Insurance Market Landscape in the PH

Notably, 37% of adults started saving more for emergencies, 17% increased their usage of online banking and digital payments, 15% resorted to borrowing more, and a modest four percent acquired insurance. This data highlights the growing awareness of financial security and the need for protection during uncertain times.

Despite these shifts, insurance penetration in the Philippines remains critically low at 1.75%, as reported by Insurance Commissioner Reynaldo Regalado. The primary barriers to higher insurance adoption include a lack of financial education and literacy, limited accessibility to insurance products, and widespread poverty. Additionally, technological limitations and a focus on other sectors to boost GDP contribute to the low uptake of insurance services. As Jonathan Matthew Bondy from Manulife Business Processing Service notes, the challenge of financial inclusion in the Philippines is not just about access but also about bridging the gap between those who are and aren's able to participate in the formal financial sector.

In response to these challenges, many insurance companies are investing in digital transformation. They are streamlining processes for applications, payments, and claims, with some even exploring advanced technologies like AI and blockchain to enhance policy distribution. The pandemic has underscored the significant gap in insurance coverage among Filipinos, emphasizing the urgent need for more accessible and inclusive financial products.

To bridge these gaps and improve insurance penetration, it is crucial for the industry to focus on increasing financial literacy, expanding digital access, and developing products that cater to the specific needs of the Filipino population. By doing so, the insurance sector can play a vital role in providing financial security and resilience in the face of future uncertainties.