NONLIFE insurance industry premium collected in the first quarter amounted to P56.28 billion, representing growth of 45.53 percent, according to the Insurance Commission.
Insurance Commissioner Emmanuel F. Dooc said the high growth in the premium collected and the net profits of nonlife insurers show the tremendous potential of the industry in contributing to the growth of the economy.
The P56.28-billion total premium collected in the first three months was P17.68 billion more than the P38.6-billion premium collected in the same period in 2014.
“These figures show that there is a big potential and a lot of opportunities that are open to the nonlife insurance industry,” Dooc said.
In terms of net income, the nonlife insurance industry also posted high growth rates during the quarter compared to the same period last year.
From a net income of only P3.9 billion in the first quarter of 2014, the net income of the nonlife insurance industry reached P5.23 billion in the first quarter, or an increase of 32.52 percent.
The income of the nonlife insurance industry is generally lower than its life insurance counterparts because of higher taxes imposed on nonlife insurance products, currently at 24.5 percent to 26.5 percent, as compared to only 2-percent tax imposed on life insurance premiums.
This has prompted the Philippine Insurers and Reinsurers Association to lobby in Congress for the passage of a law that will also lower the taxes imposed on nonlife
insurance companies.