Microinsurance premiums collected by insurance companies and mutual benefit associations (MBAs) in the first quarter of 2023 increased by 22.48 percent year-on-year, according to the Insurance Commission (IC).
Microinsurance premium collection in the three-month period amounted to P3.25 billion, the IC said in a statement. For the same period last year, it was only P2.65 billion.
The number of lives insured through microinsurance products in the first quarter increased by 15.39 percent year-on-year.
According to the IC, as of the end of the first quarter of 2023, a total of 51.7 million lives are insured under microinsurance policies, while in the same period last year, only 44.81 million lives were insured.
Microinsurance refers to insurance products that can be purchased for premiums which should not be more than 7.5 percent of the minimum wage in Metro Manila, computed daily.
These products include micro-life and health insurance, and micro-agricultural insurance.
There are also micro pre-need products available, such as micro-memorial, educational and pension plans.
Microinsurance premiums collected by non-life insurance companies jumped by 88.83 percent compared to figures during the first quarter of 2022.
Microinsurance premiums collected by MBAs and life insurance companies rose 13.43 percent and 12.02 percent, respectively.
Out of the lives insured under microinsurance policies, 28.82 million or 55.74 percent are insured by policies issued by MBAs. This saw an increase of 11.95 percent year-on-year.
Life insurers covered 16.75 million lives under microinsurance, recording an increase of 12.01 percent, while microinsurance policies issued by non-life insurance companies covered 6.14 million lives, posting a 49.13 percent jump from its year ago level.
As of the first quarter of 2023, there are 48 regulated entities actively engaged in the sale of microinsurance, particularly, 23 MBAs, 12 life insurance companies and 13 non-life insurance companies.
