A steadfast push for financial resiliency among Filipinos
THE INSURANCE COMMISSION (IC), established in 1949, plays a crucial role in developing the country’s insurance sector. Throughout the years, the commission has successfully strengthened consumer protection and the stability of the insurance sector by empowering individuals with financial planning and risk management.
Over the past seven decades, the Philippines’ insurance industry has transformed into a robust and dependable sector under the vigilant oversight of the Insurance Commission, Finance Secretary Ralph G. Recto said during Insurance Commission’s 75th anniversary celebration last January.
“This transformation is evident in the industry’s sustained growth in assets, earned premiums, and investments,” he said.
Last year, the Philippine insurance industry witnessed a 2.8% increase in overall growth. It garnered P289.60 billion from life and nonlife insurance plans and an increase of investments to 15% (P1.9 trillion), and assets to 10% (P2.3 trillion), Mr. Recto highlighted.
In a report by the IC, the net income for the insurance industry increased to 9.38%, with P38.28 billion.
Moreover, the report showed life and nonlife insurance companies saw higher net income growth rates. Net income for life insurance companies jumped by 10.32% (P28.79 billion), and nonlife insurance companies increased by 15% (P5.48 billion).
Whereas total premium income by pre-need companies marked an 8.28% increase, from P15.43 billion to P16.70 billion, caused by a surge of pre-need plans sold from the previous year.
“All these numbers underscore the formidable strength of the insurance industry,” Mr. Recto said. “This outstanding performance is a testament to the efficiency of the regulatory and supervisory measures implemented by the Insurance Commission.”
“Clear standards, aligned with global practices, were established and rigorously implemented. The commitment to enforcement was steadfast. The regulatory guardian has been beyond reproach and therefore constantly credible,” he added.
On top of the insurance industry’s recent achievements, the IC was the awardee of the 2023 Freedom of Information Award under the Top Requested and Performing Agencies Category by the Presidential Communications Office (PCO).
“The Insurance Commission was awarded for its significant contribution to the development and success of the Freedom of Information Program implementation, and for demonstrating an outstanding commitment to transparency, accountability, and the pursuit of the principles of freedom of information,” the commission said in a statement.
Additionally, a customer satisfaction survey by the IC for the 3rd quarter of 2023 showed high results in responsiveness (98.16%) and reliability and integrity (97.88%), resulting in 97.24% overall public satisfaction.
More than the country’s regulator for the insurance industry, the commission has been an active advocate for financial inclusion and resiliency in the country. In particular, IC has been advocating for increasing access to financial products and services, financial literacy programs, and utilizing technological innovation within the sector.
In a Life Insurance Convention held in Cebu last year, Insurance Commissioner Reynaldo A. Regalado stressed the vital role insurance agents and underwriters play in supporting financial literacy programs.
“As among the government’s links to the insuring public, life insurance agents and underwriters can help in advocating financial literacy and prudence among our people, for the ultimate goal of financial inclusion for all,” Mr. Regalado said.
“May I thus call upon your organizations to continue supporting financial literacy programs that provide awareness of the benefits of financial products and services, particularly insurance policies that guard against risks that can result in financial ruin,” he added.
To maintain the growth of the insurance sector moving forward, the commission is called to strengthen its laws and policies, specifically, the Financial