The insurance industry’s premium income in the first quarter of the year rose by 10.53 percent, the Insurance Commission said in a statement yesterday.
Based on the unaudited quarterly reports of the insurance industry, the total premiums earned in the first three months of the year amounted to P78.15 billion, up from the P70.71 billion posted in the same period last year.
The premium income generated by the life insurance industry increased by 12.02 percent, from P54.4 billion in the first quarter of 2019 to P60.9 billion in the same period for 2020.
“This can be attributed to the increase in variable life insurance premiums of 15.22 percent. Despite the decrease in first year variable life insurance premiums of 6.04 percent, single and renewal premiums posted a significant increase of 25.8 percent and 18.49 percent, respectively,” Dennis Funa, insurance commissioner, said.
Traditional life insurance products also posted an overall increase of 4.28 percent, he added.
The net premiums written (NPW) of the non-life insurance sector also reported an increase of 7.01 percent, with a total of P14.4 billion in the first quarter of 2020 compared to P13.46 billion in the same period last year.
“The increase in NPW of the non-life sector is attributable to increases in fire and accident insurance at 59.69 percent and 18.6 percent, respectively,” Funa said.
“Similar with the past reporting periods, motor car business still comprised the major share of the NPW with 44.44 percent, followed by fire business with 19.88 percent, and accident with 9.05 percent share. These three lines of business accounted for 73.37 percent of the total NPW for the first quarter 2020,” he added.
Meanwhile, the entire insurance industry’s aggregate net worth fell by 7.03 percent year-on-year from P371.39 billion in the first quarter of 2019 to P345.27 billion in the same period this year.
Nevertheless, the agency said the insurance density, which is the amount of premium per capita or average spending of each individual on insurance, posted a growth of 9.89 percent.
“Considering that the national government implemented the enhanced community quarantine in Luzon on March 16, 2020, the stated figures do not yet fully reflect the effects of the coronavirus disease 2019 (COVID-19) pandemic,” Funa said.
“The Insurance Commission is hopeful that the economic and financial impact of the pandemic in the succeeding reporting quarter will, to a certain degree, be mitigated by the measures in the various COVID-19-related circular letters that we have issued,” he added.