Philippine Life Insurance Industry Poised for Growth: The Philippine life insurance industry is set for significant expansion. GlobalData projects that net written premiums will grow from $5.8 billion in 2024 to $7.1 billion by 2028, representing a 5.4% compound annual growth rate (CAGR). The industry is likely to see a 3% increase this year, driven by economic recovery, an ageing population with rising life expectancy, and other factors.
Factors Driving Growth: The share of Filipinos aged 65 and above is expected to increase from 5.4% in 2023 to 6.1% by 2028, fueling demand for life insurance and pension products. The country’s real GDP grew by 5.6% in 2023, with further growth projected at 6.1% in 2024 and 6.3% in 2025. A strong labor market and recovery in tourism and financial services also support the industry. Additionally, foreign currency – denominated life insurance products, especially in US dollars, have gained popularity among Filipinos due to potential currency appreciation and higher interest rates compared to peso – denominated investments. Insurers have responded by introducing investment – linked life insurance policies in US dollars.
Regulatory and Technological Impacts: Regulatory developments are contributing to growth. In April 2024, the Cebu provincial government launched the Sugbo Segurado plan for government officials and employees. The Philippines is also considering easing regulations for Overseas Filipino Workers (OFWs) to improve their access to life insurance. Overall, the outlook for the life insurance industry is positive, driven by demographics, regulatory changes, and technology adoption. However, meeting the insurance needs of the aging population will be a key focus for insurers in the next five years.
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