factors, as previously stated in the PESTLE analysis of this paper is

the direct effect of rise of the Paid-up Capital requirement and Net Worth

requirement. It would mean additional costs for the company, though BPI MS is

compliant with the regulation, the opportunity to utilize these resources for

investments and business growth is limited.

Furthermore, the Insurance Industry is highly optimistic with the legislative

initiative in the decrease of tax rates for Non-Life Insurance would ease some

pressure. The exposure to environmental events and other acts of nature poses

another challenge to the industry.

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6. Problems in the Industry

The biggest problem the Non-Life insurance industry faces, is the perception of

public that the processing of claims very stringent and takes too long, around 83%

where dissatisfied (PIRA Factbook 2018). This results in clients’ dissatisfaction, and

turning into cheaper/unsecured alternatives or not to trust insurance at all.

This holds true also for BPI/MS. To address this, BPI/MS should be able to

adopt Industry Best Practices and further develop its human capital.

7. 10 Critical Success Factors

7.1 Market Share – Market share is a key indicator of the company’s position in

the market. Currently among the top players, BPI MS has a lot of catching up to do

with Pioneer Insurance and Malayan Insurance.

Illustration 4.5 Comparing the Top 5 Companies in Net Worth

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Illustration 4.6 Comparing the Top 5 Companies in Assets

7.2 Company’s Revenues and Profit – Currently BPI MS possess the best income

and profit, far better than Pioneer and Malayan, prudent risk management and sound

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business direction are seen as the main drivers, however BPI MS goal is to establish

market leadership and further increase its annual revenue by 5%.

7.3 Advertising and Marketing – BPI MS mainly utilizes BPI and BFB branches

for its promotional drive, it also maintains its own web portal where company and

product information are available.

7.4 Price and Product Competitiveness – BPI MS offers market competitive

products with good coverage at a competitive price.

7.5 Bancassurance999 Affiliation – The affiliation with one of the Country’s most

trusted bank has enabled BPI MS to have an initial base of clients, particularly in

the Fire and Property Insurance as it is securing the Home Loan of the bank, Motor

vehicle for the car loan. BPI MS is also top of mind by the cargo-logistics company

clients of the bank particularly those with Japanese Affiliation.

7.6 Assets and Paid up Capital – Even though BPI MS has not topped this

category, it was able to meet the requirement set forth by IC in terms of asset build

up, the paid up capital

7.7 Executive Management – The Company as shown in its five year Asset-Net

worth-Income summary, has always been in the top five in terms of income, largely

to the direction and competence of the management, however increasing market

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share and developing a broader client base is necessary to sustain the business

momentum towards its quest for market leadership.

7.8 Customer Loyalty – Largely due to its affiliation with BPI, BPI MS enjoys the

loyal client base of the bank, add to this the BPI MS product quality and ease of

transaction.

7.9 Employee Engagement and Dedication – The dedicated and highly trained

workforce has been one of the aces of BPI MS, making its agent and operations

staff in demand with other insurance provider,

While employee engagement is still at high and attrition manageable, taking

into account the critical role of frontline and operation employees should be

prioritized, making sure of safe and secure working conditions as well as

competitive remuneration would further secure these valuable workforces.

7.10 Market Penetration – The potential for further market penetration is very

high, currently the market penetration is only at 20%, given the environmental and

economic conditions, the demand for Non-Life insurance surely will be still on the

rise.

Table 4.7 Top Ten Critical Success Factors

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III. PORTER’S FIVE FORCES

1. Rivalry among Competitors – High

The Non-Life insurance industry is in competing terms with one another, this is

manifested and differentiated through synchronized sales-service, product diversity,

feature variety and brand marketing. BPI MS has its fair share of top competitors,

top of mind are Malayan Insurance Company Inc. and Pioneer Insurance and Surety

Company.

Additionally, industry players faces the challenge of how to stand out, given the

undifferentiated services (non-life insurance providers offer the similar services like

surety, asset protection and casualty coverage to name a few), insurer would compete

with each other even more to get a larger market share and customer acquisition

while taking into account sound risk management.

2. Threat of Substitutes – Low

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There are no direct substitutes for non-life insurance services other than the

substitutes of the non-insurance companies that have quasi-surety functions. In the

insurance industry alone, only the Life Insurance and Non-Life Insurance sectors are

considered.

3. Bargaining Power of Suppliers – Moderate

Traditionally, the suppliers of insurance companies are only for business

machines, marketing peripherals and other various forms.

Prices are subject to change depending on the market condition and these

materials and equipment are necessary for the banks to function in their business

transactions, the insurance industry mutually benefits these suppliers, since these

insurers would have good credit standing and payments made are done regularly.

4. Bargaining Power of Buyers – Moderate

The consumers of the insurance companies are either individuals or corporate

accounts. They can easily choose to secure and protect their assets in different

insurance providers depending on the price rates, coverage and company reputation.

Similarly, the insurance providers being the supplier, gives these products and

services to benefit the buyers financially and economically.

Insurance providers with bank partnerships like Malayan Insurance, Charter

Ping-AN (now Philippine AXA Non-Life) and BPI MS is faced with responsibility

of ensure satisfactory service in order to contribute with banks portfolio.

5. Threat of New Entrants - Weak

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With current net worth requirement of Insurance Commission, and the necessity

for a high paid-up capital requirement, the emergence of new entrants and new

major players are unlikely. It is important to note that the possibility of mergers and

consolidations are expected in the smaller players in order for them to meet capital

requirements and preserve their businesses.

Illustration 4.7: Porter’s Five Forces Summary

POTENTIAL OF
NEW
ENTRANTS
(WEAK)

BARGAINING
POWERS OF INDUSTRY BARGAINING
SUPPLIERS COMPETITION/ POWERS OF
(MODERATE) RIVALRY CUSTOMERS
(STRONG) (MODERATE)

THREATS OF
SUBSTITUTE
(LOW)

IV. SUMMARY OF KEY EXTERNAL FACTORS

Table 4.8 External Factor Evaluation EFE Summary

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The External Factor Evaluation (EFE) matrix is used to summarize and

evaluate the key opportunities and threats in the industry.

The summary presented in Table 4.8 shows the total weighed score is 2.66

indicating that the company is responding near above-average to the opportunities

and threats. However this also implies that BPI MS in order to achieve its quest for

market leadership, must make more room for improvements and seize the

advantages it have in order for promptly respond to these external factors, and

recognize great opportunities amidst the middle of threats.

The emerging millennial and cyber industry market and the growing

Philippine economy is a great opportunity for BPI MS to establish foothold and

increase its market share. Natural calamities and high incidence of vehicular

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accidents is substantial threat as well as the increase in capitalization requirement

by the government.

CHAPTER5. COMPANY ANALYSIS

The chapter aims to analyze and present the key areas of Human Resources,

Marketing Strategies and Business Operations,

1. Human Resources

1.1 Employees and staffing requirements

BPI MS Insurance Corporation workforce of 600 personnel in 2018, five

hundred eighty-four (584) or 97.33% completed the 5-day mandatory training day

requirement. The training of employees are based on the competencies which are

analyzed and evaluated every year to ensure that employees are equipped with the

necessary skills and knowledge to handle the job. (BPI MS 2018 Annual

Sustainability Report).

BPI MS is constantly filling up positions due to business expansion and

reducing employee attrition, furthermore BPI MS is able utilize indirect marketing

and sales assistance through BPI and BPI Family Bank branches,

1.2 Compensation and Benefits

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BPI MS utilizes salary scheme which is above the mandated Minimum

Salary which is gradually progressing based on length of service, competence and

specialization.

All employees are subject to mandatory contributions like SSS, Phil health

and Pag-Ibig. They are also giving to 13 th month pay, and additional bonuses,

personal loans and financial assistance are also available. Annual medical-dental

allowance and group health card are also given. The range of the salaries was not

disclosed due to confidentiality.

1.3 Training and Development

Professional development initiatives are prioritized to help career growth,

through skills and job enrichment opportunities. Learning and development

programs, performance management and promotion systems are reviewed in order

to meet the changing work dynamics. (BPI MS Insurance Corp 2018 Annual

Sustainability Report).

Officer and Specialist training courses are set in place to ensure workforce

competence, additionally all personnel undergo Data Privacy Training, AMLA

Training and Customer Service and Welfare Quality Training, this is also a

mandatory requirement as disclosed in the

Illustration 5.1: BPI MS 2019 Corporate Governance Policy Affirmation.

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The BPI Workforce being the life blood of the Company, is being focused to

achieve excellent performance based on the Corporate Mission, however to sustain

this efforts, employees-officers and staff alike must be aligned in a high

performance culture guided by core corporate values. To fully adapt to the evolving

conditions of the new business environment, employees should be continuously

trained and developed, to enable them to deliver company expectations.

Development in Human Resource (Suggestions):

The company in order to align its workforce to its mission, it is suggested

that BPI MS adopts and explicitly state core corporate values, in which business

culture and behavior would find commonality and unity.

Workforce career development, appraisal and employee progression should

be monitored efficiently in order to maximize the talent and competence, also these

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would enable the company to secure personnel who are performing and reduce

employee attrition due to stagnation.

The researcher further suggests to have an on-call Bancassurance Solutions

Specialist stationed in key Business Areas and Mega Branches in order to expedite

quotation requests, coordinate claim-concerns, and facilitate branch sales requests.

2. Marketing Strategies
2.1 The Sales and Marketing Set-Up
Illustration 5.2 Sales and Marketing Flow Chart

The marketing/sales team is headed by COO- Business Director Ma.

Perpetua Cutiongco under her leadership is the Retail Sales and Marketing Division

in charge for individual personal clients and the Corporate Sales and Marketing

Division in charge of institutional clients and business clients.

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They are primarily tasked to be in charge of generating sales or

premium for the company. The utilization of both traditional and alternative

marketing channels are in place. Together with the bank-branch partners, they

are responsible for customer acquisition and business development.

3. Business Operations - Illustration 5.4 Input-Process-Output Flow Chart

In the competitive nature of the Non-life Industry, prioritizing customer

satisfaction and meeting the need for solutions delivery is the business core, clients

may opt not to renew if not satisfied and may refer to other if satisfied.
4. Summary and Conclusion - Illustration 5.5 The IFE Matrix

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The IFE Matrix result score of 2.60 for BPI MS Insurance Corporation, this

is slightly higher than the weighted average of 2.50. This reflects that the company

has the ability to further utilize its Bank-Branch Affiliation (Market Penetration)

and serve the emerging demand from Cyber-Data related businesses and Emerging

markets of developing urban areas (Market Development).

This is feasible for the company, as they have solid financial performances,

outstanding customer service, and prudent risk management measures, also to

mention that they have been in the top five in the industry in term of profit.

Illustration 5.5: The SPACE Matrix

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The SPACE Matrix is a management tool used to analyze the business

standing of a company. It is used to determine what type of strategy a company

should undertake (www.maxi-pedia.com)

Illustration 5.6: The SPACE Matrix (Factor Table)

5. Financial Performance

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The table below provides an overview of the financial performance of BPI MS

Insurance Corp for the past 5 years from 2014 to 2018. It indicates how the

company is performing and in terms of Assets, Net worth and Income.

The company’s assets is on an uptrend for the past 5 years, from P7.37 B in

2014 to P 12.80 B, largely due to the consistent acquisition of new customers as

well as getting additional volume of premiums existing BPI clients. Company net

worth is also on an uptrend from P 2.0B in 2014 to P 2.75 B in 2018, it also has

managed to recover profit in the last two years versus 2015-2016, however the

posted income in 2014 is still aimed to be duplicated.

Even though BPI MS posted industry best net income, such standing would

be minimal if it would not be able to eat the chunk of market leadership from

Malayan Insurance (in assets and premiumsearned) and Pioneer Insurance and

Surety Corp. (in gross premiums and net worth)

CHAPTER6. STARTEGY FORMULATION

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The SWOT Matrix is an analytic tool used to help a person or organization

recognize its Strengths, Weaknesses, Opportunities and Threats; this is generally

used in business, competition or project planning. (https://www.mindtools.com)

It is intended to state specific objectives of the business, and identify be able

to identify the internal and external factors that are favorable and unfavorable to

achieve those objectives.

1.1 SWOT Matrix / TOWS Matrix SO Strengths-Opportunities Matrix

1.2 SO Strategies

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- The advent of the 4th Industrial revolution and the rise of the

Cyber/Data industry translates that there is a market gap of that BPI MS must

improve its customer portfolio.

- BPI MS has a competent sales force, armed with product knowledge

and customer welfare orientation. The company is in a position to positively

respond and take on the opportunities, as it continues to improve its financial

positions.

2.1 SWOT Matrix / TOWS Matrix WO Weakness-Opportunities Matrix

2.2 WO Strategies

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The company needs to entice is workforce particularly the newbie’s (newly

hired up to 2 year experience) through the benefits and incentives to help them

to develop in their insurance career. To lessen the manpower attrition, means a

creating deeper workforce engagement.

Developing higher level competency in responding and identifying sales

opportunities, customer welfare orientation, service delivery and marketing

efforts, particularly on expanding its market share, maintaining profitability

and capturing/acquiring new client bases.

BPI MS being a good corporate citizen must adhere and follow legal

regulations, adopt industry best practices as mandated by the Insurance

Commission, ASEAN Corporate Governance and recommendations from

PIRA.

3.1 SWOT Matrix / TOWS Matrix ST Strengths-Threats Matrix

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3.2 ST Strategies

BPI MS must utilize and maximize its strengths to soften the impact of

external factors.

o The capitalization requirement will give the company an additional cost

and create certain financial/investment limitations, the other end of the

spectrum it ushers a barrier for a new competitor as well as further

stabilizing the industry.

o The exposure to natural calamities and catastrophes can be turned into

business possibilities and In 2018, the total of sums insured for natural

catastrophes amounted to a total of almost over PHP 3 Trillion, for

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typhoons, earthquakes and floods. This shows the growing awareness of

Filipino on climate and natural risks. (www.bpi.com.ph 2018 Annual

Sustainability-Integrated Report pn-61).

4.1SWOT Matrix / TOWS Matrix WT Weaknesses-Threats Matrix

4.2 WT Strategies

The Non-Life industry is in a stiff and intense competition, both in price

and in features, though the possibility of new entrants is minimal it is expected

that some of the players would go consolidation and mergers to meet the IC

requirement.

BPI MS quotation and pricing is competitive and is reasonable for the

company to provide premium prices, given that premium coverage and

additional special features are at offer. With great after-sales support, speedy

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claims processing and ease of transacting would greatly contribute to BPI MS

value for money prices.

5. The Internal and External Factor (IE) Matrix

The IFE Matrix is another strategic management tool used to analyze

working conditions and strategic position of a business. This is based on an

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analysis of internal and external business factors which are combined into a

suggestive model. (https://www.mbaknol.com/strategic-management/internal-

external-ie-matrix/)

The IE Matrix of BPI MS tells us that the company with an IFE result of

2.60 is a little above average internal strength and EFE of 2.66 which means it is

a little above average in terms of its adaptation and reaction toward external

forces.

6. Quantitative Strategic Planning Matrix

This analytic method is used to evaluate the best possible approach or

strategy; this is done through the use of comparing the most feasible alternative

actions. (https://www.mbaknol.com/strategic-managemen). BPI MS Insurance

course of strategies as derived from the matrix would be Market Penetration and

Product Development.

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CHAPTER7. OBJECTIVES, STRATEGIES AND RECOMMENDATION

Chapter VII

Objectives, Strategies and Recommendations

Strategy and Financial Objective

Strategic Objectives:

1. Grow market share by adding quality customer acquisition and business

portfolio in the business segment by 12.5% and the retail individual segment by

7.5% within the next five years.

2. Continue prudence, risk management and service quality orientation particularly

in the established market sectors.

3. Consistently be in the top three major players in the industry, in all significant

sustainability indicators.

Financial Objectives:

1. To maintain income position thru market share growth, process innovation, ease

of transacting, sound payment channel and collection systems, risk aversion and

customer portfolio growth (thru customer education on asset safety and

security).
2. To gain market share it term premiums earned and net worth by not less 5%

annually, and improve industry standing to be among the top three major

players.
Recommended Business Strategies

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1. Expand the industry share by getting more customers in the emerging Millennial

Market and MSME market through micro-customized insurance, and penetrate

the emerging Cyber/Data Industry Market.

2. Grow market presence by establishing service offices, assigning solutions

specialists and alternative channels in the emerging urban areas and new

business districts.
3. Synchronization of customer profile and needs assessment, acquisition, risk

aversion, products, services and payment and claims channel.

4. Further utilize bank-branch affiliations by establishing business rapport and

contact support to frontline personnel, particularly those handling loans

processing, investments, business and preferred accounts.

Recommended Organizational Strategies

Management Prudency and Accountability

The researcher suggests senior management and top level executives

advocate the growth of the company, therefore business interest and dealings should

be not counter act nor be in conflict with objectives of the company.

Human Capital Development
The researcher suggests that the workforce be further equipped with

competencies to perform their duties, as well as favorable working conditions, their

welfare will be the part of the utmost concern and priority of senior management to

mitigate and limit attrition and employee disengagement.

It is also expected for the workforce to deal with integrity, act diligently and

commit to values of trust and excellence. Only to use industry best practices and act

according to the confines of the laws and regulations of the land. BPI MS

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employees, being a part of two herald institutions, is expected to become a reliable

and efficient partner of its bank-branch affiliates.

Marketing and Promotion
It is the researcher’s aims that the company would be at the forefront of

servicing the Millennial Segment, the emerging segment of Cyber-Data Industry

and the promising sector of Business Start-up and MSMEs.

With Needs-Solutions based products that are responsive and competitive

pricing, it is hoped that a significant increase of bank-branch turn-ins, client-

referrers and meaning word-of mouth advertising would rise.

Summary of Strategies

Strategy Map
Illustration 7.1: The Business Strategy Map

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Financial Projections
Illustration 7.2: The Financial Projections

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CHAPTER8. STRATEGY EVALUATION AND MONITORING

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The balance scorecard is the strategy evaluation method utilized to help

assess the key business areas. This tool helps identify the improvements necessary

in various business functions such as Finance, Customer, Internal Processes and

Learning and Growth. It details the sets of objectives, measurement or assessment

benchmark, the target aims, and the defined timetable to be met.

Based on the analysis made in the previous chapters, the balance scorecard

presented aims to serve as guide in the company’s strategic endeavors. The balance

score card also serves as counter-check or feedback provider for the organization.

(https://www.investopedia.com).

Illustration 8.1: The Balance Score Card

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CHAPTER9. CONCLUDING REMARKS

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The Philippine non-life insurance business scene has been very dynamic

over the recent years, due to the influence of technology, generation emergence, and

shifts in economic drivers.

Traditionally a business sets gets profit and then acquires assets, as a

business grew they build their wealth over these assets. In the uncertainty of the

events and dynamism of various probabilities, the need for asset protection and

various surety solutions is of greater necessity, now more than before. It is

undeniable that Non-Life Insurance industry presented with stiff competition,

stricter regulation and various socio-economic influences/factors at play. The

demand for its products and insurance solutions is expected to continuously rise.

BPI MS Insurance, as an aspiring leader in the industry. Has to have the

ability to sustain and accelerate its growth, not only for itself, but for more so for

the service of its consumers and stakeholders. The aim of this strategic management

study is to help provide and contribute strategies to the consistent improvement of

the company.

To realize that, the company shall focus on market penetration by further

utilizing its in-house sales team, bank-branch affiliates, client referrals and inter-

company affiliation. It is also aiming to establish major presence in the emerging

Cyber/Data Industry market as well as the Micro-Retail Insurance Market.

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With this, the company will be able to reach its goal of market leadership in

premiums earned, assets, net worth, maintain its profitability standings and

accelerated growth in other major sustainability indicators.

Proper utilization of these strengths and advantages, and with its value for

integrity, risk management, and prudency, as well as sound strategic management.

BPI MS shall continue to improve and expedite its market share target and sustain

its profitability, and will be able to fulfill its Vision.

It is the firm belief of the Researcher that BPI MS has ability, prudence and

heart to be the more responsive, more reliable provider and growth business partner

of the society, and to be top major player in the industry, and to gain lead in industry

market share within the next 3-5 years.

Ethical Declaration
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The researcher hereby ensures that all pertinent information and presented in

the study were properly declared. Such data used in the study is obtained from the

Corporate Business Papers such as but not limited to Articles of Incorporation, By-

Laws, General Information Sheet. The Audited Financial Statements used were

disclosed by BPI/MS as a public document through its official web portal and

sustainability reports as mandated by The Insurance Commission of the Philippines

and in adherence to the ASEAN Corporate Governance Scorecard.

Data gathered for the peer competitors were obtained thru its respective

websites, while the Audited Financial Statements used were by the respective

companies was obtained in their respected Corporate Annual report as part of their

compliance to Insurance Commission and ACGS, the same Audited Financial

Statements were also filed annually to the SEC, which are made available for the

public.

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