Insurance premiums top P500 billion in 2025

February 15, 2026 | 12:00am

As demand for protection continues to rise

MANILA, Philippines — Insurance premiums climbed past the P500-billion mark in 2025, reflecting stronger demand for protection even as insurers delivered hefty payouts to Filipino families and businesses amid economic uncertainty.

Data from the Insurance Commission (IC) showed total insurance premiums rose by 14 percent to P502.64 billion in 2025 from P440.53 billion in 2024. The expansion coincided with robust benefit payments across the industry, underscoring insurance’s role as a financial backstop.

Life insurers accounted for the bulk of premium collections, contributing 80.22 percent of total premiums in 2025. Non-life insurers and mutual benefit associations followed with shares of 16.41 percent and 3.37 percent, respectively, extending the upward trend seen since 2023.

On the claims side, the life insurance industry paid out P121.88 billion in benefits in 2025, while the non-life sector settled P34.05 billion. The combined payouts highlighted the sector’s growing importance as a safety net at a time when households and firms faced lingering cost pressures and heightened risk exposure.

Key market indicators also pointed to broader access to insurance coverage. Insurance penetration reached 1.79 percent in 2025, while insurance density climbed to P4,414.58. This marked the first time in a decade that per capita spending on insurance surpassed the P4,000 threshold, signaling rising awareness and demand for protection.

The industry’s ability to meet policyholder obligations was backed by stronger balance sheets with total assets increasing by 7.9 percent to P2.66 trillion in 2025 from P2.47 trillion in 2024.

Total invested assets likewise grew by eight percent to P2.38 trillion from P2.21 trillion, providing insurers with greater capacity to support claims and long-term commitments.

Despite higher obligations, financial performance remained resilient. Total liabilities and total benefit payments or losses rose by 7.5 percent and 2.4 percent, respectively, but total net income still expanded by 15.1 percent to P64.79 billion in 2025. The growth in earnings reinforced confidence in the sector’s ability to honor claims while sustaining profitability.

“Backed by effective regulation and strong collaboration across the sector, the insurance industry is poised to sustain its growth and expand its contribution to both economic development and the protection of lives, properties and livelihoods of the Filipino people in the years ahead,” the IC said.

Insurance Commissioner Reynaldo Regalado earlier said the life insurance industry sustained its growth momentum in 2025, supported by rising demand for financial protection as Filipinos increasingly prioritized security-related spending.

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