The Insurance Commission (IC) of the Philippines commemorated its 76th Founding Anniversary, with the theme “Insurance Reimagined,” last 20 March in Makati City, reflecting a commitment to innovation and modernization in the insurance sector. Under the leadership of Commissioner Reynaldo A. Regalado, who is on his second year at the helm, the IC has made significant strides in enhancing the industry’s performance and addressing challenges.

Since Commissioner Regalado assumed office in 2023, the Philippine insurance industry has experienced notable growth. In 2024, the Philippine insurance industry demonstrated robust growth across several key performance indicators compared to 2023. The industry’s total premiums increased by 12.8 percent, reaching P440.39 billion in 2024, up from P390.39 billion in 2023.

Insurance penetration, defined as premiums as a percentage of GDP, improved to 1.67 percent in 2024 from 1.60 percent in 2023, indicating a growing contribution of the insurance sector to the national economy. The average insurance spending per individual increased by 12.44 percent in 2024, rising to P2,910 from P2,588 in 2023, suggesting a higher uptake of insurance products among Filipinos.

These figures underscore the Philippine insurance industry’s overall positive trajectory in 2024, marked by substantial growth in premiums, profitability, and consumer engagement compared to 2023.

The IC invited its government partners, particularly the Philippine Crop Insurance Corporation (PCIC), Development Bank of the Philippines (DBP), and the Office of Alternative Dispute Resolution under the Department of Justice (OADR), for the signing of significant MOUs.

Highlighted numerous times during the event was the ushering of Takaful insurance in the Philippines, with the IC approving the first Takaful product this year. Verily, the approval of Takaful insurance in the Philippines is a significant milestone for the country’s insurance industry for promoting financial inclusion and catering to the needs of the Muslim population in the Philippines that is estimated to be around 7 million.

Takaful insurance provides a Shariah-compliant alternative that aligns with Islamic beliefs. Encouraging insurance participation in BARMM and other Muslim-majority areas can stimulate economic growth by providing businesses and individuals with financial protection. Also, the approval of Takaful insurance complements other Islamic financial services in the country, such as Islamic banking, positioning the Philippines as a more attractive destination for Halal investments and potential partnerships with countries in the Middle East and Southeast Asia with strong Islamic finance sectors.

The Insurance Commission’s support for Takaful insurance signals the government’s commitment to inclusivity and adherence to international best practices in insurance regulation. It aligns with global trends where Islamic insurance is growing, especially in neighboring ASEAN countries like Malaysia and Indonesia, where Takaful is already well established.

Commissioner Regalado has been taking strides, laying the groundwork for continuous meaningful change in the industry. During the anniversary event, the IC made known that it is gearing for more innovation and adoption of technology towards its centenary year in 24 years, or on 2049. The Commissioner’s long-term vision is a breath of fresh air on what’s to come for the IC, as one speaker during the event quipped, this is “Insurance Rey-Imagined.”

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