Philippine’s premiums jump 14% in Q3 2024

It bagged $5.58b during the quarter.

The Philippines saw its insurance density record a 12.44% increase for the quarter ending 30 September (Q3 2024), rising to $49.47 (₱2,910.10) from $43.99 (₱2,588.05) in Q3 2023, revealed the Insurance Commission.

Insurance density, which reflects the average spending on insurance per individual, grew due to a significant rise in total industry premiums, which outpaced the population growth of 0.89% during the period.

Total industry premiums, encompassing life and non-life insurers and mutual benefit associations (MBAs), increased by 13.45% year-on-year (YoY), reaching $5.58b (₱328.55b) in Q3 2024, compared to $4.92b (₱289.60b) in Q3 2023.

In contrast, total benefits paid declined by 6.55%, dropping to $1.54b (₱90.64b) from $1.65b (₱96.99b) in the same period last year. Net income rose by 4.23%, growing to $0.68b (₱39.93b) from $0.65b (₱38.31b) in Q3 2023.

Insurance Commissioner Reynaldo A. Regalado attributed these trends to the industry's ability to expand its customer base and manage claims effectively, ensuring financial stability.

Insurance penetration, the ratio of premiums to GDP, marginally increased to 1.74% in Q3 2024 from 1.68% in Q3 2023.

Whilst GDP (at current prices) grew by 9.21% YoY, the premium growth rate outpaced this, indicating stronger expansion within the insurance sector.

The industry's combined assets grew by 12.13%, reaching $42.50b (₱2.50t) in Q3 2024 from $37.91b (₱2.23t) in Q3 2023.

Invested assets rose by 13.75% to $38.42b (₱2.26t), while total liabilities increased by 13.26%, reaching $34.34b (₱2.02t).

($1.00 = ₱58.94)