The total coronavirus disease 2019 (COVID-19) claims paid by life and non-life insurers, mutual benefit associations (MBAs) and health maintenance organizations (HMOs) reached P3.89 billion in 2020, the Insurance Commission (IC) said.
The IC said in a statement yesterday this was based on the results of the three COVID-19-related claims surveys conducted by the agency last year which seeks to assess the continuing financial impact of COVID-19 on the said regulated entities.
The aggregate COVID-19-related claims paid by the HMO sector in 2020 accounted for 49 percent of the said amount, or approximately P1.91 billion.
Life insurers were able to pay P1.46 billion in COVID-19-related claims in 2020, accounting for 38 percent of the whole amount, while MBAs paid P354.9 million (nine percent) and non-life insurers paid P160.2 million (four percent).
The IC said death benefit claims constituted the highest paid COVID-19-related claims, amounting to P1.22 billion in 2020.
This is followed by COVID-19-related claims for in-patient benefits amounting to P1.18 billion and out-patient benefits amounting to P933.7 million.
The first survey covered the months of March to April 2020, the second survey covered the months of May to September 2020, while the third survey covered the months of October to December 2020.
“Adjusting for the number of months covered in each survey, the average claims paid by the four sectors per survey exhibited a steady upward trend,” Dennis Funa, insurance commissioner, said.
“We believe that the upward trends in average claims paid are good indicators of the steady commitment of the four regulated sectors to pay COVID-19-related benefits to their customers and members at the time of their critical need in the year 2020 amid the pandemic,” he added.
Funa however said the surveys did have limitations, as for instance, these did not directly measure the financial impact of the imposition of community quarantine measures by the government on the four sectors, particularly the effects of such measures as regards the production of insurance and HMO agents.
“At any rate, we hope that the aggregate amount of COVID-19-related claims paid in 2020 by life and non-life insurers, MBAs, and HMOs either within or outside of contractual obligations amounting to P3.89 billion, which by itself is no small feat, will continue to inspire consumer confidence in said four respondent sectors; and will educate our fellow Filipinos of the benefits of availing the insurance and HMO products and the benefits of MBA membership,” Funa said. – Angela Celis
