Philippines among insurance leaders in Asean

MANILA, Philippines – The Philippines emerged as one of the top three growth spots in the Southeast Asian region in terms of insurance premium, data from the Asean Insurance Council (AIC) showed.

Based on AIC’s 2016 Asean Insurance Statistical Report, Cambodia, Vietnam and the Philippines showed the fastest growth in gross premiums at 38.4 percent, 22.6 percent and 10.9 percent, respectively.

Singapore, Thailand and Malaysia meanwhile, were identified as the most developed insurance markets in the region, contributing 33 percent, 23 percent and 21 percent of the total premiums, respectively.

Total gross written premiums in the Asean region reached $96.3 billion in 2015, 2.9 percent higher year-on-year.

Insurance penetration also climbed 40 basis points to 3.8 percent last year, as compared to 3.4 percent in 2014.

For the Philippines alone, the penetration rate stood at 1.89 percent, higher than the previous year’s 1.75 percent.

The life insurance sector in the Asean saw a 3.9 percent increase in net written premiums in 2015 at $68.7 billion. The top three contributors in this sector were Singapore at 32.4 percent; Malaysia, 22.9 percent; and Thailand, 22.1 percent.

Cambodia almost tripled its premium from life insurance products, while Vietnam and the Philippines posted 30.1 percent and 13.5 percent growth in life insurance premiums, respectively.

Likewise, the general insurance market also showed improvement with a 2.9 percent rise in gross written premiums.

The growth was led by Singapore, which accounted for 33.3 percent of the total general insurance premiums, followed by Thailand and Indonesia at 24.3 percent and 15.4 percent. Cambodia, Vietnam and Malaysia also posted the biggest growth in written premiums, while the Philippines only grew at 4.27 percent.

“The insurance industry represents high stability and long-term commitment, and can play an essential role in supporting and sustaining our region’s economic growth,” AIC secretary general Evelina Pietruschka said.

“The overall Asean gross written premiums has a compounded annual growth rate of 5.8 percent from 2012 to 2015, indicating the industry’s stable growth and potential, despite the ups and downs of various markets and sectors in our region.“

However, the secretary general added that contributions of insurance to gross development product vary in the region.

“This means there is considerable potential for future growth, and through greater collaboration and communications across markets, we aim to position the insurance industry to play a greater role in AEC,” she added.

Pietruschka noted that some Asean countries, such as Singapore and Thailand reached an insurance penetration rate comparable to mature markets like the US and Europe.

But the total penetration rate in the region, which stood at 3.8 percent, still signifies there is much room for growth, she said.