January 29, 2023
COVID19-related Claims Total P1.18B in Q2 2022 as per Insurers, HMOs, and MBAs

COVID19-related Claims Total P1.18B in Q2 2022 as per Insurers, HMOs, and MBAs | Photo by Mikhail Nilov from Pexels.com

MicroInsurance Philippines | COVID19-related Claims Total P1.18B in Q2 2022 as per Insurers, HMOs, and MBAs | During the quarter ended on 30 June 2022, the Insurance Commission found that life and non-life insurers, health maintenance organizations (HMOs), and mutual benefit associations (MBAs) paid out a total of ₱1.18 billion in claims relating to COVID-19.

According to the results of the IC survey, which was conducted to evaluate the ongoing financial impact of COVID-19 on our regulated entities, payouts by the life insurance sector of the insurance industry constitute 74% of the total COVID-19 claims from April to June 2022, amounting to ₱877.30 million. In the same time frame, HMOs forked over ₱258.40 million, or 22%, of the total claims connected to COVID-19. Meanwhile, non-life insurers contributed 3% (₱32.60 million) and MBAs contributed 1% (₱14.90 million).


Number of Participants in the Survey

Participating in the poll were 31 out of 33 licensed MBAs, 31 out of 32 licensed life insurers, 49 out of 55 licensed non-life insurers, 31 out of 33 licensed MBAs, and 26 out of 29 licensed HMOs. This results in a total participation rate of 137 out of 149, which is equivalent to 91.95%.

30 of 31 life insurance firms surveyed reported they received COVID-19 claims from April to June 2022. 20 of the 49 non-life insurers surveyed acknowledged receiving similar claims. 20 of 31 MBAs and 21 of 26 HMOs reported COVID-19-related claims in the same time frame.


The Trend of Claims in First to Second Quarters 2022

In connection to tracking the number of claims paid by its regulated organizations connected to COVID-19 from January to June 2022, the Insurance Commission’s survey revealed the number of COVID-19-related cases in the Philippines during that time period.

According to the data, in January 2022, when the number of new COVID-19 cases surpassed 700,000, insurers paid out approximately ₱1.2 billion in claims. As the number of reported instances of COVID-19 fell from February to May, so did the total amount of claims connected to the virus. While the number of claims filed due to COVID-19 decreased between January and April 2022, there was a minor uptick in the number of claims filed and paid between May and June 2022.


Claims per Benefit Ranking 

In April through June 2022, life and non-life insurers, HMOs, and MBAs paid a total of ₱1.18 billion, ₱842 million (71.15%) of which were Death Benefits. Out-Patient Benefits make up ₱141 million (11.89%) of the total. InPatient claims accounted for ₱139 million (11.74%) paid from April to March 2022. These three benefits account for 95% of all paid claims.

Out-Patient Benefits claims rated first for April to June 2022, with 32,963 out of 42,767 claims. Other Benefits such as Emergency Benefit, Financial Assistance benefits, etc. totaled 2,949 claims), and Death Benefits had 2,917 claims.

As a matter of interest, Q2 2022 claims payments relating to COVID-19 were 52% lower than Q2 2021 payments. But death claims paid grew by 8% and hospitalization payments surged by a stunning 332.54% year over year, despite a considerable overall decline across all types of benefits given.


Claims Paid between 2020 to 2nd Quarter 2022

Life and non-life insurers, HMOs, and MBAs paid out a total of ₱20.82 billion in claims linked to COVID-19 from the beginning of the pandemic to the 30th of June, 2022. From this, ₱12.82 billion (61% of the total) was paid out in 2021, ₱3.89 billion (19%) in 2020, and ₱4.11 billion (20%) in the first six months of 2022.

When looking at the overall amount paid out by the industry from the beginning of the pandemic in 2020 through 30 June 2022, life insurers come out on top with ₱11.72 billion in COVID-19-related claims paid, accounting for 56% of the total ₱20.82 billion. The HMO sector, with ₱7.65 billion in payments (36% of the total), came in second. Meanwhile, the MBAs paid 5%, or ₱896.80 million, and the non-life insurers paid 3%, or ₱560 million.


2020 to Q2 2022  Industry Claim Comparison 

The largest portion of claims linked to COVID-19 in 2020 was paid by HMOs at ₱1.91 billion.  Next is the life insurance sector with ₱1.47 billion. Meanwhile, the MBA industry contributed ₱355 million, and the non-life insurance industry contributed ₱160 million.

Claims relating to COVID-19 cost the life insurance industry amounted to a whopping ₱7.59 billion in 2021. The HMO sector, which paid ₱4.53 billion in 2021, comes in second. The payments made by MBAs were ₱478 million, while those made by non-life insurers totaled ₱222 million in the same year. 

The life insurance industry, still first in line, paid out a total of ₱2.66 billion in claims connected to COVID-19 between January and June of 2022. Secondly, at ₱1.21 billion, is the HMO sector. ₱178 million was the total paid out by non-life insurers and ₱64 million was paid out by MBAs in benefits relating to COVID-19.


Continuous Growth Despite COVID-19 Claims

Insurance Commissioner Dennis Funa gives the assurance that “While COVID-19 claims paid by our regulated entities amounting to ₱20.82 billion as Q2 2022 remain substantial, this has minimal impact to said industries’ growth. The ₱4.11 billion paid by the life and non-life insurance sectors in Q2 2022 constitutes a mere 6.76% of the ₱60.78 billion total benefit payments that they made during the same period. Despite this payout, the insurance industry remains stable as growth parameters showed positive performance year-on-year. Insurance industry assets are now more than ₱2 trillion, as it increased by 12.21% between Q1 2021 and Q1 2022, while the industry’s net worth also grew by 24.27% to ₱393 billion during the same period. Meanwhile, the aggregate paid-up capital and guaranty fund of the insurers and MBAs also expanded by 9.75% year-on-year to ₱75.90 billion.”


Furthermore, he says, “While it may be arguable that COVID-19-related claims only account for a small portion of benefits paid by our regulated entities, the impact of these benefit payments was undoubtedly felt by our fellow Filipinos especially when they needed these benefits.” 


Source: insurance.gov.ph