Better economic prospects to boost general insurance

MANILA, Philippines — The country’s general insurance sector is projected to expand by 14 percent and hit P145 billion this year largely on better economic prospects.

In a report, UK-based data and analytics firm GlobalData said general insurance in terms of gross written premiums (GWP) could reach P145.4 billion this year, up 14 percent from last year’s by P127.5 billion.

This will be supported by strong economic growth, uptake in the construction sector and the country’s exposure to natural catastrophic events.

GlobalData insurance analyst Sutirtha Dutta said growth drivers from 2023 including automobiles, construction and financial services are expected to remain this year.

“The initiatives by the government to improve financial literacy, through financial inclusion have also supported the general insurance growth. The trend is expected to continue in 2024,” Dutta said.

Over the next four years, the industry is seen growing at an annual rate of 9.5 percent to hit P209 billion by 2028.

For 2024, property insurance will lead the industry and account for 42 percent of total GWP, supported by rising demand for policies covering natural catastrophic events.

Data showed that major natural disasters in the country have affected 12 million people and accounted for P23.2 billion in total losses last year.

Dutta said the initiative of the government to expand crop insurance and encourage financial inclusion will support the general insurance growth.

The Philippine Crop Insurance Corp. also inked an agreement with CARD Pioneer Microinsurance Inc. to further expand crop insurance.

“This is the first step toward public-private partnership in agriculture insurance in the country, which will support the growth of property insurance until 2028,” Dutta said.

GlobalData likewise revealed that motor insurance is the second largest line that is expected to account for 24.5 percent share of GWP in 2024.