Philippine microinsurance soars to new heights with 17.35% growth
Philippine microinsurance soars to new heights with 17.35% growth | Insurance Business Asia
Insurance News
Philippine microinsurance soars to new heights with 17.35% growth
Performance of MBAs and life and non-life insurance companies unveiled
Insurance News
By
Roxanne Libatique
The microinsurance sector in the Philippines has reported significant growth in 2023, with total premiums amounting to PHP13.54 billion, reflecting a 17.35% increase compared to 2022.
According to the Philippine Insurance Commission (IC), the growth is attributed to increases across the board in all sectors, including Mutual Benefit Associations (MBAs), as well as life and non-life insurance companies.
Philippine microinsurance sector breakdown
Sector
Premium collection 2022
Premium collection 2023
Percentage increase
MBA
PHP6,753,359,492.00
PHP7,479,471,315.00
10.75%
Life
PHP3,200,986,482.00
PHP3,661,871,692.00
14.40%
Non-life
PHP1,580,064,306.00
PHP2,393,989,139.00
51.51%
At the end of 2023, the number of lives covered by microinsurance reached 56.62 million. MBAs insured the most lives, covering 28.6 million people, followed by life insurance with 15.64 million covered lives, and the non-life sector with 12.37 million lives insured.
Market share of Philippine microinsurance sector
MBAs maintained their position as the market leader, accounting for 55.26% of the premiums collected, totalling PHP7.48 billion.
Life insurance contributed 27.05%, or PHP3.66 billion, while the non-life sector accounted for 17.69%, or PHP2.39 billion.
Microinsurance offers financial protection to low-income individuals, covering risks such as death, injury, and property damage. Premiums are capped at 7.5% of the minimum wage in Metro Manila, making it an accessible option for many Filipinos.
In other news from the Philippines, the IC recently partnered with the Integrated Bar of the Philippines to offer free legal help to Filipinos navigating claims or disputes related to insurance, pre-need contracts, and Health Maintenance Organisation (HMO) services.
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