Insurance penetration hit 2% goal in first quarter
Insurance penetration in the Philippines finally hit the 2-percent target in the first quarter of 2026 as the industry recorded stronger premium growth, according to preliminary data from the Insurance Commission (IC).
In a statement, the regulator said insurance penetration, or the ratio of insurance premiums to gross domestic product, rose to 2.03 percent from 1.89 percent in the same period last year.
Insurance density, which measures average spending on insurance per individual, jumped 12.5 percent to P1,231.61 from P1,094.94 a year earlier.
This came as the industry posted higher premium collections, which rose 13 percent to P140.85 billion.
“Amid prevailing economic challenges, the insurance industry remains firmly positioned to meet policyholder needs and deliver on its commitments with stability and resilience,” Insurance Commissioner Reynaldo Regalado said.
The insurance penetration level had long been a target of the IC, with Regalado in February saying it has been a challenge to expand coverage due to gaps that still need to be addressed.
However, benefit payments still outpaced gains, rising 11 percent to P43.44 billion. This pulled the industry’s net income slightly lower, down 1.75 percent to about P15.03 billion.
Total assets, meanwhile, grew nearly 7 percent to P2.65 trillion, while total invested assets increased about 8 percent to P2.37 trillion, providing the industry with a stronger buffer to meet obligations.
Looking ahead, the insurance industry may face some headwinds as the oil shock from the Middle East conflict dampens household spending and curbs discretionary demand for other consumer goods.
Last Thursday, the IC ordered insurance companies, mutual benefit associations, pre-need firms and health maintenance organizations to adopt at least three relief measures for policyholders. These include grace periods and extensions of up to 90 days.
The measures will allow leniency on payment of premiums, contributions and other obligations to prevent unintended policy lapses and ensure continuity of coverage, especially for life and health policies.
