By China S. Leyco
Premium income of the local insurance industry increased by double-digits in the first nine-months of the year as insurers penetration rate reached its highest level in five-years, the government regulator said yesterday.
Dennis B. Funa
In a statement, Insurance Commissioner Dennis B. Funa said that the industry recorded a total premium of P219 billion at end-September, up by 18 percent compared with P185.51 billion in the same period last year.
Funa said all sectors — life insurance, non-life insurance and mutual benefit organizations (MBAs) — registered a positive growth in terms of premiums collected.
The life insurance sector reported P174.15 billion in total premiums which accounted for 79.55 percent of the collection by the industry.
Broken down, the life insurance sector collected P130.1 billion in premiums from variable life insurance products and P44.02 billion from traditional life insurance products.
Funa highlighted the significant increase in all premium types of variable life insurance products.
“First year, single and renewal premiums of variable life insurance products posted double digit increase of 20.72 percent, 21.27 percent and 29.52 percent, respectively,” Funa said.
The net premiums written of the non-life insurance sector likewise increased by seven percent from P34.31 billion a year before to P36.83 billion this year.
Consistent with the trend in the past reporting periods, motor car insurance business comprised more than half of the total net premiums written with 51.39 percent, followed by fire insurance business with 13 percent and accident insurance business with 9.87 percent share.
The reported contributions and premiums of MBAs increased to P7.93 billion, up by 21 percent from P6.54 billion in the same period last year.
Funa noted that three MBAs posted significant increases in their respective reported contributions and premiums, the total of which accounts for 77.09 percent of the total.
Assets of the insurance industry also further increased to P1.55 trillion as of the end of third quarter this year from P1.54 trillion last year.
Funa likewise noted that other indicators consistently point toward positive growth.