Microinsurance industry posts growth
THE MICROINSURANCE industry booked a double-digit expansion in premiums and contributions in the first nine months of 2017, driven by robust growth across all sectors.
Preliminary data based on the quarterly reports submitted by microinsurance firms to the Insurance Commission showed that the industry ’s total premiums and contributions collected in the first nine months of 2017 rose by 30.06% to P5.17 billion from the P3.97 billion generated during the same period in 2016.
Broken down, mutual benefit associations (MBA) continued to make up more than half of the total as the sector booked P2.92 billion in premium contributions at end- September 2017, up 32.39% from the P2.2 billion logged in the comparable year-ago period.
“The life and non-life insurance sectors likewise registered an increase in terms of premium generated from the sale of microinsurance products,” Insurance Commissioner Dennis C. Funa was quoted as saying in a statement.
Life insurance premiums surged by 27.84% to P1.73 billion from the P1.36 billion logged in the same period in 2016.
On the other hand, total premiums of the non- life sector also rose to P520 million by 25.86% from P410 million reported in 2016.
“Outreach of microinsurance as measured by the number of individuals covered continues to expand by 21.66%,” Mr. Funa noted.
The number of individuals covered by microinsurance products grew 21.66% to 32.03 million as of September last year. This was up from the 26.33 million logged in 2016.
“Again, the MBA sector recorded the highest number of individuals covered with 17.85 million individuals and dependents covered or 55.72% of the 32.03 million,” Mr. Funa said.
Those covered by non- life insurance products also soared by 66.77% to 5.18 million at end-September 2017 from the 3.11 million covered the previous year.
Meanwhile, individuals covered by the life insurance sector rose by 18.72% to 9 million from the 7.58 million booked the prior year.
The Insurance Commission said there are 41 firms that provide microinsurance products, made up of 21 MBAs, 11 life insurance companies and nine non-life insurance firms. •