MANILA, Philippines — The local microinsurance sector recorded higher premium collection in 2018 as the number of individuals who availed of microinsurance policies continued to increase, according to Insurance Commission (IC).
Citing preliminary data, Insurance commissioner Dennis Funa said the premium production of the microinsurance sector as of end-2018 rose by nearly 15 percent to P8.14 billion from P7.11 billion in the previous year.
Funa said this happened as the number of individuals covered by microinsurance policies increased over the past year.
“In 2018, the number of individuals covered by some form of microinsurance protection increased by 18.77 percent from 32.74 million in 2017 to 38.89 million,” Funa said.
Funa said the mutual benefit association (MBA) sector continued to lead the microinsurance business, with a total premium production amounting to P4.56 billion, an increase of 16.8 percent from the P3.9 billion recorded in 2017.
This sector also took up the bulk of customers last year, with 22.75 million individuals covered or 17.67 percent up from last year’s level of 19.33 million.
According to IC, CARD Mutual Benefit Association Inc. dominated other mutual benefit association as it contributed 83 percent or P3.79 billion of the sector’s total premium production, protecting about 18.58 million individuals.
Meanwhile, Funa said the life insurance sector posted a 6.94 percent increase in premiums to P2.58 billion in 2018 from P2.42 billion in 2017.
He said CLIMBS Life and General Insurance Cooperative ranked first in terms of premium production in the life insurance sector with P1.34 billion, followed by Pioneer Life Inc., with P676.97 million and the United Coconut Planters Life Assurance Corp. with P189.17 million.
In terms of coverage, the life insurance sector covered 11.85 million individuals with microinsurance policies, an increase of 30.23 percent from 9.1 million in 2017.
The IC chief said CLIMBS cooperative also topped the life insurance sector with 4.52 million individuals covered, followed by Pioneer Life Inc., with 3.51 million and Philippine American Life and General Insurance Co. with 1.77 million.
Lastly, Funa said the non-life insurance sector reported a total microinsurance premium production of P998.97 million in 2018, up by 25.78 percent from P794.19 million in 2017.
This is despite the slight decrease of 0.54 percent in individuals covered from 4.31 million in 2017 to 4.29 million in 2018.
CARD Pioneer Microinsurance Inc. led the non-life insurance sector in terms of premium production which amounted to P668.26 million, while Pioneer Insurance & Surety Corp. had the highest coverage with 2.52 million customers.