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!

THE appointment of Markus Lacanilao as the new chief of the Land Transportation Office (LTO) in October 2025 has been met with cautious optimism from many quarters. The LTO, an institution essential to the daily movement of millions of Filipinos, has long faced challenges relating to operational bottlenecks, legacy systems and public trust. Lacanilao’s entry into the agency brings with it not just new leadership but an opportunity to recalibrate priorities and strengthen long-standing processes. Coming from a career as ambassador and special envoy for transnational crime, Lacanilao arrives with experience in cross-border coordination, policy implementation and system integrity — skills that naturally translate into the complex regulatory environment of the LTO. His background suggests a leader accustomed to navigating sensitive issues requiring both firmness and diplomacy. This may explain why, in just his first weeks, he has managed to take decisive steps while still maintaining constructive relationships with stakeholders. One of his earliest actions — placing four regional directors from National Capital Region, Regions 2, 4B and 12 on administrative removal due to allegations of irregularities — was a clear signal of his intent to strengthen internal accountability. Yet, what stands out is that these developments did not lead to public discord within the organization. Instead, they were accompanied by supportive statements from several industry groups, suggesting that the reforms were broadly viewed as part of a sincere effort to reinforce professionalism within the LTO. Focus on systems strengthening Lacanilao’s first 45 days indicate a management style that emphasizes systems improvement and interagency collaboration. His signing of a MOA with the Bureau of Customs to create an automated and integrated framework for monitoring the importation of high-end and luxury vehicles is a forward-looking step. Such initiatives, if effectively implemented, can reduce administrative burdens while helping ensure that only properly documented vehicles reach Philippine roads. Similarly, his efforts to address “no-shows” in licensing and registration processes, and to minimize informal “payola” practices, demonstrate a consistent alignment with ensuring transparency and predictability in agency transactions. The reported reduction in extortion affecting colorum public utility vehicles is another positive development that aligns with broader government efforts to level the playing field for legitimate operators. These actions, taken together, suggest an early reform direction focused not on dramatic overhauls but on strengthening foundational processes — an approach that tends to create more sustainable impacts. A good example of Lacanilao’s balanced approach is his decision to delay the impounding of e-bikes and e-trikes on major roads until Jan. 2, 2026. With growing public concern and confusion around the enforcement of this policy, the temporary deferment gave regulators, local government units and the public more time to clarify rules and ensure that implementation would be both fair and well understood. This gesture reflects a willingness to listen and adapt — an important quality for any leader in a highly visible agency like the LTO. Constructive partnership: CTPL and nonlife insurance industry Among the sectors closely watching Lacanilao’s administration is the nonlife insurance industry, which plays an integral role in the system of compulsory third party liability (CTPL) insurance required for motor vehicle registration. Over the years, insurers have expressed a desire to collaborate more closely with the LTO to address operational gaps relating to CTPL issuance, monitoring and data integration. Challenges such as fake policies, inconsistent verification systems and duplicative issuance have persisted largely because technology and processes have not evolved at the same pace as the needs of motorists and insurers. The industry is hopeful that under Lacanilao’s leadership, the LTO might prioritize system modernization, digital integration and stronger safeguards — changes that would benefit not just insurers but also vehicle owners who rely on valid CTPL protection. Importantly, the tone coming from insurance stakeholders is collaborative rather than critical. Many believe that Lacanilao’s early emphasis on transparency and modernization creates a conducive environment for constructive engagement. The opportunity now is for the LTO and the insurance sector to jointly explore reforms that improve efficiency, discourage fraud and provide motorists with a smoother, clearer CTPL experience. Chance to build long-term institutional confidence While it is still early in his tenure, Markus Lacanilao’s leadership so far has shown a blend of decisiveness and diplomacy. His actions signal a desire to strengthen systems rather than merely disrupt them, and to engage stakeholders rather than sideline them. These qualities are particularly important in a regulatory agency whose success relies heavily on coordination with industry groups, local governments and law enforcement partners. If he continues to pursue reforms in a manner that is consultative, transparent and data-driven, Lacanilao has the potential to lead the LTO into a period of renewed credibility and institutional stability. For sectors like nonlife insurance that have been eager for modernization and clearer regulatory alignment, his early days in office provide a promising foundation for meaningful collaboration. As with any new leader, the real test will be in the long-term consistency of reforms. But for now, the path appears constructive, and the hope for continued positive engagement remains strong. Source: www.manilatimes.net

25-28 November 2025 Industry and IC combined Delegation

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 government units, which increased 2.6 times from 2014 until 2024. The PIDS report also found that the out-of-pocket spending between 2014 and 2024 also rose by 1.6 times. According to the Philippine National Health Accounts, Filipino households’ out-of-pocket expenses amounted to PHP615.16bn in 2024. This represented an 11.8% increase from the PHP550.08bn posted in 2023. The new data translates to roughly PHP12,000 per Filipino, an increase from about PHP3,000 in 2000. The report says that out-of-pocket expenses continue to remain high, even though 95m citizens are already enrolled in the country’s national health insurance system. To ease this burden, PhilHealth plans to cut out-of-pocket medical expenses by up to 25% in three years, however, this can happen only if the government increases health spending. Source: www.asiainsurancereview.com

THE invitation to the private nonlife insurance industry to join what has been a historically government-dominated terrain of agricultural risk is not just timely — it is essential. In the Philippines, the agricultural insurance sector has long been shouldered by the Philippine Crop Insurance Corp. (PCIC). But the government’s recent move to open the field to private insurers signals a paradigm shift — one that offers industry, farmers and the nation alike a meaningful chance to partner in resilience, modernization and inclusive growth. Agriculture in the Philippines is far more than planting rice or corn. It spans high‐value crops, poultry and livestock, fisheries and aquaculture, even forestry and forest products. And it reaches beyond primary production: planting, harvesting, storage, processing, packaging, logistics and market distribution. All these elements of the value chain carry risk — and each one is an opportunity for innovative coverage and deeper private sector involvement. The literature shows that agricultural insurance should cover not only weather, pests and diseases, but also price volatility, input disruptions, labor or institutional risks. Given this breadth, the opening of private-sector participation is welcome. PCIC, though an indispensable institution, cannot alone reach the magnitude and diversity of risks across the sector. One recent study points out that PCIC “has limited resources to provide insurance protection to the more than 50 percent of the Philippine population involved in agriculture, fisheries and forestry activities.” In short: private nonlife insurers bring underwriting capacity, product innovation, distribution reach and, crucially, access to reinsurance markets. By showing up in this space, the nonlife insurance industry can help de-risk the agricultural sector. This is not just jargon: risk reduction implies that farmers, fisherfolk and agribusinesses can obtain confidence, credit and investment. When insurance is credible, it becomes an enabler of financing. A recent review cites how crop insurance “facilitates credit access especially in formal lending institutions like the Land Bank of the Philippines.” That matters in a country where agriculture employs a large share of the workforce, yet receives only a meager proportion of formal loans — despite its critical role in food supply and exports. In stepping into agricultural insurance, nonlife insurers will become key partners in the modernization of Philippine agriculture. Insurance coverage stimulates investment in mechanization, technology, good agricultural practices and supply chain upgrades — because the commercial risk becomes more manageable. Yet beyond investment, there is a national imperative: resilience. The Philippines is among the world’s most climate-vulnerable nations, facing typhoons, floods, droughts, pest invasions, and more. Insurance is not the whole answer, but it is a vital part of the toolkit — helping guard against catastrophic losses, stabilizing incomes, preventing debt traps, and thus protecting food security. From a regulatory and market-development perspective, the time is ripe. Inclusive reforms have been under way. For example, the government has advanced legislation (e.g., the pending House Bill 7387) that would expand PCIC’s mandate and encourage private-sector participation. The Insurance Commission has published guidelines for a regulatory sandbox allowing commercial insurers to underwrite agricultural risk in collaboration with PCIC. And the World Bank, via its policy note, emphasizes three stumbling blocks: product relevance, operations and institutional environment — each of which private insurers are well-placed to address. Given this backdrop, what does private nonlife insurance participation look like in practice? First, product innovation. Index-based insurance (weather, area yield) that reduces cost of claims assessment and speeds payout is an emerging frontier in the Philippines. Private insurers can partner with PCIC and crop/fisher research institutions to co-develop these products. Second, diversification of lines: beyond staple crops to include aquaculture, livestock, high-value crops, forestry, storage assets, transport logistics and market linkages. Third, leveraging data and technology: remote sensing, satellite weather data, crop modelling all enhance risk assessment. Fourth, credit linkages: insurers can collaborate with banks to structure bundled finance-plus-insurance offerings that unlock capital for modernization. For nonlife insurers, this is a growth opportunity aligned with national impact. Agriculture expands the business horizon beyond traditional motor, fire and liability lines. As the sector scales and modernizes, the market for risk-transfer will grow. And from a corporate-citizenship perspective, insurers become partners in our national agenda: climate adaptation, food security, rural development and inclusive economic growth. Of course, there are challenges. Penetration today remains low: one estimate indicates that two-thirds of the country’s farmers are unprotected. Premium subsidies must be directed effectively, operations must improve (paper-based to digital), data infrastructure must be strengthened. But these challenges represent opportunity — opportunities for insurers to lead, not wait. The collaborative model — public-private partnerships — has been shown in other countries to scale effectively. In conclusion: the initiative of the Philippine nonlife insurance industry to enter the agricultural insurance space is more than a business expansion. It is an investment in national resilience, in the livelihoods of farmers, in modernizing a core sector of the economy and in protecting our food supply for generations. With the support of PCIC, the World Bank, and global reinsurers and insurance partners, this “new frontier” is ready to be explored. The industry has the expertise, the tools and now the regulatory openness to make a meaningful difference. I believe strongly that we must seize this moment — not only to grow our portfolios but to grow the Philippines. Source: www.manilatimes.net

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 for a reasonable period after the occurrence of the disaster. Provide the necessary support to claimants for the processing of claims. Ensure that damage assessments are properly assessed and recognised on official records to facilitate immediate settlement of claims. Coordinate with local government units and other government agencies providing relief and rehabilitation operations to ensure that claimants are provided necessary assistance. The circular comes on the heels of President Ferdinand Marcos, Jr.’s declaration of a state of calamity in the wake of typhoon Tino. Source: asiainsurancereview.com

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. Contributions from mutual benefit associations (MBAs) also grew by 2.86% to PHP12.57bn. Premium growth continued to be driven by both traditional and variable life insurance, which expanded by 9.7% and 16.0%, respectively. Insurance Commissioner Reynaldo A. Regalado said, “The accelerating growth in total premiums and other key indicators underscores not only the increasing trust in the insurance sector’s role in economic resilience, but also the rising awareness among Filipinos of the importance of financial protection.” Source: www.asiainsurancereview.com