Combined insurance premium surges 37.5% amid pandemic


COMBINED total premium income of life, non-life insurance industries and mutual benefit associations (MBAs) surged by 37.5 percent to P187.13 billion in the first half of this year amid the Covid-19 pandemic.

Based on data submitted to the Insurance Commission, the three industries’ premium income—money spent by individuals and/or businesses for an insurance policy—from January to June this year was higher than the P136.1 billion posted in the same period a year ago.

Likewise, the three industries’ aggregate net income for the first semester also rose by 29.39 percent year-on-year to P24.63 billion from P19.03 billion.

Benefits paid by the industry also jumped by 46.73 percent to P64.94 billion from P44.26 billion in the first half of 2020.

“The growth of the life and non-life insurers’ and MBA’s aggregate premiums and contributions earned and their aggregate net income in Q2 [second quarter of] 2021 are indicative of economic recovery amid the pandemic,” Insurance Commissioner Dennis B. Funa was quoted in a statement as saying. “Moreover, the year-on-year increase in benefits paid during the same quarter highlighted the responsiveness of our insurers and MBAs to the needs of the insuring public despite the challenges” posed by the economic and health crises.

The figures Funa cited were obtained from the submitted unaudited “Quarterly Reports on Selected Financial Statistics” submitted by 128 out of the 135 licensed insurers and MBAs.

Broken down per sector, the life insurance industry generated a P155.17 billion total premium as of end-June, which is 43.7-percent higher than the P107.98 billion in the comparable period last year.

Its total net income also rose by 33.11 percent to P19.03 billion from P14.3 billion, owing to the 35.85-percent growth in total underwriting income.

Meanwhile, the non-life insurance sector’s net premiums written went up by 12.55 percent to P25.51 billion in the first six months of this year from P22.66 billion a year ago.

However, the net income of the sector contracted slightly by 0.57 percent to P3.35 billion from P3.33 billion.

Funa said the dip in the income may be attributed to decreases in premiums earned, other underwriting income and the P503.9-million increase in general and administrative expenses.

Meanwhile, the total premium or contribution income of MBAs reached P6.46 billion in the first semester this year, higher than P5.45 billion in 2020.

The sector’s net surplus also spiked by 63.65 percent year-on-year to P2.26 billion from P1.38 billion on the back of increases in premium income and gross investment income.

Read full article on BusinessMirror

Leave a Reply