THE insurance industry recorded flat growth of 0.29 percent in terms of total premium income last year, with the life sector posting a decline while non-life players posted a significant expansion, regulators said on Thursday.
Data from the Insurance Commission (IC) placed the industry’s total premium income at P231.9 billion in 2016, up marginally by 0.29 percent from the previous year’s P231.2 billion.
“Based on this data, we can say that the insurance industry from 2015 to 2016 is flat but we are glad that there is no decline. What contributed to the 0.29 percent increase is the decline in the premium production of the life sector,” Insurance Commissioner Dennis Funa said in a press briefing held at the IC head office on Thursday.
Funa reported that the life insurance sector’s net premium income totaled P182.8 billion, down by 3.04 percent, “as majority of the players in the life sector posted a decrease in their respective premium income ranging from 2.53 percent to 43 percent.”
Sun Life of Canada (Philippines) Inc. bested other life companies in terms of premium income in 2016. It was followed by Philippine AXA Life Insurance Corp., BPI Philam Life Assurance Corp. Inc., Philippine American Life & Gen. Ins. Co., Pru Life Insurance Corp. of U.K., Manufacturers Life Ins. Co. (Phils.) Inc., Insular Life Assce. Co. Ltd., BDO Life (Generali Pilipinas Life), Manulife Chinabank Life Assce. Corp., and SunLife Grepa Financial Inc.
The non-life sector, meanwhile, posted a 16.24-percent gain in 2016, posting P41.6 billion in net premium written, compared to P35.8 billion in 2015.
“Whatever decline there was in the life sector, it was slightly offset by the increase in the non-life sector,” Funa said.
He attributed the non-life sector’s expansion to seven companies that posted significant increases in their net
premiums written, ranging from 56.21 percent to 182.65 percent.
The top 10 non-life insurance players based on net premiums written in 2016 were: Malayan Insurance Co. Inc. (No. 1), Prudential Gtee. & Assce. Inc., BPI/MS Insurance Corp., Charter Ping An (Philippine Charter Ins. Corp.), FPG Ins. Co. Inc. (Federal), Pioneer Insurance & Surety Corp., Standard Insurance Co. Inc., MAPFRE Insular Insurance Corp., UCPB General Insurance Co. Inc., and Commonwealth Insurance Co.
“Three of these seven companies posted an abrupt increase in their net premiums written of their health and accident business. The increase is attributable to the health and accident business which includes the mobile insurance products which provides for theft, accidental damage, and accidental death benefits. We saw an increase in these products,” he said.
The increase in net premiums written was also attributed to the 18.93 percent increase in the motor business, which comprised 50.86 percent of total premiums written in the non-life sector.
Mutual benefit associations (MBAs), on the other hand, contributed P7.5 billion to the industry’s total premium income in 2016.
“The dominant and reliable players in the microinsurance business reported a premium production worth P7.9 billion during the same period, up by 8.78 percent from P6.9 billion in 2015,” Funa said.