Philippines insurance market seen reaching P230 billion by 2029

Amid rising disaster risks

MANILA, Philippines — The Philippine general insurance industry is poised for strong growth over the next four years, with gross written premiums projected to rise by nearly half, hitting P229.7 billion by 2029, driven by rising demand for coverage amid frequent disasters.

According to data and analytics company GlobalData, the market is estimated to hit P153.8 billion in gross written premiums by 2025 and is seen to hit a compound annual rate of almost 11 percent by 2029.

The projected insurance premium for 2025 could reflect a 9.6-percent increase from the previous year’s P140.3 billion in gross written premiums. By 2026, GlobalData estimates the figure will rise further to P169.1 billion.

Senior insurance analyst Swarup Kumar Sahoo said the industry’s sustained growth depends on how consumers adapt to the increasing frequency of climate-related disasters and the rise of microinsurance products.

“As the market continues to evolve, the focus on enhancing accessibility and inclusivity will be crucial in addressing the protection gap and fostering a resilient insurance landscape in the Philippines,” he said.

“Losses due to natural disasters and the expected reciprocal tariff from the US will change the dynamics and are expected to pose a threat to insurers’ profitability,” he added.

From 2020 to 2024, the Philippine general insurance industry showed a strong recovery and steady growth in gross written premiums after an initial downturn.

In 2020, it declined to P85.7 billion, reflecting a six-percent contraction likely due to the impact of the pandemic. The market bounced back in 2021 with P97.5 billion in premiums, marking a 13.7-percent increase.

A 9.8-percent growth was recorded in 2022 at P107 billion, followed by an 18.8-percent growth in 2023 at P127.1 billion.

The report highlighted that the current insurance penetration rate in the Philippines remains low at below 1.9 percent, underscoring a significant growth opportunity for the sector.

It noted that government initiatives aimed at improving disaster preparedness, along with increasing awareness of insurance products, particularly among low-income households, are key factors expected to drive higher market penetration.