BMI View: We retain our positive view of the Philippines' insurance sector, which offers significant growth potential - and are not altering our forecasts this quarter. Life insurance should benefit from higher household incomes. Good pricing power on the part of property insurers (and increased volumes) will drive growth in that sub-sector and for the non-life segment as a whole. Both the life and the non-life segments should benefit from the generally favourable economic environment.
|e/f = BMI estimate/forecast. Source: Insurance Commission, BMI|
|Gross life premiums written, PHPbn||171.21||157.83||179.69||190.87||204.43||218.98||234.76||251.91|
|Gross life premiums written, PHP, % y-o-y||42.3||-7.8||13.9||6.2||7.1||7.1||7.2||7.3|
|Gross life premiums written, USDbn||3.96||3.57||3.98||4.01||4.26||4.60||4.95||5.34|
|Gross life premiums written, USD, % y-o-y||39.0||-9.9||11.3||0.9||6.2||7.9||7.7||7.8|
|Gross non-life premiums written, PHPbn||51.08||56.73||61.69||67.93||76.23||85.54||96.02||107.79|
|Gross non-life premiums written, PHP, % y-o-y||6.9||11.1||8.8||10.1||12.2||12.2||12.3||12.3|
|Gross non-life premiums written, USDbn||1.18||1.28||1.36||1.43||1.59||1.80||2.03||2.29|
|Gross non-life premiums written, USD, % y-o-y||4.4||8.6||6.3||4.6||11.2||13.1||12.8||12.8|
Key Updates And Forecasts:
We remain upbeat about the prospects for the life segment, and forecast steady growth in premiums of around 7% annually. The latest results indicate that the leading life companies have been enjoying profitable growth, in part because of improved investment income relative to 2014. Various drivers should support the continued expansion of the life segment. These include growth in the number and wealth of households that can afford life insurance. In the meantime, life insurers themselves will continue to exploit strengths such as brand names, multi-channel distribution strategies, ease of access to the capital that they need and product innovation know-how.
Having substantially increased our forecasts for the non-life segment in Q216, we have maintained our forecasts unchanged this quarter. Key themes remain the generally favourable economic outlook, rising household incomes, increased appetite (from a low base) for property insurance and the rise in the number of vehicles on the Philippines' roads. We expect that pricing will remain disciplined and that higher claims costs will be passed on to customers.
The Philippines Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Philippines Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Philippine insurance industry.
- Benchmark BMI's independent insurance industry forecasts for Philippines to test other views - a key input for successful budgeting and strategic business planning in Philippines's insurance market.
- Target business opportunities and risks in Philippines through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
- Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
- Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
- Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
- Motor: Fleet size by type of vehicle % change y-o-y.
- Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.