Microinsurance contributions hit P13.5 billion in 2023

MANILA, Philippines —  The continued awareness of Filipinos due to the impacts of the pandemic boosted the insurance contributions from low-income people, reaching P13.5 billion in 2023.

Latest data released by the Insurance Commission (IC) showed that total premium from microinsurance providers went up by 17 percent to P13.54 billion in 2023 from the P11.53 billion in 2022.

The increase was driven by the higher premium collection across all sectors of life, non-life and mutual benefit associations (MBAs).

The number of lives insured under microinsurance products reached 56.62 million last year.

Microinsurance is specifically targeted to low-income households or those who have limited savings. It covers compensation for illness, accidents and death.

Many Filipinos who buy microinsurance are daily wage earners. The premiums should not be more than 7.5 percent of the current daily minimum wage in Metro Manila, computed on a daily basis.

Of the total premiums last year, MBAs covered the bulk at 55 percent worth P7.48 billion. This is an 11 percent growth from the P6.75 billion in 2022.

Life insurers also saw contributions improve by 14.4 percent to P3.66 billion, covering 27 percent of the total.

Non-life insurers, on the other hand, cornered the remaining 18 percent at P2.39 billion, jumping by more than 50 percent from the previous year’s   P1.58 billion.

Microinsurance products include micro pre-need, micro-life and health insurance and micro-agricultural insurance.

The IC has been promoting microinsurance among low-income earners, as a means to prepare for emergencies that can drain resources, such as deaths, injury and damage to property or livelihood.