The Insurance Commission (IC) processed 100 percent of monetary claims as well as licenses and product applications last year to meet the growing needs of the insurance industry, which expanded to P1.79 trillion as of the third quarter of 2020.
In its report to Finance Secretary Carlos Dominguez III, the IC said it also issued 114 circulars in 2020, the highest in the history of the Commission, which were mostly on assisting the industry mitigate the economic impact of the coronavirus disease 2019 (Covid-19) pandemic on its clients as well as its workforce.
IC commissioner Dennis Funa said that amid the challenges resulting from the pandemic, the insurance industry grew 2.83 percent year-on-year (YOY) as of end-September 2020, with assets increasing from P1.74 trillion in 2019 to P1.79 trillion last year.
The life insurance sector grew 0.96 percent YOY as of the third quarter of 2020 to P1.4 trillion, while the non-life sector expanded 9.92 percent YOY in the same period to P274.5 billion.
“The industry’s total premium income amounted to P216.5 billion as of the October-December 2020 period, down by P8.47 billion compared to the amount in the same period in 2019. Of the P216.5-billion figure, P173.7 billion accounted for the increase in renewal premiums in the life sector,” the IC said in a statement.
As of September 30, 2020, some P2.41 billion in aggregate claims were paid by insurance companies, with the health maintenance organization (HMO) segment paying the largest chunk of Covid-related claims amounting to P1.32 billion or 54.6 percent of the total claims paid, Funa said.
As a result, he said, 61.3 percent of the claims paid by the insurance industry was for hospitalization benefits as of September 2020.
He said the life sector paid P817.86 billion in claims, followed by Mutual Benefit Associations (MBAs) with P222 billion in claims paid. The non-life sector paid P56.5 billion in claims as of the third quarter of 2020.
Death benefits accounted for 26.7 percent of the total Covid-19 related claims amounting to P614.86 million, while medical reimbursement benefits made up P9.62 million of the claims (0.42 percent), and critical illness benefits, P77.42 million (3.36 percent), Funa said.
He said assets of the HMO segment increased 30.69 percent to P48.7 billion as of end-September 2020.
HMO revenues increased 2.17 percent while expenses went down 14.1 percent, resulting to a 653.8-percent increase in its net income for the same period, he said.In the pre-need segment consisting of 12 active licensed firms, he said the total assets reached P90.39 billion and premium income amounted to P12.73 billion as of the third quarter of 2020. SOVEREIGNPH