Insurance

Insurance industry premiums rise 64% under Duterte’s presidency

Insurance Commissioner Dennis Funa (File photo)

MANILA – The Philippine insurance industry has seen robust growth under the Duterte administration, with total gross premiums up 64.3% from PHP 169.6 billion in the third quarter of 2016 to PHP 278.7 billion of PHP in the same period in 2021, according to data from the Insurance Commission. (IC).

IC Commissioner Dennis Funa said the industry’s total net income increased by 64.1% from PHP 22.85 billion at the end of September 2016 to PHP 37.5 billion at the same time. period last year, another indicator of the continued and steady expansion of the insurance industry under President Duterte.

As for the contribution of the insurance industry to the economy, Funa said continuous improvement was visible over the past four years.

From 1.64% of gross domestic product (GDP) in 2017, he said the industry’s contribution to the economy had risen to 2.03% in the third quarter of last year.

“We will see the highest ever penetration rate reached at the end of 2020, and we see some bright numbers for 2021. I think the highest ever penetration rate will even be surpassed in 2021,” Funa said in his report to the finance secretary. Carlos Dominguez III.

Insurance density or the average amount spent by each Filipino on insurance is PHP 2,528 in the third quarter of 2021, compared to PHP 1,768 in the same period of 2017, he added.

For 2021, Funa said he sees a record number of insurance density as people become more aware of the benefits of insurance, especially after the peak of the coronavirus disease 2019 (Covid-19) pandemic. in 2020.

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

Dominguez thanked Funa and the three IC deputy commissioners – Erickson Balmes, Ferdinand George Florendo and Randy Escolango – for guiding the insurance industry down a path of rapid growth under the Duterte administration.

“We have made progress under this administration and under your leadership,” Dominguez told Funa.

Funa said the industry saw only a slight decline in premiums earned and net income generated in 2020, the year the outbreak of the coronavirus pandemic hampered, if not shut down, most economies in the world. world.

Gross premiums earned by the industry increased from PHP 224.98 billion in 2019 to PHP 216.51 billion in 2020, while net income increased from PHP 31.74 billion in 2019 to PHP 28.62 billion of PHP in 2020, he said.

Funa said that while the insurance sector’s total assets increased by 8.11% in 2020 and total investments increased by 6.97%, its total net worth and total net income fell over the course of 2020. This year.

“Industry net worth decreased by 3.88% and total net income decreased by 8.6%. Covid,” he added.

Funa said 22 out of 31 life insurance companies recorded a net investment loss ranging from PHP 238,000 to PHP 1.5 billion, while 20 out of 31 life insurance companies suffered a decline of their net profit in 2020.

“However, despite all of this, our numbers for the third quarter of last year show a strong rebound,” he said.

Funa said the insurance sector’s total investments were unaffected by the economic shock triggered by the pandemic, as evidenced by its growth of 56.3% from PHP 1.14 trillion in the third quarter. from 2016 to PHP 1.78 trillion at the same time last year.

Total industry investments decreased only slightly from PHP 1.58 trillion in 2019 to PHP 1.56 trillion in 2020, he said.

In terms of total assets, Funa said the industry recorded PHP 2.01 trillion in assets in the third quarter of 2021, up 52.4% from PHP 1.32 trillion at the same time. period in 2016. (PR)