The number of people buying life insurance in the first three months this year increased nearly 68 percent to 7.4 million, from some 4.4 million a year ago, according to the Insurance Commission (IC).
But premium production for the period fell nearly 2 percent, as well, indicating that as more Filipinos seek contingent protection against the various risks to life and limb the benefit derived from such contracts have diminished over the same time frame.
The IC released data on Wednesday, showing premium sales in the life sector falling 1.87 percent to P436.5 million in the initial three months this year, from P444.8 million last year.
It gets dire from here as the number of Filipinos covered by so-called microinsurance, which pays as little as P5,000 in benefits, in fact fell in the first six months this year to only 26.6 million Filipinos, from 28.4 million, based on data obtained from the IC.
According to Insurance Commissioner Dennis B. Funa, so-called mutual benefit associations (MBAs) reported the highest number of individuals covered by microinsurance.
“Taking up 64.1 percent of the market share in terms of number of individuals covered, the MBA sector covered 17.1 million members and dependents, which translated to a total of P850.5 million in terms of premium production,” Funa said.
CARD MBA Inc. dominated the MBA sector, with total share of 75.46 percent and 77.01 percent in terms of the number of lives insured and premium production, respectively.
In terms of the number of lives insured, Pag-asa ng Pinoy MBA Inc. came in second, followed by TSPI Mutual Benefits Association Inc., Alalay sa Kaunlaran (Aski) Benefit Association Inc. and ARDCI Mutual Benefit Association Inc.
As to the total contributions made, Tulay sa Pag-unlad Mutual Benefit Association Inc. came in second, followed by Pagasa ng Pinoy MBA Inc., Aski Benefit Association Inc. and Simbag sa Emerhensiya Asin Dagdag Pasegurohan MBAI.
The IC further said the life-insurance sector covered 7.4 million individuals with total premium production of P436.5 million in the first half this year.
“The life-insurance sector posted a 67.90-percent increase in terms of number of insured lives, from 4.4 million during the first quarter of 2016 to 7.4 million of the same period this year. However, the life-insurance sector posted a slight decrease in terms of premium production,” he added.
The total premium production of the life-insurance sector declined by 1.87 percent to 436.5 million as of end-March 2017, from P444.8 million during the comparable period last year.
The top 5 life-insurance companies in terms of number of covered lives include: CLIMBS Life and General Insurance Cooperative; Pioneer Life Inc.; The Philippine American Life and General Insurance Co., United Coconut Planters Life Assurance Corp.; and Country Bankers Life Insurance Corp.
In terms of premium production, CLIMBS Life and General Insurance Cooperative Inc., likewise, ranked the highest followed by: Pioneer Life Inc.; Country Bankers Life Insurance Corp.; United Coconut Planters Life Assurance Corp.; and The Philippine American Life and General Insurance Co.
Also, the nonlife-insurance sector reported a 53.03-percent year-on-year decline in the number of lives covered, to 2.2 million this year from 4.6 million. Still, the sector posted an increase of 47.12 percent in terms of premium production amounting to P156.3 million, from P106.2 million in the first quarter of 2016.
Pioneer Insurance and Surety Corp. ranked the highest in the nonlife-insurance sector in terms of number of lives covered, followed by Bankers Assurance Corp., Western Guaranty Corp., People’s General Insurance Corp. and CARD Pioneer Microinsurance Inc.
On the other hand, CARD Pioneer Microinsurance Inc., took the top spot among the nonlife-insurance sector in terms of premium production, followed by Mercantile Insurance Co. Inc.; Pioneer Insurance and Surety Corp.; Western Guaranty Corp.; and Bankers