Insurance Commissioner Emmanuel Dooc is hoping that the Philippines' insurance penetration rate will increase to 3 percent before the end of the Aquino administration's term to make the country at par with other ASEAN nations.
In a press briefing Thursday night, Dooc
said the insurance penetration in the Philippines-including both life and non-life insurance-was at 1.97 percent for the first half of the year, an improvement from 1.27 percent recorded in the same period in 2012.
"My wish is to increase further our penetration rate to 3 percent, so that we will be at par with many of our Asean neighbors," Dooc
The "insurance penetration" is computed using gross premiums as a percentage of the country's gross domestic product.
Meanwhile, the "market penetration" rate saw a significant increase as of end-December 2012 to 23 percent, higher than the 18 percent recorded as of end-2011.
This means that of the estimated 96.4 million Filipinos last year, roughly 22 million are covered by insurance products offered by private insurance companies.
"For several years, our numbers hover at 15 percent, meaning 15 percent of our population is covered with insurance, referring only to private insurance.
So this is a significant improvement," Dooc
said that while it is a challenge for the industry to replicate the previous year's strong performance, he
is also optimistic about the growth of the insurance sector for 2013.
"So far, until the first half of this year, the numbers that we are seeing are very encouraging, so it is not farfetched that 2013 will end on a very positive note," Dooc
The latest report shows that in the first half of the year, the total premiums of the insurance industry posted a significant growth of 69 percent to P108.27 billion from the P64.04 billion a year ago.
The total net income of the life and non-life insurance industry in the first half of the year also saw a growth of 22.2 percent to P9.45 billion.
"So this shows that the insurance business is still making a significant profit," Dooc
The insurance industry's total assets likewise increased by 9.5 percent to P737 billion, with the life sector taking up an 83 percent share while the remaining 17 percent was accounted for by the non-life sector.