Life and non-life insurers and mutual benefit associations grew premiums to P440.39 billion in the fourth quarter of 2024, a report from the Insurance Commission (IC) revealed Wednesday.
IC Commissioner Reynaldo Regalado said this was higher than the P390.39 billion recorded in the same period of 2023.
However, the insurance premiums remained a relatively weaker contributor to economic growth or the country’s gross domestic product, with a slightly higher insurance penetration rate of 1.67 percent from 1.61 percent.
Nevertheless, Filipinos average insurance spending grew to P3,892.77 from P3,457.84.
Specifically, life insurance firms posted nearly six percent growth in new business annual premium equivalent, the global standard for measuring insurance sales, to P67.49 billion.
The total premium income reached P352 billion or about 14 percent growth year-on-year.
Premiums from variable life insurance which distributes some funds into investments accounted for 65 percent of the total premiums, while the rest represented traditional life insurance.
Life insurers’ total net income rose by 20 percent to P40.23 billion, despite a faster rise in benefit payments at 22 percent.
Meanwhile, non-life insurers’ net premiums written grew by 10.5 percent to P71.84 billion.
Motor insurance accounted for the biggest premiums, with 40 percent of the total premiums but a slight 6 percent growth. This was followed by fire insurance premiums which grew by 12 percent and represented 16 percent of all premiums.
Accordingly, total net worth inched up by 3.35 percent to P134.3 billion. Global market researcher Statista projects the local insurance market to expand to over $17 billion this year as Filipinos’ incomes rise.
Mutual benefit associations’ total assets also grew by 10 percent to P163.6 billion.
Total invested assets jumped by 13 percent to P152.54 billion as the associations directed P75.72 billion to long-term bonds and P47.82 billion to loans.
Total liabilities rose by 9.4 percent to P96.3 billion.