Insurance
From The Report: Philippines 2019
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This is an important period of transition for the Philippine insurance sector, as stakeholders attempt to meet a range of new regulatory requirements designed to expand the industry’s depth and reach. There has been strong growth in profitability and gross written premium in recent years, generated by a wide range of insurance types and entities. Indeed, one of the main characteristics of the Philippine market is that it includes not only conventional life and non-life insurance, but also composite companies, pre-need outfits, mutual benefit associations, health maintenance organisations, and micro- and macro-insurers. All segments are likely to benefit from continued efforts to strengthen the market by the sector regulator, the Insurance Commission. Moves towards establishing a more comprehensive disaster and emergency fund are also expected to improve market standing and spread risk in the years ahead. This chapter also contains an interview with Rahul Hora, CEO, AXA Philippines.

Articles from this Chapter

Overview

Changing times: Both life and non-life segments look set to expand, provided the sector keeps up with regulatory reforms
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This is an important period of transition for the Philippine insurance sector, as stakeholders attempt to meet a range of new regulatory requirements designed to expand the industry’s depth and reach. There has been strong growth in profitability and gross written premium (GWP) in recent years, generated by a wide range of insurance types and entities. Indeed, one of the main characteristics of the Philippine market is that it includes not only conventional life and non-life insurance, but also…

Interview

Increasing coverage: Rahul Hora, CEO, AXA Philippines, on moves towards consolidation and the benefits of developing technology
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Interview:Rahul Hora In what ways will the implementation of minimum capital requirements of P900m ($16.7m) encourage further consolidation of the insurance sector? RAHUL HORA: Increased capital will promote consolidation in the sector, especially in the general insurance (GI) segment. A lot of smaller GI companies are focused on their own group’s captive business, which constitutes a substantial share of their total business. The new minimum requirements might challenge the business model…

Analysis

Raising the bar: The adoption of new paid-up capital requirements is likely to cause a surge in mergers and acquisitions
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The Philippine insurance market appears ripe for consolidation, with some 86 life, non-life and composite insurance firms in operation at end-2018. In an effort to strengthen the sector, the Insurance Commission (IC) is incrementally raising the sector standards, adopting the latest financial reporting standards and increasing risk-based capital requirements. Implementing new requisites has already caused some mergers and drop-outs in the market, with more forecast in the years ahead. Stepping Up In…