THE estimated total number of lives covered by microinsurance products in the Philippines breached the 50-million mark last year amid the Covid-19 pandemic.
The Insurance Commission said in a statement on Wednesday that the number of insured lives by microinsurance products last year hit 50.35 million, surging by 11.56 percent from 45.13 million in 2019, based on unaudited Quarterly Reports on Selected Financial Statistics (QRSFS) from microinsurance providers.
“We hope that these figures will be confirmed by the later submission of audited annual statements for the year 2020 by our microinsurance providers. If the QRSFS will be confirmed, then the Insurance Commission will have reached its target of 50 million microinsured lives two years earlier—a target that we initially foresaw will be reached by 2022,” Insurance Commissioner Dennis Funa said.
However, Funa pointed out that the non-life insurance sector saw a 20.96-percent drop year-on-year in the number of estimated lives under microinsurance, down to 6.69 million in 2020 from 8.47 million in 2019
But he said this was offset by the 12.88-percent increase in the MBA sector and the 33.48 percent rise in the life insurance sector.
“Based on data available, the number of estimated lives insured by the MBA sector grew from 25.66 million as of 4Q 2019 to 28.96 million as of 4Q 2020; while those microinsured by the life insurance sector increased from 11.01 million to 14.70 million year-on-year,” he said.
On the other hand, the microinsurance sector’s aggregate contribution or premium production shrank by 14.5 percent year-on-year to P7.8 billion in 2020 from P9.12 billion in 2019.
“It is highly likely that the decrease is due to the effects of the implementation of community quarantine protocols to curb the spread of the Covid-19 pandemic,” he said.
“Further, it is also likely that the inverse relationship of the decrease in contribution or premium production of the microinsurance sector, on the one hand, and the increase in the estimated number of lives insured by microinsurance, on the other, may be attributed to the effects of the extension of grace periods in microinsurance products and the grant of similar extensions in payment of microinsurance premiums or contributions due to the Covid-19 pandemic,” Funa added.
Among the sectors, the non-life insurance industry took the largest hit due to the continuing implementation of stricter quarantine measures. Its premium production fell by 25.46 percent year-on-year to P913.51 million in 2020 from P1.23 billion in 2019.
Apart from the non-life insurance industry, the MBA sector’s contribution production also contracted by 15.13 percent to P4.46 billion in 2020 from P5.26 billion in the previous year, while the life insurance sector posted an 8.17-percent decline year-on-year to P2.42 billion from P2.64 billion in 2019.
“Nevertheless, we are hopeful that these adverse effects are only temporary; and that the situation will improve in the succeeding months,” he said.
As of end-2020, there were 44 entities actively engaged in providing microinsurance products: 23 MBAs, 10 life insurers, 11 non-life insurers.
The Insurance Commission also announced that CARD Mutual Benefit Association, Inc. topped the list of MBAs with the most number of estimated lives insured and the highest microinsurance contribution production last year.
Trailing CARD Mutual Benefit Association in terms of estimated number of lives insured are Pag-Asa ng Pinoy MBA, Inc.; Tulay sa Pag-unlad Mutual Benefit Association, Inc.; Alalay sa Kaunlaran (ASKI) Benefit Association, Inc.; and CCT Mutual Benefit Association, Inc.
Capping the top five MBAs for total microinsurance contribution are Pag-Asa ng Pinoy MBA, Inc.; Tulay sa Pag-unlad Mutual Benefit Association, Inc; Simbag sa Emerhensiya Asin Dagdag Pasegurohan MBAI; and Alalay sa Kaunlaran (ASKI) Benefit Association, Inc.
Leading the life insurance companies in terms of the number of estimated lives insured by microinsurance for 2020 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; and Paramount Life and General Insurance Corporation.
Meanwhile, CLIMBS Life and General Insurance Cooperative had the highest microinsurance premium production among life insurance companies last year. It was followed by Pioneer Life, Inc.; United Coconut Planters Life Assurance Corporation; 1 Cooperative Insurance System of the Philippines; and Country Bankers Life Insurance Corporation.
For the non-life insurance sector, Pioneer Insurance & Surety Corporation topped the list in terms of number of estimated lives insured by microinsurance. Completing the top five are Visayan Surety & Insurance Corporation; CARD Pioneer Microinsurance, Inc.; UCPB General Insurance Company, Inc.; and The Mercantile Insurance Company, Inc.
On total microinsurance premium production, the non-life insurance sector was led by CARD Pioneer Microinsurance, Inc.. It was trailed by The Mercantile Insurance Company, Inc.; Pioneer Insurance & Surety Corporation; UCPB General Insurance Company, Inc.; and Visayan Surety & Insurance Corp.