Insurance penetration rises on higher premium collections

MANILA, Philippines — Insurance penetration in the Philippines climbed to 1.96 percent in the second quarter from 1.79 percent in the same quarter last year, driven by higher premium collections, according to the Insurance Commission.

The IC attributed the higher insurance penetration, measured as the ratio of insurance premiums to gross domestic product, to a “substantial” increase in premiums collected by insurance companies.

“The commission views these developments as encouraging indicators, underscoring rising public awareness of financial protection, greater insurance adoption and growing confidence in the insurance industry,” it said in a statement.

Insurance density, or the average spending of each individual on insurance went up by 15.2 percent to P2,468.63 in the second quarter from P2,142.19 in the same period in 2025.

Combined premiums collected by life and non-life insurance companies and mutual benefit associations (MBAs) stood at P282.91 billion in the second quarter, 16.2 percent higher than the recorded P243.39 billion a year earlier.

The life insurance industry made up for the bulk of premium collections, rising by 17.9 percent to P229.98 billion from P195.05 billion.

Non-life insurance industry posted a nearly 10 percent increase in premium collections to P44.19 billion in the second quarter from last year’s P40.18 billion.

Likewise, premium contributions of MBAs increased by 7.1 percent to P8.73 billion from P8.16 billion.

The IC also reported gains in other key industry indicators.

Insurers paid a total of P90.87 billion in benefits in the second quarter of 2026, 16.7 percent higher than P77.87 billion in the same period in 2025.

Meanwhile, total assets grew by 8.5 percent to P2.76 trillion, while total liabilities increased by 9.6 percent to P2.25 trillion.

Total net worth rose by four percent to P515.55 billion in the second quarter from P495.54 billion in the same quarter last year.

Total paid-up capital and guaranty fund edged up by 2.4 percent to P87.44 billion.