Despite the Pre-Need Industry Crisis - Prudentialife Remains Steadfast

The Philippine pre-need industry is still riding out the most trying times it had to face in the aftermath of the financial difficulties of some of its major players. Some had folded up or are under rehabilitation while others remained steadfast. One of them is Prudentialife.

Prudentialife Plans, Inc. President Jose Alberto T. Alba said, “You have to look at what is happening to the industry. Look at the conditions, look at the trend and from there you have to re-strategize and recreate”.

The industry-wide shake out prompted corporate regulators to impose stricter rules aimed at protecting the interest of planholders.

These include the actuarial reserve liability or ARL, a measure that pre-need companies have a hard time accepting.

“We are actually, as an industry, trying to contest the computation of the ARL. You know, we are actually computing this based on future liabilities, you assume certain assumptions. Now, that assumption can change in the long term, “ President Alba added.

Another measure being imposed by regulators is the adoption of the new international accounting standards.
“We are happy that the regulator allowed a deferral of the implementation of the IAS. We’re supposed to submit an IAS complaint IAS pro forma statement sometime August to compare the difference between two accounting standards and based on that we can come up with a good transition guidelines, “ Alba explained.

Prudentialife is facing the challenges in the industry head on by recreating the company’s strategy as it enters its 28th year in the business.

“Right now, we are training our people to carry several product lines. Even if there is a contraction in the pre-need industry, then maybe, that could be compensated by our health products. “ Alba said.

Prudentialife’s new diversified product portfolio includes financial services such as credit cards and add-on services such as complete memorialization that complement its pre-need products.

Prudentialife is also venturing into real estate development convinced that the property and tourism markets are on the uptrend.

Its flagship project is the 400-hectare Akean Resorts close to Caticlan, the jump off point to Boracay Island.

Prudentialife Founder and Chairman Ambassador Francisco A. Alba said, “ It would be an ideal place for tourism, especially since Boracay is already a well-established destination so it would be a magnet for people to come here.”

Prudentialife is optimistic that with its ability to embrace change and seize opportunity amid challenging times, the company can continue its mission to serve the Filipino family.