Life sector to drive insurance industry’s growth

THE INSURANCE INDUSTRY is expected to post steady growth this year, driven by the life sector.

“I think we’ll continue. We’ll continue the growth of the industry for life [insurance],” Insurance Commissioner Reynaldo A. Regalado told reporters on the sidelines of an event on Friday.

He said the industry recorded “sustained” growth in 2025 as Filipinos remained willing to spend on insurance protection.

However, there is room to further expand insurance coverage, especially on the nonlife side, he said.

“Eighty percent is on life. But we need to cover much on property. Last year, it was a challenge considering the natural calamities that we felt… But we have to focus on the on the number of coverage and what benefits we’ve been giving our own people, especially those who are not exactly in a certain level of confidence in their economic status.”

The combined premiums of the life and nonlife insurance sectors and mutual benefit associations stood at P499.23 billion in 2025, the Insurance Commission (IC) said in a statement on Friday.

As a result, insurance penetration, or the ratio of insurance premiums to the gross domestic product (GDP), rose to 1.78% last year from 1.67% in 2024.

Insurance density, or the average spending of each individual on insurance, also reached an all-time high of P4,384.56 last year from P3,894.03 in 2024.

“The sustained increase in premiums and net worth highlights the industry’s positive momentum entering 2026,” Mr. Regalado said in the statement.

“Insurance continues to provide a vital safety net, protecting Filipino families and businesses alike. Through the Commission’s programs on financial literacy and inclusion, together with strengthened regulatory supervision, we aim to broaden access to insurance and achieve even greater protection for all Filipinos this year.”

Latest data showed that the life insurance sector’s premium income rose by 14.54% year on year to P403.21 billion in 2025 from P352.02 billion in 2024.

“Of the 1.78% of insurance penetration, the life insurance sector accounted for 1.44%, reflecting its significant contribution to overall industry growth,” the IC said.

The life sector’s total assets stood at P2.09 trillion at end-2025, growing by 8.54% from P1.93 trillion in 2024.

“Despite an 8.19% increase in total liabilities, the total net worth of the insurance industry grew by 10.58%, from P280.99 billion in 2024 to P310.72 billion in 2025,” the IC said.

The sector’s net income grew by 15.11% year on year to P46.32 billion. Life insurance companies also paid out a total of P121.88 billion in benefits. — AMCS