INSULAR HEALTH CARE, Inc. (IHC) sees the health maintenance organization (HMO) industry recovering this year as consumer demand normalizes.
“We have overcome the challenge. I think we will start to see normal levels of medical utilization this year,” IHC President and Chief Executive Officer Noemi G. Azura said to BusinessWorld on Wednesday.
IHC is the HMO of Insular Life Assurance Co., Ltd.
Ms. Azura added consumer demand for health coverage will begin to normalize as the coronavirus pandemic highlighted its importance.
HMO members last year deferred their medical consultations and procedures, which Ms. Azura said resulted in consumers saving their healthcare funds.
Despite this, consumer spending on health maintenance was normal over the last three years during the pandemic, she said.
IHC’s growth will likewise be driven by the normalization of health coverage demand, as well as its retail and e-commerce segments, Ms. Azura said.
“I look at the tailwind that we have, which is really the increased awareness by the consumers on the importance of health coverage. We will ride on that tailwind to grow our business,” she said.
Its retail segment, which grew five times over the last five years, will likely see this trend continue this year, Ms. Azura said.
IHC’s compounded annual growth rate (CAGR) over the last five years was at 29% as of September 2022, which was higher than the industry’s 8.5%, she noted.
Meanwhile, its e-commerce channels saw a significant increase after the pandemic, Ms. Azura said.
“People are starting to go digital so they use e-commerce more,” she said.
A significant percentage of IHC’s sales still come from traditional channels, such as through the agency and its employees, she added.
IHC posted a net loss of P7.352 million last year versus the P81.929-million net income it booked in 2021, data from the Insurance Commission showed.
The HMO industry posted a net loss of P1.435 billion in 2022, a reversal of the P5.145-billion net profit it booked in 2021, IC data showed. — A.M.C. Sy
