The Philippine insurance market expanded by 12.4 percent in 2024, raking in $9.16 billion in premium income, data released by the Germany-based Allianz Research on Wednesday showed.
The Allianz Global Insurance Report, which analyzes developments in markets worldwide, said the Philippine market grew nearly three times from the previous year.
It was largely driven by the life insurance sector, which recovered last year after sustaining two consecutive years of declines, the report said.
The life sector’s premium income rose 13.5 percent to $6.29 billion in 2024 from $5.55 billion in 2023. It accounted for nearly 70 percent of the country’s insurance market.
Allianz expects premium sales in the Philippines to grow by 9.2 percent annually over the next 10 years and see the level likely hitting $24.22 billion by 2035.
“Insurance remains a growth industry,” Ludovic Subran, the chief economist from Allianz, said in the report.
The downside is that “policy inaction” will fuel this growth, particularly in the area of climate change.
“Underinvestment in adaptation is leading
to increasing climate damage, while delayed pension reforms are requiring higher savings efforts from individuals,” Subran said.
Over the long term, he said the private insurance industry cannot shoulder on its own the burden of serving as society’s “repair shop.”
“Only by working together will we be able to meet the major challenges of the “twin transformation,” Subran said.
Property and casualty insurance grew briskly by 10.5 percent in 2024 to $2.33 billion in premium sales from $2.22 billion in 2023.
“Overall, the global insurance market is expected to grow at an annual rate of 5.3 percent over the next ten years, slightly above economic output,” the report said.
Allianz expects the Philippine insurance industry to grow by 9.2 percent a year over the next 10 years.
The life insurance business will grow by 9.5 percent annually, with the property and casualty insurance by 8.3 percent.
“In absolute terms, the global premium pool will grow by $6.02 trillion over the next ten years,” the report said.
“Most of this growth will come from life insurance. More than half of this additional premium pool will be generated in Asia,” it said.
Despite the geopolitical uncertainties and trade tensions now plaguing economies globally, Allianz said a “protection effect” could also be visible as companies demand more risk management solutions in this uncertain and crisis-ridden environment.
“In the longer term, financial fragmentation and weakening international cooperation including on climate, cyber or pandemic preparedness could increase the cost of insuring these risks,” the report said.
Analyst view
This is a “post-pandemic normalization and rising financial awareness among Filipinos,” said John Paolo Rivera, a senior research fellow from the Philippines Institute for Development Studies.
This points to better consumer confidence, coupled with higher demand for financial protection and the insurers’ ability to adapt and operate in a digital economy.
“This is also consistent with broader trends in emerging markets, where insurance penetration is rising as incomes grow and financial literacy improves,” Rivera said.
The real challenge now is sustaining the current momentum, which can be achieved through financial inclusion by tapping and accommodating the underserved and informal sectors, he added.
On the other hand, Michael Ricafort, RCBC’s chief economist, said “improved demographics” and “financial literacy” are the underlying factors driving the country’s insurance market.
