BDO Insurance Brokers, Inc. – a Case Study

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BDO Insurance Brokers Inc., a wholly owned subsidiary of Banco de Oro Unibank, is a team of seasoned industry professionals specializing in property, casualty insurance, healthcare, life assurance, and employee benefits. Contrary to popular belief, insurance is a complex and specialized subject that even experienced practitioners like us encounter unexpected issues in.

To enhance our customer service, we are consistently devising plans and endeavors for the year 2012 and beyond, with a special focus on the highlighted units of Marketing, Claims, and Operations. Urgently, in order to tackle the issues at hand, recruiting more personnel (2 for Marketing and 1 for Operations) is paramount. Additionally, promoting our senior staff members to Officers rather than hiring external applicants can aid in reducing administrative expenses.

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One recommendation is to design incentive programs to motivate our referrers, which includes both employees and ensures our clients about the financial standing of our Accredited Insurance companies. BDO Insurance Brokers Inc. was established in 1998 to cater to the insurance needs of BDO, the country’s leading bank, as well as SM (the country’s top retail chain) and its affiliates.

Throughout the years, BDO Insurance (BDOI) has grown alongside BDO Unibank, becoming a comprehensive provider of risk and insurance solutions and advisor for its clients. Currently, it is one of the top three insurance brokers in the country, managing assets valued at over 200 Billion. From being ranked as the 40th insurance broker in its inaugural year in 1998, it has now risen to no. 4 in terms of premiums (Php 2.671B) and no. 1 in terms of commissions (Php 507.4M), based on the most recent Insurance Commission data as of December 2011. We offer Strategic Risk Management to safeguard your Balance Sheet.

Our dedicated team of Risk Management professionals work closely with you to understand your operations and protection requirements. They assess risks and recommend strategies to either eliminate or minimize these exposures, ensuring that your business goals are met and your financials and brand are safeguarded. We take pride in our reputation and strong market presence, both of which are supported by our parent companies, BDO and SM Group, respected leaders in the industry.

As brokers, we assist clients in identifying risks, analyzing and evaluating their exposures, and designing customized insurance programs to meet their specific needs. We represent clients in negotiations with insurance companies, coordinate program design with clients, and implement comprehensive and competitive coverage options. Additionally, we review contracts and other insurance documents, expedite claims settlement processes, and provide regular updates on industry trends and new products available in the market.

Marketing is the production arm of our company, with the main objective of reaching the monthly quota. Their activities serve as the entry point for our business. They are responsible for actively generating leads and seeking referrals and customer profiles from our bank counterparts, existing clients, and personal and professional network. Depending on the property’s needs and borrower requirements (if mortgaged to bank), they promote and offer different insurance lines. If our current packages do not cover it, they will request quotations or proposals from our Accredited Insurers.

Currently, the Marketing team is staffed by the Head and a marketing staff. Management has imposed a 30% increase in budget. According to Marketing Head, Amelia Monton, they were unable to meet their quota for February due to several justifiable reasons: they were unable to materialize accounts in their pipelines; some clients are undecided about renewing their accounts due to previous claim issues; branches and other bank units lacked motivation to refer leads; existing and new clients were hesitant to insure their properties due to news of another insurance company’s financial crisis.


Additional manpower (1 Account Officer & 1 Marketing staff) will be hired and expected to report by the first week of April this year. The new Account Officer is from another insurance company and has extensive background in underwriting. The newly appointed Unit Head, Elmo Bontuyan, believes that she can help generate more accounts, especially in HMO (Health Maintenance Organization), while the additional staff is from the BDO branch.

This pair is expected to handle all inquiries and requests from other bank units, such as Consumer Lending Group and Commercial banking, specifically for mortgaged properties. BDO has 20 branches in the Davao Area alone, where they rely on assistance for client calls, inspections, and knowledge about BDOI products. PRODUCTS AND SERVICES Our range of insurance solutions is not limited to the items listed below.

Alongside our services and insurance lines, we provide expert advice and guidance from our risk management professionals. They assist in identifying specific business risks and devising strategies to reduce them. It is important to note that although we offer a wide range of services, there may be instances where Accredited insurers decline to accept certain risks associated with loans. In such cases, BDOI evaluates, pre-underwrites, and matches the risk with prospective insurers who are willing and equipped to adequately cover the associated liabilities.

As the insurance arm of the bank, BDOI regularly reviews and monitors the financial status and service performance of insurance companies. Accredited insurers meet BDOI’s requirements and adhere to the company’s standards in the key areas of Financial Stability, Services Quality/Reinsurance Treaty Facilities, and BDO Relationship. Our Insurance Lines provide protection against various types of losses.

Fire Insurance covers real estate, machinery, equipment, and stocks against physical loss, destruction, or damage caused by fire and other catastrophes. It also provides coverage for motorcars, trucks, and vans against loss, damage, and third-party liability. Business Interruption insurance protects revenues and profits from interruption caused by property damage or destruction. Comprehensive General Liability insurance covers third-party liability arising from bodily injury, including death, and property damage due to accidents related to business operations or negligence. Bonds/Surety insurance is also available.

Business operations include contractor or project failure guarantee, which ensures that work is completed in accordance with contract terms and conditions. This also encompasses other bond types like bid bond and judicial bond. Personal accident insurance covers oneself and loved ones in case of losses resulting from fire, explosion, or natural disasters like earthquakes and typhoons. Travel insurance covers medical expenses or related costs caused by accidents or illnesses during trips, including expenses for trip delays, cancellations, and lost baggage.

COST: In terms of insurance costs, our advantage lies in economies of scale. As the largest Filipino-owned insurance broker in the country, we utilize our size and the resources of our parent companies BDO and the SM Group to negotiate the best terms and competitive rates for our clients. We can leverage our existing portfolio of business to benefit your company when placing it with insurers.

As we utilize the same insurers for our entire business, insurance companies serve as a significant source of revenue for us. Consequently, they can be influenced to enhance the terms and conditions, including premium levels, to benefit our clients. Due to our ability to approach multiple insurers, we typically exceed the rates offered by a direct insurer. Envision a scenario where the client’s solitary insurer is competing against the 10, 20, or 30 insurers that we have access to.

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BDO Insurance Brokers, Inc. – a Case Study. (2016, Nov 16). Retrieved from

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