The Philippine insurance industry recorded more than PHP 500 billion in premiums in 2025, with the latest regulatory and market data showing growth in both life and general lines alongside a still-wide protection gap.

Life segment accounts for most industry premiums

Updated figures from the Insurance Commission (IC) show that total premiums written by the Philippine insurance industry reached PHP 502.64 billion in 2025, a 14.1% increase from PHP 440.53 billion in 2024. Life insurance remained the largest segment, accounting for just over four-fifths of total premiums. According to IC data as of Jan. 29, 2026, life insurance premiums rose 14.54% year-on-year to PHP 403.21 billion in 2025 from PHP 352.02 billion in 2024. The life sector represented 80.77% of the PHP 499.23 billion in total premiums paid to the industry. The remaining share of premiums came from non-life insurers and mutual benefit associations. The non-life segment contributed 16.41% of total premiums in 2025, while mutual benefit associations accounted for 3.37%, the IC reported.

Premium income exceeded benefit and claims payments during the period. Total benefits across the industry reached PHP 121.88 billion in 2025, while sector-wide net income rose 15.1% to PHP 64.79 billion. Within the life segment, net income grew 15.11% to PHP 46.32 billion from PHP 40.24 billion in 2024. Industry assets also increased. Total assets reached PHP 2.66 trillion in 2025, up 7.93%, with invested assets at PHP 2.38 trillion, an 8.01% rise. For life insurers, total assets stood at PHP 2.09 trillion, an 8.54% increase from PHP 1.93 trillion in 2024. Total liabilities for the life segment rose 8.19%, while total net worth expanded 10.58% to PHP 310.72 billion from PHP 280.99 billion.

Penetration and density improve but remain below targets

Insurance penetration and density both increased in 2025, although the Philippines continues to lag behind many Asia-Pacific markets on these measures. Overall insurance penetration rose from 1.67% in 2024 to around 1.78%–1.79% in 2025. Of this, life insurance accounted for 1.44 percentage points, reflecting the weight of long-term protection and savings products in overall coverage. The penetration level remains below the IC’s 2% target and below regional averages.

Insurance density, measured as premiums per capita, reached PHP 4,384.56 in 2025, compared with PHP 3,894.03 in 2024. For insurers and intermediaries in the region, the data point to a market where coverage is expanding but a significant share of households and businesses remains uninsured or underinsured. In a statement, the IC said: “Backed by effective regulation and strong collaboration across the sector, the insurance industry is poised to sustain its growth and expand its contribution to both economic development and the protection of lives, properties, and livelihoods of the Filipino people in the years ahead.”

Insurance Commissioner Reynaldo A. Regalado said recent indicators support expectations of further expansion into 2026. “The sustained increase in premiums and net worth highlights the industry’s positive momentum entering 2026. Insurance continues to provide a vital safety net, protecting Filipino families and businesses alike. Through the commission’s programs on financial literacy and inclusion, together with strengthened regulatory supervision, we aim to broaden access to insurance and achieve even greater protection for all Filipinos this year,” Regalado said.

General insurance outlook shaped by climate and catastrophe risks

The general insurance sector, while smaller than life, is projected to expand over the medium term, influenced by climate risk, catastrophe exposures, and digital distribution. Research from GlobalData projects that Philippine general insurance gross written premium (GWP) will grow at a compound annual growth rate (CAGR) of 10.6%, from PHP 153.8 billion (US$2.7 billion) in 2025 to PHP 229.7 billion (US$3.9 billion) by 2029. The general market is estimated at PHP 153.8 billion in 2025, implying annual growth of 9.6%. Swarup Kumar Sahoo, senior insurance analyst at GlobalData, said: “Heightened climate risks and digital transformation are reshaping the general insurance market in the Philippines. The government’s proactive approach to disaster response and the introduction of parametric insurance are crucial in addressing the protection gap, while digital initiatives are making insurance more accessible to underserved communities.”

Property insurance is projected to remain the largest general line, accounting for 39.5% of general insurance GWP in 2025. The Philippines experiences an annual average of around 20 storms and typhoons, and parametric products are being deployed to provide faster payouts to local governments, businesses, and households based on predefined triggers. Motor insurance, the second-largest class, is expected to account for 23.5% of general GWP in 2025 and to grow at a CAGR of 7.3% between 2025 and 2029. Regulatory measures, including proposed changes to required passenger coverage for private vehicles and policy adjustments related to electric vehicles, are likely to affect pricing and product structures. Marine, aviation, and transit business is forecast to represent 7.9% of GWP in 2025, supported by higher trade and port activity. Other lines, including financial, liability, and miscellaneous classes, are estimated to account for the remaining 29.2% of general premiums.

Protection gap and profitability risks remain in focus

Despite growth in premiums and insurance density, the country’s insurance penetration rate remains below 1.9%, indicating a large protection gap in both retail and commercial segments. Microinsurance, disaster-related government schemes, and programs targeting low-income households are expected to remain key channels for extending cover. GlobalData estimates a catastrophe protection gap of about 98% in the Philippines, compared with a global average of 58%, highlighting the extent of uninsured exposure to natural hazards.

Sahoo said: “The Philippines’ general insurance market will continue its strong performance during 2025–29. The increasing frequency of climate-related disasters and the rise of microinsurance products are expected to enhance insurance penetration and accessibility. As the market continues to evolve, the focus on enhancing accessibility and inclusivity will be crucial in addressing the protection gap and fostering a resilient insurance landscape in the Philippines. Losses due to natural disasters and the expected reciprocal tariff from the US will change the dynamics and are expected to pose a threat to insurers’ profitability.” For regional insurers, reinsurers, and brokers, the Philippine market combines premium growth, relatively low penetration, and rising climate-related risk. These factors may support ongoing demand for reinsurance capacity, risk-modelling capabilities, and new structures in property, catastrophe, and microinsurance programs, in line with wider Asia-Pacific efforts to address resilience and coverage gaps.