Life insurance - Philippines

Philippines

The Life insurance market market in the Philippines is set to achieve a remarkable milestone, with the projected market size (gross written premium) expected to reach US$8.64bn in 2024.
This demonstrates the significant growth potential of the industry within the country.
Furthermore, the average spending per capita in the Life insurance market market is anticipated to amount to US$72.51 in 2024.
This highlights the increasing importance of Life insurance market among individuals in the Philippines, as people recognize the value of protecting themselves and their loved ones financially.
Looking ahead, the gross written premium is projected to display a steady annual growth rate (CAGR 2024-2028) of 2.70%.
This positive trend is forecasted to lead to a substantial market volume of US$9.61bn by 2028.
This growth reflects the confidence and trust placed in the Life insurance market sector by both consumers and investors in the Philippines.
In a global context, it is noteworthy that the United States is expected to generate the highest gross written premium in 2024, reaching an impressive US$1,271.0bn.
This demonstrates the size and significance of the US market in the Life insurance market industry.
The promising growth and potential of the Life insurance market market in the Philippines further solidify its position as a key player in the global insurance landscape.
The life insurance market in the Philippines is experiencing significant growth due to increasing awareness and demand for financial protection among the country's growing middle class.

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Analyst Opinion

The Life insurance market in Philippines has been experiencing significant growth and development in recent years. Customer preferences in the Philippines are shifting towards more comprehensive life insurance coverage, including protection against critical illnesses and investment-linked policies. Customers are increasingly looking for personalized and flexible insurance products that cater to their individual needs and financial goals. Trends in the market show a rise in digitalization and online distribution channels, making it easier for customers to research, compare, and purchase life insurance policies. Insurers are also focusing on innovative marketing strategies and product offerings to attract a younger demographic and tap into the growing middle-class population in the country. Local special circumstances in the Philippines, such as the increasing awareness of the importance of financial planning and protection, have contributed to the growth of the life insurance market. The regulatory environment in the country has also been favorable for insurers, encouraging competition and product innovation. Underlying macroeconomic factors, such as steady economic growth, a rising middle-class population, and increasing disposable income levels, have provided a conducive environment for the expansion of the life insurance market in the Philippines. As the economy continues to develop, the demand for life insurance products is expected to increase further, driving the growth of the market in the coming years.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.