From an initial report released by the Department of Finance (DOF), total premium income of the life insurance sector grew by a measly 3.26 percent or from P30.029 billion in 2001 to P31 billion last year.
It grew by 11.47 percent at end 2001, or from P26.933 billion in 2000 to P30.029 billion the year after. In 1999, premium income of the life sector was P22.403 billion while premiums reached P19.358 billion in 1998 for an annual growth rate of 15.72 percent.
This year, industry leaders expressed guarded optimism that the life sector would grow by another 10 percent assuming that the Iraq conflict would not last long and that some domestic economic fundamentals improve.
Philippine Life Insurance Association (PLIA) president Jose L. Cuisia Jr. said that the guarded optimism attitude was based on improving economic conditions particularly in the manufacturing and industry sector. Cuisia is also the president and chief executive officer of industry-leader Philippine American Life and General Insurance Co. (Philamlife) and former central bank governor.
"The population will have more disposable income which will mean a greater ability to acquire insurance policies," Cuisia said.
Aside from the external factors, Insur"The economy is still weak for major global players to take seriously while the tax environment is not helping the industry either," they both added.
In the ’90s, the industry had only 25 players, four of which were foreign controlled. During the liberalization period prior in the latter half of the decade, it ballooned to 50 players wherein half were foreign orchestrated.
As the Asian and domestic economy worsened, a series of mergers and acquisitions (M&As) were realized. By 2000, there were only 39 life insurers.
At the start of the 2003, there were only 37 players or 22 domestic and 15 foreign players. Among the foreign players that decided to pack their bags and transfer to the proverbial greener pastures (in other Asian countries) were Aetna Life, ING Life, Mapfre Asia Life, All State Life, GE Life, Metropolitan Life, CMG Life, Aegon Life, and Allianz AG.
Nonetheless, it is still the foreign insurers that dominate the market. Likewise, the top 10 players account for majority of the business.
By end 2001, four of the five top players were foreign controlled. These are the Philippine American Life and General Insurance Corp. (Philamlife), Sun Life of Canada Philippines Inc., Manufacturers Life Insurance Company Philippines Inc. (Manulife Phils.), and the Philippine Axa Life Insurance Corp., which were ranked first, second, fourth and fifth overall, respectively.
In third place overall, is Insular Life Assurance Corp. which is a pure Filipino insurance company.
In 2001, the top 10 life insurers accounted for P25.8 billion of the total premium income amounting to P30.029 billion.
And while the official statistical report of the IC has not been released, Malinis said that there would not be any dramatic change in market share among the top 10 players.
"What we might observe is a decrease in the margins between the major players," he warned.