Finance Secretary Ralph G. Recto called on the life insurance industry to redefine how people perceive life insurance, noting that it is not mere expenses but protection for a better future for Filipino families.

“It is not a mere transaction but a selfless act of love that they can bestow upon their families. Hindi lang ito dapat tingnan na isang gastos. Hindi lang ito para sa may-kaya. At hindi lang ito napapakinabangan kapag pumanaw na ang isang mahal sa buhay,” Recto said on Tuesday night at the 74th anniversary of Philippine Life Insurance Association (PLIA).

He said that the life insurance industry would aid in the government’s goal to reduce poverty incidence to a single digit or 9 percent by 2028.

To meet its target, the government must raise 10 million more Filipinos above the poverty line in the next four years. As of 2023, the government has successfully lifted 2.5 million Filipinos out of poverty, lowering the poverty rate to 15.5 percent.

Citing the 2024 World Insurance Report, Recto said that life insurance penetration (premiums as a percentage of gross domestic product) in the country remains relatively low at 1.2 percent in 2023, compared to the global average of 2.9 percent and 2.2 percent in emerging Asia.

“This is both a challenge and an opportunity—a call to action for the industry to step up efforts in ensuring that every Filipino, especially those in low-income brackets, is protected and shielded from falling below the poverty line,” the DOF chief said.

He called on the industry to take advantage of the country’s labor market, growing middle class, and projected ascent to become an upper-middle-income country by 2025.

In 2023, the life insurance industry provided coverage equivalent to about 84 million lives, or a 16 percent increase from the pre-pandemic figure of 72 million.

Of this number, 44 million lives were covered by micro-insurance products.

Meanwhile, the average amount Filipinos invest in life insurance has risen to P2,745.7 in 2023 from P2,182.8 pre-pandemic.

Based on the PLIA presentation, the life insurance industry's first quarter performance of the year all posted positive growths with its premium income increasing to 12 percent, New Business Annual Premium Equivalent to eight percent, assets to nine percent, investments to 10 percent, and net income to 49 percent.