Insurance penetration rate improves in Q1

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

May 24, 2026 | 12:00am

MANILA, Philippines — The insurance industry’s penetration rate improved in the first quarter, driven by higher premiums, invested assets and benefits paid, according to the Insurance Commission.

Latest IC data showed that insurance penetration – or the ratio of insurance premiums to gross domestic product – rose to 2.03 percent from January to March compared to last year’s 1.89 percent.

It was also higher than the 1.79 percent insurance penetration rate recorded in end-2025.

This came as total premiums rose by more than 13 percent to P140.85 billion in the first quarter from P124.48 billion in the same period last year, reflecting Filipinos’ continued trust in insurance as a reliable financial safety net.

Meanwhile, insurance density – which represents the ratio of total premiums to the population or the approximate spending of every individual on insurance – improved by more than 12 percent to P1,231.61 in the first quarter from P1,094.94 in the same period last year.

“Amid prevailing economic challenges, the insurance industry remains firmly positioned to meet policyholder needs and deliver on its commitments with stability and resilience,” Insurance Commissioner Reynaldo Regalado said.

In addition, the IC said the local industry had “maintained steady performance” in the first three months.

“The sector continued to record growth in invested assets, premiums and benefits paid, reflecting its sustained capacity to meet policyholder obligations and support claims,” the regulator added.

However, net income declined by 1.8 percent from P15.30 billion in the first quarter of 2025, “mainly due to higher benefit payments during the period.”

Total benefit payments picked up by 11.4 percent to P43.44 billion in the first quarter from P39.01 billion in the same period a year ago.

This underscores the industry’s “continued ability to honor claims and provide timely financial support to policyholders and beneficiaries,” the IC said.

Meanwhile, total assets increased by 6.9 percent to P2.65 trillion in the first quarter from P2.48 trillion in the comparative period in 2025.

Total invested assets rose by 8.2 percent to P2.37 trillion from P2.19 trillion.