Insurance penetration improves to 1.71% of GDP
![Insurance penetration improves to 1.71% of GDP](https://media.philstar.com/photos/2024/08/20/a813_2024-08-20_18-23-44.jpg)
MANILA, Philippines — The insurance industry saw its net income rise to P28 billion in the first half amid increases in the life and non-life segments with the sector’s contribution to the overall economy also improving to 1.71 percent.
Data from the Insurance Commission showed that the net income of the sector grew by 24 percent to P27.78 billion from January to June compared to last year’s P22.39 billion.
As such, insurance density or the average spending of an individual on insurance went up by 14 percent to P1,907.19 from P1,667.50.
In turn, the share of the sector to the country’s gross domestic product (GDP) also improved to 1.71 percent in the first half from 1.63 percent last year.
Broken down, the life insurance segment registered a 24-percent increase in net income to P19.91 billion from P16.37 billion in 2023, driven by the 17-percent increment to P174.14 billion in premium collection as both variable unit life (VUL) insurance policies and traditional life insurance posted growth.
Premiums paid under VUL policies amounted to P113.19 billion while premiums paid under traditional life insurance reached P60.94 billion.
Similarly, investments inched up by two percent to P1.73 trillion while assets went up by seven percent to P1.85 trillion.
The life segment managed to grow during the first half even with a 30-percent hike in benefit payments to P61.11 billion.
On the other hand, the non-life insurance segment’s net income jumped by 37 percent to P4.98 billion from P3.64 billion following growth in total premiums earned at P30.74 billion.
Investments for the non-life segment inched up by four percent to P174.83 billion.
Assets, however, were flat at P356.8 billion, mainly placed on debt securities in both government and private sector, time deposits, investment property, mutual funds and real estate investment trusts, among others.
Further, the IC reported that mutual benefit associations (MBAs) increased their premiums by four percent to P7.91 billion while expenses also grew by seven percent to P3.73 billion.
Overall, the segment saw its net surplus climb up by 21.6 percent to P2.89 billion.
Combined, total assets of the three segments improved by six percent to P2.36 trillion in the six-month period while total benefits paid rose by 24 percent to P76.67 billion.
The first quarter insurance data came from the submissions of 126 out of the 131 licensed insurers and MBAs.
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