Analysts at Allianz Research projects the Philippine insurance market growing 9.2 percent annually over 10 years to 2035—outpacing the country’s nominal GDP growth forecast of 8.1%. Life insurance is expected to rise 9.5 percent per year, supported by higher interest rates and rising demand for personal financial security amid demographic shifts. Property and casualty coverage is seen expanding 8.3 percent yearly, driven by greater need for risk protection. Health insurance will remain the fastest-growing segment locally at 9.7 percent annually, as the sector continues to catch up to global penetration levels. Globally, the industry is set to grow 5.3 percent annually, with most new premium value coming from Asia excluding Japan, while North America leads in property and casualty gains and the United States dominates health insurance growth.
Allianz chief economist Ludovic Subran noted that while insurance remains a high-growth industry, much of this demand stems from unaddressed policy gaps—including rising climate-related losses from insufficient adaptation and greater personal savings needs due to delayed pension reforms. He emphasized that the private sector alone cannot serve as society’s sole safety net, and that collaboration between public and private stakeholders will be essential to manage challenges from economic and social transformation.
The Philippine insurance sector recorded robust growth of 12.4 percent in 2024, bringing total premium income to EUR 8.1 billion—nearly triple the expansion rate seen the year before. This surge was led by a major turnaround in the life insurance segment, which rose 13.4 percent to EUR 5.6 billion after two years of decline and now makes up roughly 70npercent of the local market. Property and casualty insurance also grew steadily at 10.5 percebt, an improvement from 8.6 percent in 2023, while health insurance expanded by 10.5 percent. Health coverage remains a small part of the industry at only 5 percent of total premiums, following a sharp 72.1 percent jump in 2023.
The data highlights insurance as a key growth area in the Philippine economy, reflecting rising consumer awareness of financial and health security needs. The projections signal opportunities for investment and product development, while also pointing to gaps in social protection and climate resilience that require coordinated government and industry action.
