theceomagazine.com | 81Bank Insurance can provide more cost-
effective insurance packages for second
to sixth class municipalities.”
Another opportunity the company is
looking into is financial services catering
to the Filipino Muslim population. In the
event that an autonomous Muslim region
is established on Mindanao, LIBI will be
ready to offer takaful (literally, ‘solidarity’)
insurance, a form of insurance that complies
with Islamic law. As of now, Tom has noted
that none of the big banks are providing this
service, allowing LIBI to occupy another
market niche.
It’s appropriate that LIBI’s business
approach is an inclusive one, providing for
many different facets of Filipino society.
Tom’s leadership style is, after all, equally
inclusive. “I’m very collegial,” he says. “I go
for a participative approach to management
because no single person, no matter how
good they are, can have a mastery of all
things. By asking for input, you enrich
yourself and hopefully enrich your people
too. I’m not an autocratic type of person.”
As well as this, Tom encourages his staff
to actively seek out the improvement of their
skills and abilities. “I ask them about the kind
of training they need,” says Tom. “I believe
that all training and developments start with
self-development and the person who figures
out what they need.”meeting these people, talking to them and understanding
their concerns as a member of Land Bank’s board of
directors, I got to understand exactly what was needed
and how we can fulfil that.”
This gives an indication of both LIBI’s social awareness
and its insight into untapped niches in the market. While
other insurers also provide services for smaller entrepreneurs
and business owners, LIBI’s unique focus on farmers and
fishers provides for the less fortunate in Filipino society, and
leaves the insurer with a unique business strategy. That said,
Tom is always looking to expand on this vision by offering
services to a greater cross-section of the population.
“We want to lead the way by opening up opportunities
that other insurance brokerages or companies haven’t focused
on,” Tom explains. “For example, in about a month’s time,
I’m going to the Zamboanga Sibugay area, which is one of
the outermost regions of the Philippines. I want to provide
insurance for farmers and fishers there. In traditional
insurance practice, it is not considered a viable area for
coverage, but I think micro-insurance is the answer.”
Micro-insurance is a form of insurance that functions as
normal insurance, but is targeted specifically towards lower-
income groups, keeping premiums and coverage low. As an
example, Tom suggests a micro-insurance policy could offer
a payout of PHP100,000. This is roughly the average annual
income of a farmer in the Philippines, and thus would be
a valuable assistance to a low-income worker.
LIBI also uses its smaller size to offer services to
parties outside the scope of government providers. “The
Government Service Insurance System is mandated to cover
cities and first-class municipalities,” says Tom. “But the law
allows other insurance providers to cover the second to sixth
class municipalities. GSIS is a large government insurance
company, and as size dictates, may come with bureaucracy
and service difficulties. A small insurance brokerage like Land
“WE WANT TO LEAD
THE WAY BY
OPENING UP
OPPORTUNITIES
THAT OTHER
INSURANCE
BROKERAGES OR
COMPANIES HAVEN’T
FOCUSED ON.”
“LIBI’s full grasp of the mechanics of the life insurance industry allows BenLife to
live up to its mission to contribute to our country’s development and progress
by helping make life insurance available to most Filipinos.” – Jaime C Fernandez,
President & CEO, Beneficial Life Insurance Co., Inc
Interview | INNOVATE