Microinsurance gaining market share
The value of microinsurance premiums collected in the Philippines jumped by 15 percent in the first quarter to P2.65 billion from P2.31 billion in 2021, according to the Insurance Commission (IC).
This was from the unaudited Quarterly Reports on Selected Financial Statistics (“QRSFS”) based on data submitted by microinsurance providers, mainly mutual benefit associations (MBAs) but also life and nonlife insurance companies.
“It is likely that the continued relaxation of community quarantine protocols, taken together with the increasing awareness of the public of the importance of having affordable insurance products, led to the [first-quarter] increase in premium or contribution production,” IC Commissioner Dennis Funa said in a statement.
“We have also observed that the lingering adverse economic impact of the pandemic at the micro level may have contributed to this increase, as those who availed microfinance or credit transactions were able to avail of the bundled microinsurance products,” he added.
MBAs contributed P1.57 billion or 59 percent of the total premiums while life and nonlife insurance firms accounted for 28.3 percent and 12.53 percent, respectively—or P749.96 million and P332.38 million.
In the January-March quarter, microinsurance providers collected premiums on an estimated 44.81 million life insurance policies.
However, the total number of estimated insured lives by microinsurance products contracted by 4.60 percent from 46.97 million.
Similar to the share in collections, MBAs accounted for 57 percent of the market or 25.7 million insured lives. Life insurers had 33 percent or 14.95 million and nonlife insurers—which are allowed to sell life microinsurance products—had 9 percent or 4.12 million.
During the quarter, there were 23 MBAs, 11 life insurers and 14 nonlife insurers that were actively engaged in providing microinsurance products.
Of the three segments, nonlife insurers saw a 39-percent jump in microinsurance premium collection, to P332.4 million from P239.2 million.
MBAs also enjoyed double-digit growth at 14.6 percent to P1.57 billion from P1.37 billion. Life insurers recorded a 7.2 percent increase to P749.96 million from P699.45 million.
