The insurance sector in the Philippines remains smaller compared to other financial services, despite showing growth in both establishments and revenues, according to data from the Philippine Statistics Authority (PSA).
In 2022, the industry generated total revenues of $8.14 billion (₱466.82 billion), which represented 22.8% of the total revenue for the financial and insurance activities sector. This is a slight increase from the previous year, reflecting the sector’s steady expansion alongside other financial services.
According to the PSA’s preliminary data, there were 1,830 insurance establishments operating nationwide, making up 4.3% of the total financial and insurance sector. This modest increase in the number of insurance companies indicates gradual development within the industry.
Revenue and Expenses
While the insurance sector saw revenues of $8.14 billion in 2022, it also reported expenses totaling $6.61 billion (₱379.01 billion). This accounted for 27% of the sector’s total expenses. The industry’s revenue-expense ratio, a measure of profitability, stood at 1.23, which is lower than the overall financial sector’s ratio of 1.46. This indicates that while the insurance industry is profitable, it is not as robust as other financial services in terms of generating surplus revenue.
Employment and Regional Distribution
In terms of employment, the insurance industry provided jobs for 24,383 workers in 2022, accounting for 6.5% of the total workforce within the financial and insurance sector. The National Capital Region (NCR) dominated in both employment numbers and revenue generation, underscoring its significance as the hub of the country’s insurance activities.
Insurance Sector’s Role in the Economy
Despite its relatively smaller size, the insurance sector continues to play a vital role in the Philippine economy. The industry contributes to job creation and supports overall economic activity, although it remains overshadowed by other financial services that dominate the sector.
As the insurance market gradually grows, its importance in providing financial security and risk management services to individuals and businesses is expected to continue expanding, helping support broader economic resilience.
(Exchange rate: $1.00 = ₱57.34)
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