THE insurance industry posted a single-digit rise in its premium income last year, Insurance Commission (IC) reported on Tuesday.
In a statement, Insurance Commissioner Dennis Funa announced that the industry’s total premium income hit P304.64 billion in 2019, a 4.99-percent increase from P290.15 billion reported last year.
The insurance regulators provided an explanation for the latest data but declined to release the actual premium income of the sectors under the insurance industry, such as life, non-life. and mutual benefit associations.
Meanwhile, Funa said the strong performance of life insurers supported the double-digit surge in the net income of the whole insurance industry last year.
The industry’s total net income last year was up by 20.38 percent to P45.12 billion from P37.48 billion in 2018.
The IC chief explained that “the significant growth of the life insurance industry’s net income, which was due to increases in premium income, commissions earned, and underwriting income, drove the overall increase of the net income of the entire insurance industry.”
The life insurance industry’s net income expanded by 25.76 percent to P36.13 billion in 2019 from the P28.73 billion posted the previous year.
Funa added that total investments grew by 19.89 percent to P1.59 trillion last year from P1.33 trillion in 2018.
The industry’s aggregate net worth also increased by 13.04 percent to P381.59 billion in 2019 from P337.55 billion.
Funa also said insurance density, which is the amount of premium per capita or average spending of each individual on insurance, jumped by 3.35 percent to P2.81 billion last year from P2.72 billion in 2018.
He pointed out that the latest IC figures were obtained prior to the onset of the enhanced community quarantine implemented in March to contain the spread of the coronavirus disease 2019 (Covid-19).
“Nevertheless, we hope that the economic and financial impact of the pandemic in the succeeding reporting quarter will be softened by the measures adopted by the commission through the various Covid-19-related circular letters that we have issued,” Funa added.