PH insurance market among Asia’s fastest-growing, Allianz says

Insider Spotlight

• Philippine insurance premiums grew 12.4 percent in 2024, outpacing global growth
• Life insurance rebounded strongly, rising 13.4 percent after two years of decline
• Allianz projects the Philippine insurance market to expand 9.2 percent annually through 2035
• Health and life insurance are expected to remain key growth drivers over the next decade
  
  

The Philippine insurance industry emerged as one of the fastest-growing markets in Asia in 2024, posting double-digit expansion as demand for protection products accelerated and life insurance staged a strong recovery, according to Allianz Research’s latest Global Insurance Report.

Total premium income in the Philippines reached €8.1 billion in 2024, representing growth of 12.4 percent from the previous year. Allianz said the performance was driven largely by a turnaround in the life insurance segment, which returned to growth after two consecutive years of decline.

 Henry Yang

Chief investment officer, AZPNBL

Why it matters

The Philippines’ growth rate exceeded the estimated 8.6 percent expansion of the global insurance industry, highlighting the country’s rising insurance penetration and increasing consumer awareness of financial protection products.

Life insurance premiums climbed 13.4 percent to €5.6 billion, accounting for nearly 70 percent of the local insurance market. Property and casualty insurance also maintained momentum, growing 10.5 percent, faster than the 8.6 percent recorded in 2023.

Health insurance premiums increased 10.5 percent, although the segment remains relatively small at around 5 percent of total premiums.

The big picture

Allianz expects the Philippine insurance sector to sustain its growth trajectory over the next decade. The company forecasts overall annual growth of 9.2 percent through 2035, above the country’s projected nominal GDP growth of 8.1 percent.

By segment, life insurance is projected to grow 9.5 percent annually, while health insurance is expected to expand 9.7 percent and property and casualty insurance 8.3 percent. 

Allianz estimates total Philippine insurance premiums will nearly triple from €8.1 billion in 2024 to €21.4 billion by 2035.

What they’re saying

“The Philippines stands out in this landscape: our market is projected to grow by around 9.6 percent annually, compared with nominal GDP growth of 8.3 percent. This underlines the increasing relevance of insurance to the country’s economic and social development,” Henry Yang, chief investment officer of Allianz PNB Life, said in a press statement.

“The smallest segment, health insurance, is set to remain the most dynamic, with global annual growth of 6.7 percent and about 8.3 percent in the Philippines … For the Philippine life insurance industry, this environment is both a challenge and a strategic opportunity: to close protection gaps, support long-term investment in the local economy, and help build financial resilience for Filipino families,” Yang added. —Vanessa Hidalgo | Ed: Corrie S. Narisma