Total premium income of the insurance sector in the Philippines surged 12.4 percent to 8.1 billion euros, or nearly three times higher than the previous year’s growth, according to the 2025 Insurance Report released by Allianz Philippines on Tuesday.
The strong performance was powered by a rebound in life insurance, which posted a 13.4-percent increase after two consecutive years of contraction.
Life insurance now accounts for nearly 70 percent of the domestic market, while the property and casualty (P&C) segment also showed sustained momentum, growing by 10.5 percent in 2024, up from 8.6 percent the year before.
Health insurance premiums rose 10.5 percent, normalizing after a dramatic 72.1 percent spike in 2023, but still representing only around 5 percent of the market.
Allianz expects this trajectory to continue, with the Philippine insurance market expected to grow at an annual rate of 9.2 percent through 2035, well above the country’s forecast nominal GDP growth of 8.1 percent.
This positions the country as one of the most dynamic insurance markets in Asia.
All key segments are expected to expand strongly in the Philippines, with life insurance expected to grow by 9.5 percent annually, supported by rising incomes, greater financial awareness, and the push for private retirement planning amid demographic shifts.
P&C insurance is expected to expand by 8.3 percent annually, nearly doubling the global average of 4.5 percent, as businesses and households seek stronger protection against physical and economic risks.
Health insurance is expected to post a growth of 9.7 percent annually, making it the fastest-growing segment, driven by gaps in public healthcare and increasing demand for private health solutions.
Globally, Asia, particularly outside Japan, will continue to lead premium growth across segments.
The Philippines stands out within this high-growth region for its consistent double-digit trajectory and strong performance across life, P&C and health, the report said.
Allianz Research noted that the rising demand for protection is a global phenomenon, but in countries like the Philippines, where economic development is rapidly improving access and awareness, insurance growth is poised to accelerate even further.
