Local insurance industry’s total premiums climbed past the half-trillion peso mark for the first time in 2025, fueled by record per-capita spending and heightened consumer focus on financial security.

Latest data from the Insurance Commission (IC) showed that total premiums across the life, non-life, and mutual benefit sectors rose 14.1 percent to ₱502.6 billion last year from ₱440.5 billion in 2024.

In 2025, the life insurance segment remained the primary engine of growth, accounting for 80.2 percent of the industry’s total haul. Premiums in the sector rose 14.5 percent to ₱403.2 billion, from ₱352 billion a year earlier.

Regulators attributed the performance to the fundamental shift in consumer behavior, as more Filipinos prioritized long-term financial safety nets over discretionary spending.

Meanwhile, the non-life sector, which includes coverage for property and motor vehicles, contributed approximately ₱80.9 billion, or 16.1 percent of the total.

Mutual benefit associations, which primarily serve low-income and informal-sector workers, accounted for the remaining ₱17.1 billion.

The expansion was accompanied by a significant increase in claims, which the regulator described as “strong” payout performance.

Life insurers paid out ₱121.9 billion in benefits through 2025, while the non-life industry disbursed ₱34.1 billion.

The insurance commission said the scale of these payouts showed the industry’s role as critical stabilizer for the domestic economy during periods of uncertainty.

Market depth also showed notable improvement as insurance density, or the average amount spent on insurance per person, exceeded ₱4,000 for the first time in a decade to reach ₱4,415. Insurance penetration, which measures the industry’s contribution to the national economy, rose to 1.79 percent.

Bottom-line figures mirrored the top-line growth as the industry’s combined net earnings climbed 15.1 percent to ₱64.8 billion from ₱56.3 billion in 2024.

According to the regulators, this profitability was maintained despite single-digit increases in total liabilities and benefit payments over the same period.

In a statement on Feb. 11, the Insurance Commission said the sector’s financial resilience reinforces confidence that insurers can meet their obligations to beneficiaries.

Looking toward 2026, the regulator expects the industry to maintain its upward trajectory, citing effective regulation and increased collaboration within the private sector as key drivers for future expansion.