Penetration tops 2% as insurance premiums rise

THE INSURANCE INDUSTRY posted higher premium income in the first quarter as insurance penetration breached the 2% level for the first time in five years, according to the Insurance Commission.

“Amid prevailing economic challenges, the insurance industry remains firmly positioned to meet policyholder needs and deliver on its commitments with stability and resilience,” Insurance Commissioner Reynaldo A. Regalado said in a statement.

The industry’s combined premium income rose to P140.85 billion in the January-to-March period from P124.48 billion a year earlier, based on preliminary data from the regulator.

Insurance penetration, or the ratio of insurance premiums to gross domestic product, stood at 2.03% as of end-March, matching the level recorded in the third quarter of 2021.

Insurance density, which measures average insurance spending per person, also increased to P1,231.61.

Meanwhile, the industry’s net income slipped by 1.75% in the first quarter due to higher benefit payments. Total benefit payments climbed to P43.44 billion from P39.01 billion a year earlier.

Despite the decline in earnings, the sector’s financial position improved, with total assets expanding to P2.65 trillion from P2.48 trillion a year earlier.

Total invested assets likewise increased to P2.37 trillion from P2.19 trillion. — Aaron Michael C. Sy