MicroInsurance Philippines | Microinsurance Premiums and Contributions Rose 14.87% Year-on-year (Q1 2022) | As of the first quarter of 2022 (“Q1 2022”), the total premiums or contributions collected by microinsurance providers, particularly mutual benefit associations (“MBAs”) and life and non-life insurance companies, reached ₱2.65 billion. This data is based on unaudited “QRSFS” (Quarterly Reports on Selected Financial Statistics). The sum shows an increase 4.87% from the previous year (Q1 2021), which totaled ₱2.31 billion.
59.20% of all premiums or contributions were from MBAs, totaling ₱1.57 billion. Meanwhile, life insurers contributed 28.27% or ₱749.96 million, and non-life insurers contributed 12.53% or ₱332.38 million.
Providers of microinsurance were able to cover an estimated 44.81 million people in the first quarter of 2022. Of the 44.81 million projected lives covered by microinsurance products, 57.45%, or 25.74 million, are covered by MBAs. The life and non-life insurance sectors accounted for 33.36% and 9.19% of the market share, respectively, or 14.95 million and 4.12 million lives microinsured, respectively.
As of the first quarter of 2022, there are a total of forty-eight (48) companies offering microinsurance products, including 23 MBAs, 11 life insurers, and 14 non-life insurers.
Compared to the ₱2.31 billion in premiums collected in the first quarter of 2021, the microinsurance sector’s total contribution or premium output climbed significantly by 14.87% this year, according to the aforementioned unaudited QRSFS.
Furthermore, the report states that “It is likely that the continued relaxation of community quarantine protocols, taken together with the increasing awareness of the public of the importance of having affordable insurance products, led to the 14.87% increase in premium or contribution production. We have also observed that the lingering adverse economic impact of the pandemic at the micro level may have contributed to this increase, as those who availed microfinance or credit transactions were able to avail of the bundled microinsurance products.”
Microinsurance premiums generated by the non-life insurance industry jumped by an astounding 38.93% year-on-year, from ₱239.25 million to ₱332.38 million. Microinsurance contribution output in the MBA sector increased from ₱1.37 billion in Q1 2021 to ₱1.57 billion in Q1 2022, a year-over-year increase of 14.58%. And the life insurance industry saw a 7.22% growth from ₱699.45 million in 2021 to ₱749.96 million in 2022.
However, the total number of lives covered by microinsurance products fell from 46.97 million in Q1 2021 to 44.81 million in Q1 2022, a decline of 4.60% year over year.
Statistics show that between Q1 2021 and Q1 2022, the number of estimated lives insured by the MBA sector decreased by 11.99%, from 29.25 million to 25.74 million, while those covered by life insurance climbed by 7.34%, from 13.93 million to 14.95 million. Those of the non-life insurance sector also increased from 3.79 million to 4.12 million, a growth of 8.51%.
Q1 2022 Rankings
As of the first quarter of 2022, CARD Mutual Benefit Association, Inc. has the highest estimated number of lives covered by microinsurance of any business management association. The next four MBAs in order are the Tulay sa Pag-unlad Mutual Benefit Association, Inc. (2nd); Alalay sa Kaunlaran (ASKI) Benefit Association, Inc. (3rd); Nueva Segovia Consortium of Cooperatives MBA, Inc. (4th); and CCT Mutual Benefit Association, Inc. (5th).
With regards to the estimated number of lives covered by life insurance companies as of the first quarter of 2022, the following topped the list: Pioneer Life, Inc. (1st); CLIMBS Life and General Insurance Corporation (2nd); United Coconut Planters Life Assurance Corporation (3rd); 1 Cooperative Insurance System of the Philippines (4th); and Country Bankers Life Insurance Corporation (5th).
Non-life insurance providers were also ranked in terms of number of coverage in the first quarter, and these are the top five entities: Pioneer Insurance & Surety Corporation (1st); CARD Pioneer Microinsurance, Inc. (2nd); Alpha Insurance & Surety Corporation (3rd); Visayan Surety & Insurance Corporation (4th); and The Mercantile Insurance Company, Inc. (5th).
As of Q1 2022, CARD Mutual Benefit Association, Inc. produced the most microinsurance contributions in the MBA industry. The next four MBAs in order are the Pag-Asa ng Pinoy MBA, Inc. (2nd); Tulay sa Pag-unlad Mutual Benefit Association, Inc. (3rd); Simbag sa Emerhensiya Asin Dagdag Pasegurohan MBAI (4th); and Alalay sa Kaunlaran (ASKI) Benefit Association, Inc. (5th).
Meanwhile, the following companies in the life insurance industry had the highest microinsurance premium production: CLIMBS Life and General Insurance Cooperative (1st); Pioneer Life, Inc. (2nd); United Coconut Planters Life Assurance Corporation (3rd); 1 Cooperative Insurance System of the Philippines (4th); and Country Bankers Life Insurance Corporation (5th).
And as for the non-life insurance sector, the companies with the highest premium production by Q1 2022 are the following: CARD Pioneer Microinsurance, Inc. (1st); The Mercantile Insurance Company, Inc. (2nd); Pioneer Insurance & Surety Corporation (3rd); CLIMBS Life and General Insurance Cooperative (4th); and Alpha Insurance & Surety Company, Inc. (5th).