BMI View: The Philippines insurance sector is increasingly attracting international attention, with multinational insurers drawn to high growth rates and substantial future growth potential. At present the life sector is considera bly more developed than the non- life sector, with higher rates of penetration (premiums against GDP) and density (premiums per capita). Both life and non-life insurance lines are expected to grow at healthy rate s throughout our forecast period, however, with domestic economic growth and a rise in household consumption increasing demand for a range of insurance products. The market remains fragmented, and we expect to see further consolidation among the smaller players moving forward.
In recent years, growth in the Philippine insurance industry has been driven by life insurance, a development indicative of a population growing not only in wealth but also in its awareness of risk. The non-life segment continues to grow, but at a far slower pace than the life segment. Recent natural disasters in the Philippines have brought about an escalation of claims and as a result premiums, with insurers increasingly mindful of the high risk levels in the market; non-life insurance therefore remains out of the reach of many, particularly in those lines most vulnerable to high levels of claims, such as property insurance. The Philippines is therefore a key market for micro-insurance products. According to the Insurance Commission, over a quarter of the population (around 28mn) purchased micro-insurance products in 2014, greatly expanding coverage (particularly in the non-life sector).
We expect that 2015 will see the Philippines life insurance sector continue to outperform the non-life market in terms of premium growth as insurers, particularly multinationals, step up their distribution efforts and expand coverage to communities outside of the capital and other major cities. The recent relaxation of regulation surrounding bancassurance...
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.