Insurance as gauge of economy: Sales down by 2.6%

Insurance sales sales fell 2.6 percent to P141.9 billion in the first half of 2019 as the dark horizons of the global economy put off consumers from buying insurance products, according to the Insurance Commission.

Data released by the commission on Thursday showed that industry premiums as of last June were lower than P145.8 billion reported by life and non-life insurance firms in the same six-month period in 2018.

Insurance Commissioner Dennis B. Funa said the decline in sales is attributable ultimately to “global market uncertainty and economic slowdown.”

He said although first year and renewed premiums in “variable life products” increased 11.7 percent and 32 percent, the decline in single premium was 52.5 percent from P43.2 billion in 2018 to less than half, or P20.5 billion in 2019./TSB