DOF: Insurance industry premiums grow 64.3% under Duterte admin

The Philippine insurance industry saw a 64.3% growth under the Duterte administration, the Department of Finance (DOF) said Wednesday.

Citing data from the Insurance Commission (IC), the DOF said the total gross premiums of the insurance industry grew from P169.6 billion in the third quarter of 2016 to P278.7 billion in the same period of 2021.

Quoting Insurance Commissioner Dennis Funa, the Finance department reported that the industry’s total net income increased 64.1% from P22.85 billion by end-September 2016 to P37.5 billion in the same period last year, “another indicator of the insurance sector’s continuous and steady expansion under the Duterte presidency.”

The insurance industry’s contribution to the economy also grew from 1.64% of the gross domestic product (GDP) in 2017 to 2.03% of the country’s GDP as of the third quarter of 2021.

The insurance density or the average amount spent by every Filipino for insurance is at P2,528 as of the third quarter of 2021 from P1,768 in the same period in 2017, according to the DOF.

“For 2021, I see a record insurance density figure, especially with people becoming more conscious of the benefits of insurance, especially after the peak of the COVID pandemic in 2020,” said Funa.

“This pandemic has just brought to people’s attention the risks in life and the realization that livelihoods can be wiped out in a flash,” said Finance Secretary Carlos Dominguez.

The Insurance commissioner said the industry only saw a “slight dip” in both premiums earned and net income generated in 2020, the year when the coronavirus pandemic hobbled, if not shut down, most economies across the globe.

Gross premiums earned by the industry fell from P224.98 billion in 2019 to P216.51 billion in 2020, while net income dropped from P31.74 billion in 2019 to P28.62 billion in 2020, said Funa.

The Insurance commissioner said that while the total assets of the insurance industry grew 8.11% in 2020 and  total investments increased 6.97%, its total net worth and the total net income dropped during that year.

“The net worth of the industry decreased by 3.88% and the total net income decreased by 8.6%. This is due primarily to the life insurance sector, which was impacted more by the COVID pandemic,” he said.

Funa said 22 out of 31 life insurance companies registered a net investment loss ranging from P238,000 to P1.5 billion, while 20 out of 31 life insurance companies suffered a decrease in their 2020 net income.

“However, in spite of all these, our 3rd quarter figures for last year show a strong rebound,” he said.

Funa said the insurance industry’s total investments were not affected by the economic shock triggered by the pandemic as seen from its 56.3% growth from P1.14 trillion in the third quarter of 2016 to P1.78 trillion in the same period last year.

The industry’s total investments only fell slightly from P1.58 trillion in 2019 to P1.56 trillion in 2020, he said.

In terms of total assets, Funa said the industry recorded P2.01 trillion in assets as of the third quarter of 2021, up by 52.4% from P1.32 trillion in the same period in 2016.—AOL, GMA News