DESPITE the Covid-19 induced lockdowns, lives covered by microinsurance rose to nearly 40 million during the first half of the year.
In a statement on Monday, Insurance Commissioner Dennis B. Funa said the number of insured lives by microinsurance reached 39.67 million as of end-June, a 7.86-percent increase from 36.78 million in the same period a year ago.
This, even though Funa said the number of lives insured by the nonlife sector during the period dropped by nearly a quarter to 3.79 million from 5.04 million in the same quarter last year.
“The statistics are indicative that it was the nonlife insurance sector that was greatly affected by the implementation of strict community quarantine measures brought about by the Coronavirus Disease 2019
[Covid-19] pandemic,” Funa said.
Taking the largest market share in terms of estimated number of individuals covered by microinsurance are Mutual Benefit Associations (MBAs), with 27.43 million lives covered during the first half of the year.
This is equivalent to 69.16 percent of the total market share.
As for microinsurance premium production, MBAs have yielded P2.08 billion out of P3.54 billion or 58.78 percent as of end-June this year.
According to Funa, CARD Mutual Benefit Association, Inc. remains to be the dominant MBA for its 76.07-percent market share in terms of insured lives and capturing 83.2 percent in total contributions amounting to P1.73 billion as of end-June.
While there was a growth in the estimated number of insured lives, the MBA sector suffered a 17.84 percent year-on-year decline in contributions due to the imposition of strict community quarantine measures by the national government in the middle of Covid-19 pandemic.
The Insurance Commission said these measures affected the capability of the general public to buy, renew, or to continue paying for various microinsurance products.
Nonetheless, Funa expressed confidence that these figures will improve in the third and fourth quarter of the year as community quarantine guidelines were eventually eased.
Trailing CARD Mutual Benefit Association in terms of estimated number of lives insured for the first half of the year are Pag-Asa ng Pinoy MBA, Tulay sa Pag-unlad Mutual Benefit Association, Inc., Alalay sa Kaunlaran (ASKI) Benefit Association, Inc., and Kasagana Ka Mutual Benefit Association, Inc.
Capping the top 5 MBAs for total contributions made during the period are Pag-Asa ng Pinoy MBA, Inc. ranked second, followed by Tulay sa Pag-unlad Mutual Benefit Association, Inc., Simbag sa Emerhensiya Asin Dagdag Pasegurohan MBA, Inc., and Alalay sa Kaunlaran (ASKI) Benefit Association, Inc.
Life insurance
Meanwhile, the life insurance sector posted an 8.77-percent growth in terms of lives insured by microinsurance during the first half of the year to 8.44 million from only 7.76 million in the same period in 2019. In the same period, the total microinsurance premium production of the sector slid by 14.52 percent to P1.05 billion from last year’s P1.23 billion.
Funa said the the decline was “presumably due to the adverse effects of the Covid-19 pandemic.”
Leading the life insurance companies in terms of estimated number of lives covered by microinsurance for the first half of the year is Pioneer Life, Inc., followed by CLIMBS Life and General Insurance Cooperative, United Coconut Planters Life Assurance Corporation, 1 Cooperative Insurance System of the Philippines Life and General Insurance, and Paramount Life and General Insurance Corporation.
Meanwhile, CLIMBS Life and General Insurance Cooperative ranked the highest among life insurance companies in terms of microinsurance premium production. It is followed by Pioneer Life, Inc., United Coconut Planters Life Assurance Corporation, Country Bankers Life Insurance Corporation, and 1 Cooperative Insurance System of the Philippines Life and General Insurance.
On the other hand, the nonlife insurance sector’s microinsurance premium production settled at only P405.13 million as of end-June, a 14.48 percent decline from P473.74 million in the same period a year ago.
Visayan Surety & Insurance Corporation led the nonlife sector in terms of lives covered. Completing the top 5 are Pioneer Surety & Insurance Corp., Card Pioneer Microinsurance Inc. (Pioneer Asia), The Mercantile Insurance Co. Inc., and BPI/MS Insurance Corp.