The Philippines faces a large insurance protection gap that continues to expand, leaving the vast majority of its population financially vulnerable to life and health risks. According to the Philippine Life Insurance Association (PLIA), over 98 percent of insurable risks across life and property remain unprotected—an exposure estimated to be worth ₱24 trillion, or roughly ₱1.17 million per household.
This deepening divide was brought to the fore in briefing financial journalists Tuesday, with insights from PLIA president Rahul Hora, PLIA director and BDO Life president and CEO Renato Vergel de Dios, and JP Yamsuan, associate director at NIQ Strategic Analytics.
PLIA emphasized that this protection gap, particularly pronounced in health insurance, should now be treated not just as a market challenge but as a matter of public policy. The association urged broader and more systemic solutions to ensure Filipino families are safeguarded against sudden and financially catastrophic events such as critical illnesses or unexpected deaths.
“The thing one needs to conquer the most is the realization that a life insurance policy is not for you but for someone else. It’s the most unselfish gesture that anyone can do for another,” said de Dios, underscoring the role of insurance as a lifeline for surviving family members, especially during health emergencies where treatment costs can easily reach millions of pesos.
While acknowledging recent industry efforts to design more inclusive and affordable health-focused products, Hora stressed that the core issue remains value for money. “Value for money is often lost,” he said, highlighting consumer hesitation driven by the perception that premiums don’t match the benefits provided.
Yamsuan, for his part, pointed out that the post-pandemic period revealed increased public awareness of the need for financial protection—but awareness has not yet translated into broad policy uptake. Misconceptions about insurance, coupled with affordability concerns and a lack of long-term financial planning, continue to widen the gap.
The protection gap in the Philippines also stands in stark contrast to regional neighbors. With an insurance penetration rate of only 1.2 percent, the country lags behind Vietnam (1.6 percent), Malaysia (3.7 percent), and Thailand (3.4 percent). In comparison, Singapore’s penetration exceeds 7.4 percent, well above the global average of 6 percent.
Experts argue that this growing disparity—driven by a mix of low financial literacy, an expanding but underinsured middle class, and inadequate health coverage—requires coordinated responses from government and the industry. Without bold action, the ₱24 trillion shortfall will continue to deepen, placing long-term national resilience at risk.
The industry continues to push for innovation in policy design and stronger public-private partnerships. But as Hora noted, the critical issue now is not just innovation—it’s urgency.
