INSURANCE penetration in the Philippines improved to 1.78 percent in 2025 from 1.67 percent a year earlier, driven largely by growth in the life sector, according to the Insurance Commission.
Insurance density — measured as average premium per capita — reached an all-time high of P4,384.56 in 2025, up from P3,894.03 in 2024, reflecting increased spending on insurance products.
Of the 1.78 percent insurance penetration rate, life insurance accounted for 1.44 percentage points, underscoring the segment’s dominant contribution to overall industry growth.
Preliminary data as of Jan. 29, 2026, showed that the life insurance sector’s total assets rose 8.54 percent to P2.09 trillion in 2025 from P1.93 trillion a year earlier.
Despite an 8.19 percent increase in total liabilities, industry net worth grew at a faster pace of 10.58 percent to P310.72 billion from P280.99 billion in 2024. Total net income climbed 15.11 percent to P46.32 billion in 2025 from P40.24 billion previously.
Total premiums increased 14.54 percent to P403.21 billion in 2025 from P352.02 billion in 2024, indicating continued demand for insurance coverage.
The life insurance sector accounted for 80.77 percent of the P499.23 billion in total premiums paid to the entire industry last year. Life insurers also paid out P121.88 billion in benefits in 2025.
In a statement, Insurance Commissioner Reynaldo A. Regalado said the continued rise in premiums and net worth signals positive momentum heading into 2026.
“Insurance continues to provide a vital safety net, protecting Filipino families and businesses alike,” Regalado said, adding that the commission will pursue financial literacy and inclusion programs alongside strengthened regulatory supervision to further broaden access to insurance coverage.
Lack of awareness
Meanwhile, industry players said awareness remains the biggest hurdle to expanding life insurance coverage.
In an interview, Jennifer Santos, vice-president for agency growth and national sales director at Prulife UK, said many Filipinos still do not fully appreciate the value of life insurance.
“Not everyone believes that life insurance is important. Not everyone knows how important it is,” she said.
“It usually takes an experience — a death in the family, hospitalization or an accident — before people realize how important life insurance is,” Santos said. “Our challenge is to create awareness before an emergency happens.”
Despite being one of the country’s leading life insurers in terms of premium income, the company acknowledged that acceptance of life insurance remains low.
“There is no natural demand for life insurance,” she said, noting that financial planners often face multiple objections before securing client meetings.
While younger Filipinos have greater access to financial information through social media and digital platforms, converting awareness into actual policy purchases remains difficult.
“They may be more aware, but it still takes action to buy a policy and start protecting themselves,” she said.
In disaster-prone areas such as Cebu, financial preparedness is particularly critical, as calamities, illness and accidents can severely strain household finances, especially for families without safety nets.
“What is important is to be prepared,” she said. “We don’t know when something will happen, but having coverage helps cushion the financial impact.” / KOC