MANILA – The pool of insurance premiums in the Philippines is expected to grow by 11 percent yearly over the next 10 years until it reaches 22.6 billion euros in 2033, according to Allianz SE.
That yearly growth rate will outpace that of global expansion, penciled in at 5.2 percent, the Germany-based global group of insurers and asset managers said in a report.
Through the forecast period, the Philippines is also primed to outperform the entire Asia-Pacific region excluding Japan, particularly China (8.1 percent).
According to Allianz’ Global Insurance Report, the total global insurance premium income was about 5.6 trillion euros in 2022, rising by 4.9 percent from 5.4 trillion euros. Life continued to be the largest segment accounting for 46 percent of total premiums, followed by property and casualty or P&C (32 percent) and health (20).
Also last year, the Philippine insurance market grew by 5.2 percent with premium income reaching 7.1 billion euros.
The “rather modest” increase was weighed down by a 0.5-percent decrease in the life segment which remained nonetheless the biggest segment with 5.2 billion euros,” Allianz said.
The domestic P&C segment, on the other hand, surged by 24 percent to 1.9 billion euros. The Philippine market fared better than the “disappointing” 3.6-percent growth in Asia and the 4.9 percent worldwide.
“The challenges of the pandemic opened the eyes of many Filipinos to the importance of life and health protection and led to the increased purchase of insurance products,” Allianz PNB Life chief finance officer Fang Siong Chong said in a statement.
“Our Life Changers will continue to provide more education and guidance to our policyholders and the public on the benefits of being insured not only for themselves but for the economy as well,” he said.
In a separate statement, the Insurance Commission said the Philippine life insurance business saw its net income shrink in the first quarter this year by 13 percent to P6.5 billion from P7.46 billion in the same period last year.
The IC attributed the contraction to a 29-percent increase in “other expenses” and a 21-percent increase in general administrative expenses.
In the first quarter, the life insurance sector’s total premium income also slightly contracted by 0.47 percent to P78.24 billion from P78.61 billion. This, in turn, was attributed to a 33-percent decline in the collection of single premiums of variable life insurance products.
READ:
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