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April 12, 2024

Morbidity study to set benchmarks for fair insurance premiums

The Philippines government, in collaboration with the Insurance Commission (IC) and the Actuarial Society of the Philippines (ASP), is initiating the nation’s first morbidity study.

The study, drawing on the claims experience of health maintenance organizations (HMOs) and insurance companies, aims to establish benchmarks for fair premium rates, reserve valuations, and capitalization requirements.

The IC said the study aims to promote a robust health insurance market, encourage innovation, attract foreign investments, and bridge the health protection gap among Filipinos.

The estimated protection gap in the Philippines is P24 trillion, hindering financial security due to cost, limited access, and lack of financial education.

Data showed that as of the first quarter of 2023, the country’s insurance penetration rate dropped to 1.75% of the GDP, trailing behind ASEAN neighbors like Thailand and Indonesia.