by Roulee Jane F. Calayag

Looking back at the punishing trail of desolation that the global financial storm brought about, insurers, bankers and government leaders have so much to learn.

Now that the crisis, which almost threatened to cripple some economic giants, started to wane, lessons abound for financial circles.

But what could possibly be the moving lessons from the financial crisis?

More than anything, it points to a deeper need for every industry player to be prepared always in turning adversity into opportunity.

In the case of life insurance, Asia-a region which accounts for a relatively small share of global insurance premiums but whose industry stature has grown increasingly important because of its rapid growth, has shown during the crisis how it is to be prepared.

While there were sporadic knee-jerk reactions among life insurers in some parts of Asia, majority of the industry players-prepared for the worst, stood their ground and gloriously turned the adversity into opportunity.

A case in point: our Company-Pru Life UK. Not exempted from the harrowing media reports on the performance of the life insurance industry-exacerbated by the pre-need fiasco that hounded the nation, Pru Life UK persevered and stood its ground amid the crisis, even mustering the courage to launch several products tailored for the changing needs of its policyholders.

The result: Pru Life UK remained one of the top trusted life insurers in the Philippines, widening its reach to include new branches in the provinces and other remote areas, despite the unexpected crisis.

Indeed, Pru Life UK and the rest of the local life insurers are continuously evolving, in response to the crisis, in a way that casts them in a different light-as beacons of hope that are ready to step up to the challenge of delivering quality insurance and investment products designed to meet the sophisticated and discerning standards of policyholders.

Last April, Sheela Suppiah Raj, General Manager of Asia Insurance Review and MiddleEast Insurance Rev, wrote: "The recent tumultuous financial market events are a poignant reminder that insurance companies have exposures that extend well beyond the risks assumed from their insurance policies. What initially began as a ripple has escalated to a global tsunami and resulted in a dramatic change in the financial services landscape, as well as the competitive dynamics of the financial services industry."

Ms. Raj added that the call of the time for the industry is to "do the necessary due diligence, especially to protect assets and their capital base, maintain liquidity, and mitigate risk exposures in this unprecedented economic climate".

Those were the same things that Ernst & Young, a global leader in assurance, tax, transaction and advisory services, cited in its January 2009 report titled "2009 insurance outlook-Far East".

"The expansion of western European and US insurance companies into Asia will continue but at a slower pace, and some multinationals will divest Asian operations to raise capital, creating opportunities for other brave or heavily committed domestic and multinational insurers," Ernst & Young reported.

The firm cited the following steps that life insurers in the region must take to change the tide: a) mitigate risks and seize opportunities; b) strengthen balance sheets and capital adequacy; c) expand markets and distribution; d) access new market segments; and e) monitor operating efficiencies and expense control.

"The prognosis for the life insurance sector in 2009 is a rocky one. Multinationals such as Prudential plc, Aviva, Manulife, Sun Life, prudential (US), MetLife, Axa and Allianz are continuing to expand in Asia, but a shortage of capital could restrain their growth. As consumers shift from unit-linked to more traditional products, the demand is for long-term investment offerings with guarantees," Ernst & Young said.

All that said, the undisputed 160 years of service of our parent, Prudential plc in London, will stand Pru Life UK and its regional overseer, Prudential Corporation Asia (PCA), in good stead.

Outgoing Group Chief Executive Mark Edward Tucker, Group Chief Executive Designate Tidjane Thiam, and Prudential Corporation Asia Chief Executive Barry Stowe each reiterated in separate occasions that the Philippines, and Asia, in general, are important to Prudential plc's operations.

The top bosses have seen that despite its size, Asia is undaunted and is prepared to turn the tide around.