The insurance landscape in the Philippines is experiencing a period of robust expansion, largely fueled by a surge in life insurance adoption. Industry leaders predict this positive trajectory will continue throughout the year, reflecting a growing awareness among Filipinos of the importance of financial protection.
Recent data reveals a significant increase in insurance penetration – the ratio of premiums to the nation’s economic output – rising to 1.78% last year. This marks a notable climb from the previous year’s 1.67%, demonstrating a deepening commitment to insurance as a financial safeguard.
This growth isn’t just about broader coverage; it’s also about increased individual investment. The average Filipino now spends P4,384.56 annually on insurance, an all-time high compared to P3,894.03 the year before. This signifies a tangible shift in financial priorities.
While life insurance currently dominates the market, accounting for 80% of total premiums, attention is turning towards expanding coverage in the non-life sector. This is particularly crucial given the country’s vulnerability to natural disasters, which presented challenges last year.
Combined premiums across life and non-life insurance, along with mutual benefit associations, reached P499.23 billion last year. This substantial figure underscores the industry’s vital role in bolstering the financial security of families and businesses.
The life insurance sector itself experienced a remarkable 14.54% year-on-year increase in premium income, reaching P403.21 billion. This sector’s contribution to overall industry growth is substantial, accounting for 1.44% of the total 1.78% insurance penetration rate.
The financial health of life insurance companies is also strengthening. Total assets grew to P2.09 trillion, an 8.54% increase, while net worth rose by an impressive 10.58% to P310.72 billion. This demonstrates a solid foundation for continued growth and stability.
Beyond financial gains, the industry is actively fulfilling its core purpose: providing a safety net. Life insurance companies disbursed P121.88 billion in benefits last year, offering crucial support to policyholders and their families during times of need.
Net income for the sector also saw a healthy increase, climbing 15.11% to P46.32 billion. This positive momentum is expected to continue into the new year, driven by ongoing efforts to enhance financial literacy and broaden access to insurance for all Filipinos.
