The Insurance Commission (IC) has expressed optimism that the country's insurance density and penetration would improve on the back of financial literacy programmes and digitalization.
IC Commissioner Mr. Reynaldo A Regalado, in his keynote speech at the first Life Insurance Convention Philippines in Cebu City last week, said that while total assets, net worth, invested assets and premiums increased based on figures collated by the Insurance Commission as of the first quarter of 2023, the insurance density and insurance penetration remained low.
The country’s insurance density in 1Q2023 stood at PHP872.56 ($15.32) while the insurance penetration rate was 1.75%, reported the newspaper, Manila Standard.
However, referring to 1Q2023, he added, “I am optimistic that our efforts are bearing fruit, especially as total premiums collected by life insurance companies from their new business has increased to PHP15.47bn, or by 18.16% year-on-year.”
“To further promote financial inclusion, the Insurance Commission has also introduced digitalization programs such as the online submission and approval of new insurance products and is set to release the regulatory guidelines on Islamic insurance within the year.”