Low insurance penetration has long been a persistent challenge for the domestic insurance industry, but the Insurance Commission (IC) noted that the Philippines also lags behind its Asian peers in terms of its asset base.

This disparity is particularly stark when compared to other local financial sectors. IC Deputy Commissioner Ermar U. Benitez pointed out that the domestic insurance industry’s asset base is equivalent to less than a tenth of the banking sector's.

Data showed that the insurance sector’s total assets stood at ₱2.65 trillion as of the first quarter of 2026, up seven percent from the ₱2.48 trillion posted during the same period in 2025. However, this figure represents just 8.6 percent of the banking industry's ₱30.9 trillion asset pool as of end-March 2026.

This limited asset base carries significant implications for the country’s financial stability and its capacity to handle major claims, as a smaller pool of assets restricts the industry’s ability to absorb large-scale losses and respond to unforeseen events.

“If your company’s assets are bigger, you’ll be able to better address the claims,” Benitez told reporters on the sidelines of the Asia Pacific Life Insurance Congress (APLIC) launch. By strengthening these asset bases, the industry will become significantly “more resilient,” he added.

To bridge this gap and boost competitiveness, the IC is revisiting the Insurance Code to update outdated provisions and refine the sector’s overarching strategy. These efforts are also aimed at improving insurance penetration in the country, which remains low at around two percent of gross domestic product (GDP).

While the Commission is careful not to rush the process, the regulatory body is aiming for progress “as soon as possible,” targeting a potential wrap-up of the proposed changes within the 20th Congress.

According to Benitez, the IC is also benchmarking against foreign jurisdictions to explore how innovations like artificial intelligence (AI) can be adapted to the local landscape—such as utilizing wearable technology to track health metrics for life insurance premiums.

However, the immediate priority remains operational efficiency. “For us, it’s more on more efficient claims processing [and] better actuarial evaluation services,” Benitez noted, emphasizing a critical shift away from manual processes.

Apart from altering its operational makeup, the IC is steering its regulatory approach toward stricter enforcement. Benitez, who leads the Commission’s management support services group, explained that this tightening does not mean making initial entry requirements more difficult, but rather making “licensing monitoring stricter.”

Overall, these updates seek to enhance financial consumer protection and ensure industry partners are robust enough to be truly competitive.

As early as 2026, the Philippines is ramping up preparations to host the 21st APLIC for the third time in 2027.

APLIC—a 35-year-old event that stands as the largest gathering of life insurance advisors across Asia—is expected to draw more than 5,000 delegates from China, Australia, Hong Kong, India, Indonesia, Macau, Malaysia, Singapore, South Korea, Taiwan, Thailand, Vietnam, and the Philippines.

“This landmark congress comes at a pivotal moment, serving as the ultimate gathering for over 5,000 advisors navigating the post-COVID landscape and adapting to the fast-evolving AI era,” the Life Underwriters Association of the Philippines (LUAP) said in a June 23 statement.

Benitez, as quoted by LUAP, noted that regional events play a vital role in boosting financial literacy against the backdrop of an evolving industry landscape. According to LUAP, the IC “looks forward to welcoming international delegates and witnessing the cross-border innovations that will ultimately help secure the financial future of families everywhere.”

LUAP President and APLIC Chair Christine Angela Manalaysay said the Philippines’ main goal for the upcoming congress is to unite life insurance advisors from various companies to advance the professionalization of the industry.

Manalaysay added that recent global crises, particularly the COVID-19 pandemic, underscored the critical importance of protection and financial security. This shift, she noted, has fundamentally increased Filipinos’ awareness of health insurance and long-term savings.