January 30, 2013

Philippine Insurance Industry Generates P11 billion Last Year

2012 is indeed a good year for Philippine insurance industry by posting strong growth in premium income last year.

Insurance Commisioner Emmanual Dooc stated on wednesday "gross premium of life companies, minus five companies reached P118 billion. So maybe we can round it off to P120 [billion]. I’m sure these five will also have contributions to make."

“We have surpassed our target many times over, we set it at P100 billion. With your help and support, we have done something for the industry. The P118 billion represents 30 companies, because five pa di nagrereport [have not submitted their reports yet]. They are small players, but definitely they, baka [maybe] P500 million to P2 billion,” he also added.

The recent increase in earnings which is P118 billion was up by an staggering 37.5 percent from P85 billion in the year 2011. The said increase surpassed the 16 percent target of Philippine Insurance Industry.

The rapid and current improvements of the economy and premium tax reduction is said to be some of the major factors that contributed in the growth of insurance industry in the Philippines according to Dooc.

“As you know, people with investment money will look for better instruments that can provide higher yields to them, and variable life which is offered by insurers promises more returns to them compared with other instruments offered by other competing financial institutions,” he added.