Insurers shell out P 1.98B in COVID-related claims

Insurers in the Philippines have paid out customers who got infected with COVID-19 or were impacted by the pandemic a total of P1.98 billion in claims as of end-September last year, the Insurance Commission (IC) said on Tuesday.

In a statement, the IC said 68 insurers across the life, non-life, mutual benefit association (MBA) and health maintenance organization (HMO) sectors received claims related to COVID-19 during the first nine months of 2019.

Of the total payouts, P1.81 billion were insurers’ contractual obligations while P284.43 million were “ex gratia” payments or given as a favor to clients amid the health and socioeconomic crises inflicted by the COVID-19 pandemic.

The HMO sector had the biggest claims amounting to P1.09 billion, followed by life insurers (P739.83 million), MBAs (P219.63 million) and non-life insurance companies (P41.71 million).

Per type of benefit, the biggest claims were for out-patient expenses at P637.92 million.

Claims for in-patient benefits amounted to P588 million, while death benefits reached P553.31 million.

Insurers also settled COVID-19-related claims for benefits covering critical illness, hospital income, hospitalization allowance, medical reimbursement, personal accident and travel, among others.

For Insurance Commissioner Dennis Funa, the ability of insurers to pay out nearly P2 billion in claims related to COVID-19 was a “clear testament of financial resiliency notwithstanding the challenges posed by the pandemic.”

“Such financial resiliency is amplified by the fact that some regulated entities have even gone above and beyond their contractual obligations by paying ‘ex gratia’ settlements to our fellow Filipinos,” Funa said. —Ben O. de Vera INQ