In the nine months leading to September, the Philippines experienced a decline in the insurance penetration rate from 1.81 percent to 1.68 percent, primarily attributed to creeping inflation affecting consumer budgets, according to data released by the Insurance Commission.
Despite a modest 2.77 percent year-on-year growth in total premiums, amounting to P289.603 billion, the insurance industry’s performance trailed behind the country’s economic growth.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort linked the drop to higher prices impacting Filipinos’ spending priorities, especially for those with limited budgets.
However, Ricafort anticipates a potential rebound in insurance demand with the recent easing trend in inflation and improved economic conditions.
The Insurance Commission disclosed that the industry’s net income rose by 9.37 percent to P38.28 billion from January to September, driven by expanding premiums collected by life and non-life insurance firms, outpacing the decline in the net income of mutual benefit associations.
