Business Monitor International


Philippines Insurance Report

Published 13 May 2014

  • 80 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Philippines Insurance Report

BMI View: The Philippines insurance market will continue to be one of the fastest growing in the region. 2013 saw growth of over 42% in the life sector, albeit from a low base of USD2.85bn in 2012. The non-life sector is even smaller and growing at a much slower pace, at USD1.15bn in 2013 it is smaller than Vietnam's and less than 20% the size of Thailand's.

Life segment growth of 42% in 2013 is far below the initial estimates prompted by over-zealous reports for the first three quarters of the year. However, it remains a promising growth market and is the fastest growing in the South East Asian region (excluding the newly-formed Cambodian life market). However, at a little of USD40 per person, life insurance density remains low and will only reach USD80 in 2018. By comparison, Thai life insurance density was over USD200 per person in 2013 and Indonesia's USD55 and growing quickly. The segment remains dominated by the top 5 players, controlling over 60% of gross premiums

The non-life sector grew at a faster pace than previously expected in 2013, with initial reports indicating 18% growth to USD1.4bn. No further breakdown has been released, but we expect to see growth in the motor insurance and health and personal accident lines. Insurance penetration passed 0.5% of GDP for the first time since 2004, a level far below that of Thailand, but roughly similar to Vietnam. Pioneer and Charter Ping An stand out as two domestic insurers that will exhibit strong growth over the next five years, particularly if regulatory developments continue to assist the market.

Key BMI Forecasts:

  • Total premiums to grow to USD6.0bn by 2014.

  • Life premiums grew by 43% in 2013 and will grow by 19% in 2014 to USD4.6bn.

  • Non-life premium growth of USD2.0bn is forecast to 2018, only USD19 per capita.

  • Motor vehicle insurance within this to grow to USD406mn.

  • Moderate decline to USD117mn in 2014 in transport insurance.

Table of Contents

BMI Industry View
7
SWOT
8
Insurance
8
Political
10
Economic
11
Business Environment
12
Industry Forecast
13
Total Premiums Forecast
13
Total Premiums
13
Table: Total Gross Premiums Written (Philippines 2011-2018)
13
Claims
14
Table: Total Insurance Claims (Philippines 2005-2012)
14
Assets
14
Table: Assets (Philippines 2005-2012)
15
Life Premiums Forecast
16
Total Premiums
17
Table: Gross Life Premiums Written (Philippines 2011-2018)
17
Life Insurance Claims
17
Table: Life Insurance Claims (Philippines 2005-2012)
18
Life Insurance Assets
18
Table: Assets (Philippines 2005-2012)
19
Life Insurance Drivers
19
Table: Insurance Key Drivers, Disease Adjusted Life Years (Philippines 2011-2018)
19
Table: Insurance Key Drivers, Private Health Expenditure (Philippines 2011-2018)
20
Non-Life Premiums Forecast
21
Non-Life Premiums
21
Table: Gross Non-Life Premiums Written (Philippines 2011-2018)
22
Non-Life Reinsurance Premiums
23
Table: Reinsurance Non-Life Premiums Written (Philippines 2011-2018)
23
Non-Life Claims
24
Table: Non-Life Insurance Claims (Philippines 2005-2012)
24
Non-Life Assets
25
Table: Assets (Philippines 2005-2012)
25
Non-Life Sub-Sector Forecast
26
Table: Non-Life % Breakdown (Philippines 2011-2018)
27
Motor and Transport Insurance
28
Table: Motor Vehicle Insurance (Philippines 2011-2018)
28
Table: Transport Insurance (Philippines 2011-2018)
29
Table: Insurance Key Drivers, Autos (Philippines 2011-2018)
29
Property Insurance
30
Table: Property Insurance (Philippines 2011-2018)
30
Credit/Financial Guarantee Insurance
30
Table: Credit/Financial Guarantee Insurance (Philippines 2011-2018)
31
Industry Risk Reward Ratings
32
Asia Pacific Industry Risk/Reward Ratings
32
Table: Asia Pacific Insurance Risk/Reward Ratings
32
Market Overview
34
Life Market Overview
34
Table: Life Insurance Market (US$mn) 2010-2012
35
Table: Life Insurance Market (%) 2010-2012
36
Non-Life Market Overview
37
Table: Non-Life Insurance Market (US$mn) 2010-2012
38
Table: Non-Life Insurance Market (%) 2010-2012
39
Company Profile
40
AIA Group
40
American International Group (AIG)
43
AXA
47
HSBC Insurance
50
Insular Life/MAPFRE Insular
52
Manulife Financial
55
Prudential plc
58
Sun Life Grepa Financial/ Malayan Insurance
62
Sun Life Financial
66
Demographic Forecast
68
Demographic Outlook
68
Table: The Philippines' Population By Age Group, 1990-2020 ('000)
69
Table: The Philippines' Population By Age Group, 1990-2020 (% of total)
70
Table: The Philippines' Key Population Ratios, 1990-2020
71
Table: The Philippines' Rural And Urban Population, 1990-2020
71
Methodology
72
Industry Forecast Methodology
72
Risk/Reward Rating Methodology
75
Table: Indicators
77
Table: Weighting of Indicators
78

The Philippines Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.

BMI's Philippines Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Philippine insurance industry.

Key Benefits

  • Benchmark BMI's independent insurance industry forecasts for Philippines to test other views - a key input for successful budgeting and strategic business planning in Philippines's insurance market.
  • Target business opportunities and risks in Philippines through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.

Regional Outlook

Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.

Business Environment Rankings

BMI's Insurance Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (Life and Non-Life) in the insurance market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.

BMI Industry Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

Premiums: Total (US$mn), growth (% y-o-y), penetration (% of GDP), density (US$ per capita) for Life and Non-Life sectors, and total premiums.

Life: Data on gross written premiums for all major non-life segments (e.g. motor, fire, work).

Non-life: Data on gross written premiums for all major life segments (e.g. life, retirement).

Economic: Nominal GDP (US$bn), real GDP growth (%), GDP per capita (US$), population (mn), unemployment (%), exchange rate (against US$).

Competitive Landscape & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (US$mn) and market share (%). This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc