COVID-19 insurance claims hit over P8 B

Insurance payments related to the coronavirus pandemic hit more than P8 billion.

IC Comm. Dennis B. Funa

Since the pandemic began, Insurance Commissioner Dennis B. Funa reported that payouts made by life and non-life insurers, health maintenance organizations (HMOs), and mutual benefit associations (MBAs) have reached P8.25 billion as of June this year.

Of the total amount, Funa said P4.35 billion, or 53 percent, was paid in the first half this year.

“The claims paid during the first half of 2021 is already 12 percent more than the total claims paid for the year 2020,” Funa said in a statement on Tuesday, Sept. 21.

As for the aggregate amounts paid per industry from 2020 until the end-June this year, HMOs led the pack with P3.98 billion in COVID-19-related claims paid, constituting 48 percent of the total.

HMO was followed by the life insurance industry with P3.44 billion in payments, constituting 42 percent of the total.

Meanwhile, MBAs and the non-life industry paid seven percent (P546.6 million) and three percent (P279.30 million) of the total P8.25 billion, respectively.

Funa also reported that the COVID-19 death-related claims paid by insurers reached P2.89 billion, securing the largest share in the P8.25 billion, followed by in-patient benefits at P2.65 billion and out-patient benefits at P1.81 billion.

“These three benefits constitute 89 percent, or P7.34 billion, of the total COVID-19- related claims paid since the start of the pandemic until the end of June 2021,” Funa said.

Moreover, the HMO industry was the largest payor of COVID-19-related claims.

In 2020, payouts by the HMO sector accounted for 49 percent of the total of P3.89 billion COVID-19-related claims paid, or P1.91 billion.

From January until the end of June 2021, HMOs paid P2.06 billion in COVID-19-related claims, which amount constitutes 47 percent of the total claims paid during the period and 7.9 percent more than what they paid in 2020,

As of the end of June 2021, the COVID-19-related claims paid by MBAs and the non-life insurance industry have already exceeded the half of the amount of payments the same industries made in 2020.

MBAs paid P91.70 million in the first semester, which already constitutes 54 percent of their total payouts in 2020 amounting to P354.90 million.

Meanwhile, the non-life insurance industry paid P119.1 million in the first semester this year, which already constitutes 74 percent of their total payments in 2020 amounting to P160.20 million.

“Despite the challenges and risks posed by the COVID-19 pandemic and the substantial increase in COVID-19-related claims, life and non-life insurers, HMOs, and MBAs remain financially resilient,” Funa assured.