BMI View: T hough currently relatively small by global standards , t he insuran ce industry in the Philippines does offer significant future growth potential. Life insurance is already well established and set to benefit from steady improvements in household income rates and life expectancy which will boost demand for a range of retirement and later-in- life sa vings products. The smaller non- life sector also stands to benefit from wider domestic economic growth and demand for key lines such as motor and property will remain strong. As such , premiums written in the market are expected to increase steadily over the medium term and beyond. The c ountry's vulnerability to large- scale natural disasters, such as typhoons, and the presence of several small domestic firms , do es mean that the use of outwards reinsurance will remain high for the foreseeable future .
|Gross life premiums written, PHPbn||120.30||171.21||157.83||180.29||191.94||205.55||220.16||235.99|
|Gross life premiums written, PHP, % y-o-y||39.3||42.3||-7.8||14.2||6.5||7.1||7.1||7.2|
|Gross life premiums written, USDbn||2.85||3.96||3.57||3.97||4.13||4.40||4.74||5.11|
|Gross life premiums written, USD, % y-o-y||43.0||39.0||-9.9||11.2||3.9||6.6||7.9||7.7|
|Gross non-life premiums written, PHPbn||47.80||51.08||54.02||57.67||61.66||66.05||70.71||75.35|
|Gross non-life premiums written, PHP, % y-o-y||12.2||6.9||5.8||6.8||6.9||7.1||7.1||6.6|
|Gross non-life premiums written, USDbn||1.13||1.18||1.22||1.27||1.33||1.41||1.52||1.63|
|Gross non-life premiums written, USD, % y-o-y||15.1||4.4||3.4||4.0||4.3||6.6||7.9||7.1|
Key Updates and Forecasts:
The life insurance sector will continue to account for the majority of premiums written in the Filipino insurance market, with premiums set to increase by around 7.5% annually to reach USD5.1bn in 2019, up from USD4.0bn in 2015 - more than three quarters of insurance premiums in the country.
The smaller non-life sector is expected to see slightly slower growth of around 6% annually, meaning non-life premiums written will rise from USD1.3bn in 2015 to USD1.6bn at the end of the current forecast period in 2019.
Industry regulations were tightened earlier in 2015 and as a result a number of international firms are reportedly considering entering the market with local reports indicating that insurers including Samsung Life (South Korea), Allianz (Germany), Zurich Life (Switzerland) and Fubon Life (Taiwan) are interested in a potential bancassurance partnership with Philippine National Bank.
Typhoon Lando made landfall in October 2015 causing considerable damage - Philippine Crop Insurance Corp. (PCIC) has reportedly set aside PHP732mn for in compensation for affected farmers amidst calls that agricultural insurance be expanded under the government's climate change adaptation measures.
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.