THE INSURANCE Commission (IC) said the microinsurance industry expanded in 2018 in terms of individuals covered and premiums produced.
Preliminary data based on the quarterly reports submitted by insurers and mutual benefit associations (MBA) showed the microinsurance sector’s premium production grew 14.45% at end-2018 to P8.14 billion from the P7.11 billion in premiums booked the previous year, the IC reported Thursday.
MBAs continued to be the frontrunner in the microinsurance industry in terms of coverage as well as premium production. The sector booked contributions amounting to P4.56 billion, up 16.8% from the P794.19 million recorded the previous year.
Cornering a market share of 83.06% or P3.79 billion in terms of contributions, CARD Mutual Benefit Association, Inc. remained the leader in the MBA sector. It was followed by Tulay sa Pag-unlad Mutual Benefit Association, Inc. with P258.96 million and Alalay sa Kaunlaran Mutual Benefit Association, Inc. with P69.97 million.
Meanwhile, the life insurance sector produced microinsurance premiums worth P2.58 billion in 2018, growing 6.94% from the previous year’s P2.42 billion.
CLIMBS Life and General Insurance Cooperative led life insurers in terms of premium production with P1.34 billion. Pioneer Life, Inc. and The United Coconut Planters Life Assurance Corp., on the other hand, ranked second and third with P676.97 million and P189.17 million, respectively.
Microinsurance premiums booked by non-insurance companies were at P998.97 million last year, a 25.78% increase from P794.19 million in 2017.
CARD Pioneer Microinsurance, Inc. ranked first in the sector last year with a market share of 66.89% at P668.26 million, followed by Pioneer Insurance & Surety Corp. (P194.31 million) and The Mercantile Insurance Co., Inc. (P94.55 million).
The microinsurance sector likewise posted an 18.77% growth in the number of individuals covered to 38.89 million in 2018 from 2017’s 32.74 million.
The MBA sector covered a total of 22.75 million individuals at end-2018, 17.67% higher from 19.33 million a year prior.
Life insurers posted a 30.23% increase to 11.85 million individuals covered from 9.1 million the previous year.
Meanwhile, non-life insurance companies saw a 0.54% decline in individuals covered to 4.29 million in 2018 from the previous year’s 4.31 million.
Insurance Commissioner Dennis B. Funa said the life and non-life insurance sectors showed significant increases in terms of premiums produced and lives covered.
“This only proves that microinsurance in our country continues to grow and is an effective and affordable financial product for the protection of the properties and lives of our countrymen,” Mr. Funa was quoted as saying in a statement. — Karl Angelo N. Vidal