March 21, 2023

IC reports P7.11 billion loss for pre-need sector in Q3 2022

The Insurance Commission (IC) said that the pre-need industry incurred a net loss of P7.11 billion as of the third quarter of 2022, with 75 percent of firms reporting declines during the period.

According to the most recent statistics from IC, the industry’s losses from January to September 2022 offset the P1.23 billion gains during the same period in 2021.

This is despite the 2.44 percent increase in premiums sold as the demand for life plans increased.

In total, the industry sold 27 percent more pre-need plans compared to the same period in 2021, increasing to 530,925 from 416,775.

Life plans accounted for 99 percent of plans sold. The number of life plans sold also increased by 28 percent.

The rest were pension plans, which saw a 40 percent decline from 1,528 sold last year. Education plans also decreased by 42 percent to just 37.

Further, the IC highlighted that pre-need reserves marginally increased by 1.65 percent to P113.45 billion and investments in trust funds slightly decreased by two percent to P114.51 billion.

The latest figures covered a total of 16 firms, one less than the 17 reporting in 2021. Of these, 13 are licensed while three are servicing companies.

Net loss was incurred by 12 of the 16 firms reporting their financial status during the period. Only four companies declared profits: Golden Future Life Plan (P5.05 million) Cityplans Inc. (P1.34 million), Diamond Memorial Care Plans Inc. (P1.31 million), and Mercantile Care Plans Inc. (P630,000).