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MANILA, Philippines — Insurance premiums in the Philippines could expand by nine percent over the next 10 years to reach P1.3 trillion in 2035, Munich-based Allianz SE said.
In its latest Global Insurance Report, the compound annual growth rate (CAGR) of insurance premiums in the country is expected to be at 9.2 percent this year until 2035.
Such a growth rate would result in premiums hitting 21.4 billion euros or roughly P1.34 trillion. As of end-2024, premiums rose to 8.1 billion euros or P508.27 billion, driven by the recovery of the life insurance sector.
The country’s CAGR is also seen surpassing the global average of 5.3 percent.
Broken down, Allianz said the life segment would likely expand by 9.5 percent yearly to 15.1 billion euros or P947.51 billion, driven by the need for private provision in the face of accelerating demographic change.
The non-life segment, on the other hand, could grow by 8.3 percent to 5.2 billion euros or P326.29 billion as the increasing need for protection is a global phenomenon.
Allianz chief economist Ludovic Subran said that insurance remains a growth industry, largely fueled by policy inaction.
“Underinvestment in adaptation is leading to increasing climate damage, while delayed pension reforms are requiring higher savings efforts from individuals. In the long term, however, the private insurance industry cannot shoulder the burden of acting as society’s repair shop,” Subran said.
Further, Allianz warned that geopolitical uncertainties and trade tensions may weigh on insurance volumes through weaker economic growth, trade slowing down and higher credit and market risks.
On the other hand, one of the world’s leading insurers and asset managers said that a protection effect could also be visible as companies demand more risk management solutions amid an uncertain environment.
In the longer term, Allianz said financial fragmentation and weakening international cooperation including on climate, cyber or pandemic preparedness could increase the cost of insuring these risks.
