BMI View: Philippines life insurance will remain among the fastest growing in the region, expanding by 1 8 % between 2015-2018 and rising to a premium of USD 9.1 bn by 2018 . N on-life premiums will grow much more slowly , at an annual average growth of just 9.6% , with premiums reaching 2bn by 2018. T he non-life market is underperforming with the insurance densit y only USD15.5 in 2015.
The Philippines life insurance market is a promising growth market and is the fastest growing in the South East Asian region (excluding the newly-formed Cambodian life market). 2014 and 2015 will see slower expansion than recent years, but growth of over 15% will remain through to 2018 and beyond. Despite these positives, the market remains small, reaching just USD5.7bn in 2015, only USD56 per capita.
Non-life growth suffered in 2014, largely due to the impact of Typhoon Haiyan, but will recover in 2015 to double-digit rates seen in recent years. The non life sector is, however, dwarfed by the life sector premiums which will be less than one third the size of the life sector premiums over 2015. 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 USD7.3bn in 2015.
Life premium growth will slow in 2014, compared to previous years, but still maintain an annual average growth rate of 18.16% between 2015 and 2018, with overall premiums rising from USD 5.7bn in 2015 to USD 9.1bn in 2018.
Non-life premium growth will bounce back in 2015, with an annual average growth rate of 9.58% between 2015 and 2018, though gross premium will reach only USD2.0bn by 2018.
Within non-life motor, health and personal accident insurance will grow the most with motor growing by 9.5% per annum and health & personal accident by in excess of 13% per annum.
Property insurance growth to...
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.
- 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).
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.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
- Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. 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.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
- Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
- Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
- Motor: Fleet size by type of vehicle % change y-o-y.
- Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.