The uncertainties and limited economic activity during the COVID-19 pandemic in 2020 changed the perspective of consumers in the Philippines when it comes to insurance. This, and the availability of newer insurance coverage with pre-existing needs or those with a medical condition, resulted in the growing share of the GDP contribution of the insurance industry, especially in 2021. The Philippine insurance sector is regulated by the Insurance Commission, which aims to establish a strong national insurance market.
Insurance landscape in the Philippines
The insurance industry in the Philippines is varied and comprehensive, with plans ranging from life to non-life, pre-need, and micro and macro insurances. Between insurance types, life insurance has a higher insurance density, reflecting increasing premium income generated. In 2022, the leading life insurance companies in terms of premium income were Sun Life of Canada (Philippines) and Pru Life Insurance Corporation of UK. Meanwhile, for non-life insurance, which covers auto, health, business, and home insurance, the market leaders were Malayan Insurance and Pioneer Insurance & Surety Corporation.
Since getting insurance coverage could mean additional expenses, Filipinos belonging to low-income households could turn to cheaper insurance products known as microinsurance. Microinsurance policies in the Philippines were mostly written by the Mutual Benefits Association (MBA). Paying sick benefits and furnishing financial support to MBA members while out of employment were two of the associations’ provisions. Preliminary figures suggest that the Mutual Benefits Associations (MBAs) issued premiums worth approximately 14 billion Philippine pesos for covering microinsurance needs. In addition, the Universal Health Care (UHC) Act has also automatically enrolled all Filipinos in public health insurance ensuring them accessible and affordable healthcare coverage.
Gearing towards insurance coverage for all
Considering the COVID-19 pandemic and recent calamities in the Philippines, insurance is now more necessary than ever. Filipinos have increasingly recognized the risks of a lack of security in cases of death, unforeseen accidents, and hospitalization costs from illnesses. To provide for the insurance needs of its citizens, the government offers several social insurance programs for both public and private employees, voluntary members, and overseas Filipinos. This covers a comprehensive list of benefits, including maternity, retirement, and death subsidies, as well as general insurance coverage. Selected private insurance companies have also started offering flexible insurance policies, with some including built-in investments, that will further encourage Filipinos to be insured.
