The total microinsurance premiums in the first quarter of the year posted an annual growth of 14.87 percent, according to the Insurance Commission (IC).
The IC said in a statement yesterday the premiums or contributions collected reached P2.65 billion in the first quarter, up from the P2.31 billion recorded in the same period a year ago.
“It is likely that the continued relaxation of community quarantine protocols, taken together with the increasing awareness of the public of the importance of having affordable insurance products, led to the 14.87 percent increase in premium or contribution production,” Dennis Funa, insurance commissioner, said.
“We have also observed that the lingering adverse economic impact of the pandemic at the micro level may have contributed to this increase, as those who availed microfinance or credit transactions were able to avail of the bundled microinsurance products,” he added.
Microinsurance providers were able to insure an estimated 44.81 million lives in the first quarter of the year, the IC said.
Mutual benefit associations (MBAs) contributed 59.2 percent of the total premiums or contributions collected, amounting to P1.57 billion. Life and non-life insurers contributed 28.27 percent and 12.53 percent, or P749.96 million and P332.38 million, respectively.
MBAs also remain to have the largest market share in terms of the number of estimated lives insured by microinsurance products, accounting for 57.45 percent of 44.81 million, or 25.74 million lives.
The life and non-life insurance sectors accounted for 33.36 percent and 9.19 percent of the market share, respectively, or 14.95 million and 4.12 million lives microinsured.
In the first quarter of 2022, there were 48 entities actively engaged in providing microinsurance products, specifically 23 MBAs, 11 life insurers and 14 non-life insurers. –Angela Celis
