More Filipinos purchased insurance products as the country’s insurance penetration rate improved to 1.89 percent in the first quarter this year from 1.78 percent in the same period in 2024.

However, this was still lower than the global rate of over 6 percent based on data from the European Union-Association of Southeast Asian Nations Business Council.

The Insurance Commission said the penetration rate indicates the growth of insurance premiums paid by clients compared to the country’s gross domestic product (GDP). Thus, a higher penetration rate means more people are insured.

“The increase in insurance penetration is due to the faster growth in premiums than the GDP expansion of 7.8 percent at current prices during this review period,” said Insurance Commissioner Reynaldo Regalado.

He said the country’s insurance density also improved by 13.4 percent, reflecting insurance premium expense of each Filipino at P1,094.94 from P965.56.

More developed insurance sector

This means Filipinos obtained more protection products for life, non-life assets, or both. Thus, insurance firms said a higher insurance density also indicates that the country’s insurance industry has become more developed, offering the public a range of sophisticated and comprehensive insurance products.

“The growth in insurance density was mainly driven by a rise in Total Premiums that exceeded the population growth rate of 0.87 percent during the same period,” Regalado said.

The government agency reported life insurers grew their total premium income by nearly 14 percent to P99.9 billion in the first quarter this year from P87.7 billion in the same period in 2024.

The growth was boosted by sales of variable life insurance which features investment funds for passive income. This insurance posted a premium increase of 54 percent, resulting in a 68 percent share of the total life premiums.

Meanwhile, non-life insurers increased their total premiums by 19 percent to P20.27 billion.

“The Commission expects this momentum to be carried throughout the remainder of the year,” he added.

According to Statista, a global market researcher, the insurance industry in Southeast Asia could grow by 3.5 percent annually until 2029.

Insurance firms attributed the optimistic forecast to the likely more enormous global population of individuals aged 80 and older, which is seen to triple by 2050, according to a study by consulting firm Accenture.

“Innovative products and services could help insurers better serve seniors,” the firm said.