Insurers mark banner year

MANILA, Philippines - The insurance industry marked a new record year in terms of premium income and contributions.

According to the Insurance Commission (IC), total premium income by insurers hit a fresh record of P233 billion, 17.67 percent more than the previous all-time record of P198 billion in 2013.

IC commissioner Emmanuel F. Dooc said both the life and non-life insurance sectors continued their upward trajectory.

“It is better than any time in the history of the Philippine insurance industry,” Dooc said during the induction ceremonies of the Philippine Life Insurance Association (PLIA) yesterday.

Ranged against the 2014 premium income of P189 billion, last year’s record is an improvement of 23.93 percent.

Dooc noted the strong economy and the absence of major natural catastrophes, worked in favor of the industry’s growth.

For the life insurance sector, premium income ballooned 18.78 percent from P158.7 billion in 2014 to P188.5 billion last year.

For the non-life sector, net premiums written reached a record P37.3 billion in 2015, roughly 58 percent more than the previous year’s P23.6 billion.

“In fact, the non-life sector hit a record quarterly net premiums of P11 billion in the fourth quarter in 2015, compared to its five to 10 percent average quarterly growth,” Dooc said.

Initial computations also indicate the 2015 total premium income is equivalent to two percent of GDP.

“That is the first time in Philippine insurance history,” the commissioner said, estimating the insurance penetration rate may have surpassed 30 percent of the country’s 100-million population.

Of the total premium income of the life sector, 75 percent of new business came from the sale of variable unit linked (VUL) life insurance products, and 25 percent from traditional or pure protection life insurance.