By Michael F. Rellosa On January 27, 2026 , the world will again pause for an unusual ritual: the unveiling of the Doomsday Clock —a symbolic measure of how close humanity is to self-destruction. The Bulletin of the Atomic Scientists’ Science and Security Board , joined this year by Nobel Peace Prize laureate Maria Ressa , will announce the new setting and explain why the world is—or is not—moving closer to midnight. The question being asked is simple and unsettling: Will we be closer to midnight? But for those of us in the Philippine insurance and reinsurance industry, the deeper question is this: What does a world moving closer to catastrophe mean for protection, resilience, and national stability—especially for a country as exposed as ours? The Clock Is Not Just Global—It’s Local In January 2025 , the Clock was moved to 89 seconds to midnight , the closest it has ever been. The Bulletin cited escalating nuclear risk, climate breakdown, biological threats, and the accelerating use of artificial intelligence in conflict and disinformation. To many, this sounds remote—concerns that belong to superpowers and international institutions. But the Philippines does not enjoy the luxury of distance from global volatility. Because in a world racing toward systemic risk, our exposure multiplies . And unlike wealthier nations, we are more vulnerable to shocks that ripple through supply chains, markets, food systems, energy costs, and migration. When global instability increases, the Philippines absorbs the impact faster—and recovers slower. The Doomsday Clock may be set in Chicago, but the consequences are felt in Tacloban, Cagayan, Bicol, and Zamboanga . What the Insurance Industry Must Understand We are used to working with risk—but we must accept this reality: the nature of risk is changing. The Doomsday Clock is not only about warheads and treaties. It is about a world where interconnected threats are converging: climate instability, geopolitical tension, emerging technology, and weakened public trust. For the Philippine insurance and reinsurance sector, this means three things: Catastrophe is becoming more frequent and more complex Losses are increasingly systemic, not isolated Protection gaps are becoming national security vulnerabilities In other words: when a country is underinsured, it is not only economically fragile—it becomes politically and socially fragile as well. We must stop thinking of insurance merely as a financial service. In a world nearing midnight, insurance is a resilience infrastructure. The Protection Gap Is a National Risk In my New Year message, I wrote that insurance is not simply a business—it is a promise, a social mechanism, and a stabilizing force . That is not rhetorical flourish. It is a practical truth. Because when disasters strike—and they will—insurance determines whether a family rebuilds or falls into poverty. Whether a business reopens or closes permanently. Whether a community recovers quickly or remains dependent on aid for years. And yet, we continue to face an uncomfortable fact: too many Filipinos remain uninsured or underinsured. This is the protection gap , and it is widening in dangerous ways. In an era of intensified disasters and cascading crises, an uninsured population is not merely a market opportunity—it is a national vulnerability. The Doomsday Clock and the Risk of “Cascading Failure” The Bulletin’s warning is not simply that any single catastrophe could happen. It is that the world is approaching a threshold where multiple crises compound each other , overwhelming systems. Insurance professionals understand this concept well: the difference between a manageable loss and a catastrophic loss is often not the event itself, but whether systems can absorb it. Consider what happens when: climate-driven disasters disrupt food and power supply, geopolitical conflict raises commodity prices, disinformation accelerates panic and destabilizes governance, and AI-driven cyber incidents cause financial and operational breakdown. That is not science fiction. Those are cascading failures . And this is exactly what the Doomsday Clock is trying to signal: that humanity is nearing a point where our interconnected systems—political, ecological, economic, digital—may fail faster than we can respond. What PIRA and the Industry Must Commit To If the Clock moves closer to midnight on January 27, our response should not be despair. It should be discipline and purpose. The Philippine insurance industry must commit to five urgent priorities: Close the protection gap through inclusive products Microinsurance, parametric solutions, agriculture and SME protection, catastrophe covers—these must become mainstream, not marginal. Strengthen catastrophe modeling and reinsurance capacity We must price risk accurately, invest in data, and ensure solvency for larger shocks. Modernize claims and make trust visible Trust is not built through messaging—it is built at claim time, when policyholders are most vulnerable. Treat cyber risk as a national resilience issue AI-driven threats and systemic cyber disruption are rapidly becoming insurable events of national consequence. Partner with government and regulators for resilience ecosystems The public does not experience risk in silos. Neither should our protection systems. Midnight Is Not a Metaphor for the Philippines For some nations, the Doomsday Clock is symbolism. For the Philippines, existential risk is already familiar. We experience it every typhoon season. Every flood. Every earthquake. Every disruption that erases livelihoods and reorders lives overnight. So when the world asks, “Are we closer to midnight?” we should answer with clarity: We are already living in the hour where resilience determines survival. Our task—our duty as an industry—is to ensure that when crises come, fewer Filipinos face them alone. And if the Clock moves closer this year, then let it also move us—toward a stronger insurance culture, deeper national resilience, and a clearer sense of what our industry was built to do. Because if midnight is approaching, then insurance is not just protection. It is preparedness. It is recovery. It is national stability. And it is time we fully stepped into that role. Source: manilatimes.net

Philippine President Marcos has signed the country's PHP6.793tn ($121.3bn) national budget for 2026, restoring government subsidy to the state insurer, the Philippine Health Insurance Corporation (PhilHealth). The signing was held on 5 January at Malacañang Palace. Of the total, PHP129.8bn was allocated to strengthen the state insurer, including PHP60?bn that had been wrongfully remitted to the national treasury following a Supreme Court ruling. In 2025, the state insurer received no government subsidy after lawmakers scrapped the proposed PHP74bn allocation due to its sizeable reserves. “These funds shall support preventive healthcare and the improvement of PhilHealth benefit packages, lowering the out-of-pocket expenses of Filipino families,” the President said. Source: www.asiainsurancereview.com

By Michael F. Rellosa - Executive Director Christmas Day has passed, but the season remains—and perhaps this quiet stretch between the holidays and the New Year is where its meaning settles deepest. This is the time when families return to work, businesses prepare their next moves, and many Filipinos begin to think again about what the year has brought: the joys, the hardships, and the uncomfortable truth that no matter how hard we work, certain risks remain beyond our control. For the Philippines, that truth is not abstract. We live with typhoons, floods, earthquakes, fires, health threats, economic disruptions, and increasingly, digital risks. We experience uncertainty in ways that can undo years of progress in a matter of hours. Every year, the list of vulnerabilities grows, and the consequences become harder to ignore. That is why this moment is important for the Philippine insurance industry. Because insurance is not simply a business. It is a promise. A social mechanism. A stabilizing force. And in a country as exposed as ours, it should be one of the strongest pillars of resilience we can offer. Yet if we are honest with ourselves—as leaders, professionals, and stewards of this industry—we know there is still work to be done. The protection gap remains wide. Too many Filipinos remain uninsured or underinsured. Trust, while improving, remains fragile. And some who do have coverage still experience insurance as complicated, slow, or distant from their real needs. This is not a season for blaming. It is a season for reflection—and then for action. The Role We Were Built For Insurance exists because a society accepts a moral and practical truth: people should not face catastrophe alone. When done well, insurance enables families to recover with dignity. It allows businesses to rebuild and keep workers employed. It helps communities stand up again after disasters. And it reduces the long-term dependency that often follows emergencies, especially among those already struggling. If this is our mission, then our success cannot be measured only by premiums, profits, or market share. Those are important indicators—but incomplete. Our true scorecard is much larger: Did we expand access meaningfully? Did we strengthen trust in our systems? Did we pay claims fairly, clearly, and promptly? Did we make protection understandable, not intimidating? Did we help the country become more prepared—not merely more insured? These are the questions a New Year should ask of an industry like ours. A Word to Our Stakeholders To insurers and reinsurers: we are underwriting the future. Discipline and solvency must remain non-negotiable—but so must our willingness to design solutions that meet people where they are, not only where profitability is easiest. Sustainable growth and social relevance must no longer be treated as competing goals. To agents, brokers, and intermediaries: you remain the human face of this industry. You do not simply sell policies—you shape belief. When you educate ethically and recommend responsibly, you protect not only customers but the credibility of the entire sector. To claims teams and front-line service leaders: you carry the moment of truth. A claim is not a transaction—it is a policyholder’s crisis. In those moments, insurance becomes either a lifeline or a disappointment. How we show up then will determine whether people trust us again. To boards and investors: our long-term stability rests on public confidence. Every decision that prioritizes short-term gain over policyholder experience risks weakening the foundation that keeps this business viable. To regulators and association leaders: the public expects protection ecosystems, not fragmented processes. Collaboration, modernization, and consistent enforcement are not luxuries—they are expectations. To our technology and innovation partners: digital transformation must do more than speed up processes. It must widen the door. Innovation must make protection more accessible, more understandable, and more inclusive—especially to those who need it most. And to every professional across the industry—underwriters, actuaries, compliance teams, operations, finance, customer care—I want to say this plainly: You are part of one of the most consequential missions in Philippine society. Your work determines whether a family rebuilds—or breaks—after loss. Trust Is Our Greatest Asset Many industries compete for customers. The insurance industry must first earn belief. Trust is not built through marketing. It is built through clarity, consistency, and lived experience—especially at claim time. It is built through transparency in what is covered and what is not. It is built by rejecting unethical practices wherever they exist. It is built by making insurance simple enough for people to understand, and fair enough for people to embrace. If we want to spur a healthier insurance culture in the Philippines, we must treat trust as our most important asset—because without it, insurance is only paper. The Opportunity of the New Year The Philippines will not suddenly become less exposed to risk. If anything, exposure will grow. But we can decide that the nation will not remain equally vulnerable. The coming year can be the year our industry deepens its purpose: becoming more transparent, more responsive, more inclusive, and more essential to national resilience. And if we do that—if we move beyond merely selling policies toward building real protection—then perhaps years from now we will look back and say: This was the season we stepped into the role we were meant to play. Not only as an industry, but as a pillar of national recovery and preparedness. That would be a worthy legacy for a New Year. Happy New Year everyone!

PIRA is the umbrella organization representing the collective interests of the non-life insurance industry in the Philippines since 1954. Promoting the growth and development of the non-life industry for 70 years Promoting the growth and development of the non-life industry for 70 years Promoting the growth and development of the non-life industry for 70 years Promoting the growth and development of the non-life industry for 70 years As the principal voice of the non-life insurance industry, PIRA works to advocate for policies and advance proposals that improve the ability of its members to conduct and grow business in the Philippines and increase the industry's effectiveness. 1/3 PIRA Updates 2025 CSR Conference and Expo Fostering Resilience: Engaging the Private Sector in Agriculture Insurance Insurance Hybrid Capital Assessment in the Philippines Our Member Companies To play, press and hold the enter key. To stop, release the enter key. Full list of members, click here .

Industry News President Marcos signs 2026 Budget, restores state insurer PhilHealth subsidy Philippine President Marcos has signed the country's PHP6.793tn ($121.3bn) national budget for 2026, restoring government subsidy to the state insurer, the Philippine Health Insurance Corporation (PhilHealth). The signing was held on 5 January at Malacañang Palace. Of the total, PHP129.8bn was allocated to strengthen the state insurer, including PHP60?bn that had been wrongfully remitted to the national treasury following a Supreme Court ruling. In 2025, the state insurer rec Jan 6 After Christmas, Before the New Year: A Call to Our Industry and Our Country By Michael F. Rellosa - Executive Director Christmas Day has passed, but the season remains—and perhaps this quiet stretch between the holidays and the New Year is where its meaning settles deepest. This is the time when families return to work, businesses prepare their next moves, and many Filipinos begin to think again about what the year has brought: the joys, the hardships, and the uncomfortable truth that no matter how hard we work, certain risks remain beyond our contro Dec 29, 2025 28th ASEAN Insurance Regulators' Meeting & 51st ASEAN Insurance Council Meeting in Siem Reap, Cambodia 25-28 November 2025 Industry and IC combined Delegation Nov 27, 2025 Out-of-pocket expenses continue to be high even as health insurance grows A new study in the Philippines has revealed that the total health spending in the country had reached PHP1.4tn ($23.81bn) in 2024, which translates to about 5% of the country's GDP. According to a news report published in the Philippine daily Inquirer, the study conducted by the Philippine Institute for Development Studies (PIDS) found that the public spending drove most of this growth through the Department of Health, the Philippine Health Insurance Corporation and local gov Nov 24, 2025 Regulator issues circular implementing measures to follow with state of calamity In a circular letter, the Insurance Commission (IC), the regulator of the Philippines, ordered all insurance companies and related entities to undertake the following measures whenever a state of calamity is declared in the country: Expedite the processing approval, and payment of claims for damage attributable to said disasters, including relaxation of company procedures and documentary requirements. Extend the period for submitting claim notices and other required documents Nov 21, 2025 Philippine insurance industry grows 13% in total premiums The Philippine insurance industry recorded a 13.25% increase in total premiums as of the third quarter of 2025, according to data from the Insurance Commission (IC). Total industry premiums reached PHP372.08bn ($6.41bn) by the end of September, almost PHP50bn higher than the same period last year. Life insurance premiums climbed 13.77% to PHP299.45bn from PHP263.21bn a year earlier, while the non-life segment rose 13.07% from PHP53.13bn in Q3 2024 to PHP60.07bn in Q3 2025. Co Nov 17, 2025 1 2 3 4 5 January 2026 (2) 2 posts December 2025 (3) 3 posts November 2025 (9) 9 posts October 2025 (14) 14 posts September 2025 (7) 7 posts August 2025 (16) 16 posts July 2025 (23) 23 posts June 2025 (18) 18 posts May 2025 (17) 17 posts April 2025 (22) 22 posts March 2025 (30) 30 posts February 2025 (15) 15 posts

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