With a recovering economy and greater awareness of insurance products amid a protracted pandemic, industry sales and profits increased in the first nine months of 2021, the Insurance Commission (IC) said on Friday. .
Total premiums earned, or insurance policies sold, by life and non-life insurers as well as mutual benefit associations (MBAs) from January to September rose 28.7 percent to 278.7 billion pesos up from 216.5 billion pesos a year ago, the IC said in a statement. declaration.
IC data showed industry-wide premiums at the end of September also exceeded the 224.9 billion pesos recorded in the first nine months of 2019, before the pandemic. Sales fell last year due to quarantine restrictions that impacted in-person transactions, but insurers were able to adapt quickly to the new standard imposed by COVID-19 as they used more in addition to digital channels to sell their products and services.
As such, the insurance industry’s overall net income soared 31% to 37.5 billion pesos from 28.6 billion pesos in the same nine-month period last year. Their net income at the end of September 2021 was also above the 31.7 billion pesos in 2019.
The stronger sales and earnings came despite also larger benefits that insurance companies had to shell out in the first nine months of 2021, in part due to COVID-19 claims.
The IC said the life, non-line and MBA industries paid out P $ 101.2 billion in benefits in September, a 45.1 percent jump from P $ 69.8 billion last year. Prepandemic benefit payments reached 78.1 billion pesos at the end of September 2019.
“Growth in the cumulative premiums and contributions of life and non-life insurers and earned MBAs and their cumulative net income in the third quarter of 2021 is indicative of an economic recovery amid the COVID-19 pandemic,” said the insurance commissioner Dennis Funa.
Gross domestic product (GDP) returned to an average growth of 4.9% during the period January to September, as more economic sectors were reopened after the most stringent COVID-19 lockdowns since the start of the pandemic last year, which in turn dragged the Philippines into its worst post-war recession in 2020.
The larger benefit payments, meanwhile, “highlighted the commitment and responsiveness of our insurers and MBAs to the needs of the insurer public despite the challenges posed by the COVID-19 pandemic,” said Funa. INQ
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