How can insurers make long-term protection a bigger priority for Filipinos?

Four in 10 middle-income Filipinos are not prioritising long-term financial security.

Philippine insurance premiums continued to rise in the second quarter, but many middle-income Filipinos remain focused on day-to-day expenses rather than long-term financial protection.

Only 56% of middle-income Filipinos consider securing their family's long-term financial future a priority, whilst 52% are actively building an emergency fund, according to an August report by FWD Life Insurance Philippines, Inc.

“The Philippines' transition to upper-middle-income status is a significant achievement, but it also raises the bar for how we define progress,” FWD Life Insurance Philippines President and CEO Soon Liang Lau said in the report.

The survey found that 74% of respondents cited rising everyday expenses as their biggest financial concern. Only 45% said they were working towards financial independence, whilst the same proportion were saving for their children's education.

The findings come as the Philippine insurance industry records stronger premium growth.

Insurance Commission data released on 22 August showed insurance penetration, or premiums as a share of gross domestic product, rose to 1.96% in the second quarter from 1.8% a year earlier.

Combined premiums collected by life insurers, nonlife insurers, and mutual benefit associations increased 16.2% to $4.5b (P282.9b). Life insurance premiums rose 17.9% to $3.7b (P230b), whilst nonlife premiums increased 10% to $710m (P44.2b).

Average insurance spending per person climbed 15.2% to $39.65 (P2,468.60).

The industry paid $1.5b (P90.9b) in benefits during the quarter, up 16.7% from a year earlier and more than double the first-quarter level.

Despite the growth, the survey suggests many households are finding it difficult to balance present-day expenses with future financial needs.

"Financial confidence is not about being wealthy," Lau said. "It's about feeling prepared. It comes from knowing you can manage today's responsibilities whilst continuing to make meaningful progress toward your future goals."

Philippine insurance penetration was about 1.9% of gross domestic product in 2025, below Malaysia's 3.7%, India's 3.8%, China's 4.4%, and Thailand's 5.1%, according to a June report by Allianz Research.

Allianz expects Philippine property and casualty premiums to grow by an average 8.5% annually from 2026 to 2036, whilst life insurance premiums are projected to expand 10% a year.

Questions to ponder:

• How can insurers increase coverage without adding pressure to household budgets?
• Why are more Filipinos building emergency funds than buying long-term protection?