COVID-19-related insurance payouts surged to PHP8.25bn ($165m) as of 30 June 2021, the Insurance Commission (IC) has announced.
The IC also reported that total COVID-19-related claim payouts reached PHP4.35bn from January to June 2021 alone, exceeding the total of PHP3.9bn for the whole of 2020.
"The figures provided show that the claims paid increased drastically from February to April and dipped slightly in June. This reflects the reported spike in COVID-19 cases in the Philippines between March and May which prompted the government to impose stricter quarantine measures during said months," Commissioner Dennis Funa was quoted as saying.
Health maintenance organisations (HMOs) accounted for the largest share of the payout with PHP3.98bn, or 48% of the total, according to a statement released by the regulator.
Life insurers were next, receiving PHP3.44bn, or 42%; mutual benefit associations (MBAs) came in third with PHP546.60m, or 7%; and non-life insurers accounted for the remaining PHP279.30m or 3%.
From the beginning of the pandemic early last year to the end of June 2021, COVID-19-related death benefit claims totalled PHP2.89bn. In-patient-related claims reached PHP2.65bn while out-patient-related benefits amounted to PHP1.81bn.
Business interruption claims
“Also worth mentioning is the fact that non-life insurance companies have paid PHP37.6m in business interruption claims due to the effects of business closures and the imposition of quarantine measures as a result of the COVID-19 pandemic,” Mr Funa said.
Despite the challenges and risks posed by the pandemic, as well as the significant increase in COVID-19-related claims, Mr Funa emphasised that life and non-life insurers, HMOs, and MBAs are financially resilient.
The IC surveyed 117 out of 147 life and non-life insurers, HMOs and MBAs to assess the impact of the COVID-19 pandemic on the industry.