IC: 41.4 million Filipinos covered by micro insurance in 1st half of 2021

Insurance Commission

MANILA, Philippines—The number of Filipinos covered by micro insurance rose year-on-year to 41.4 million in the first half of 2021 after sales of the non-life sector recovered during the second quarter.

The latest Insurance Commission (IC) data on Wednesday (Nov. 10) showed that the number of insured Filipinos by affordable micro insurance increased 4.5 percent from 39.7 million during the first six months of 2020.

Across the life, non-life and mutual benefit association (MBA) sectors, micro insurance contributions and premium production grew 34.1 percent to P4.7 billion from P3.5 billion in 2020.

During the first half, MBAs’ micro insurance sales jumped 37.8 percent year-on-year to P2.9 billion. Life insurers’ sales climbed 34.2 percent to P1.4 billion.

Non-life insurance firms saw their micro insurance sales revert to 15.2-percent growth to P466.5 million at the end of the first six months of 2021.

First-quarter data released by the IC in October showed non-life insurance companies’ sales declined 6.3 percent year-on-year during the January-to-March period.

The lower first-quarter non-life micro insurance sales slashed total end-March population coverage to 46.9 million Filipinos from 48.2 million covered in 2020.

The number of Filipinos covered by micro insurance fluctuates as these relatively cheaper coverage have shorter and seasonal terms.

As of end-June, 23 MBAs, 10 life, and 12 non-life insurers sold micro insurance, the latest IC data showed.

Last year, as many as 50.4 million Filipinos were covered by micro insurance products, achieving the government’s target to hit 50-million coverage in 2022 by two years earlier.

TSB