Insurance demand in PH to grow 9.2% by 2035

Demand for insurance in the Philippines is projected to increase by 9.2% by 2035, driven by population growth and insufficient social protection policies, according to a study by Allianz.

Allianz chief economist Ludovic Subran attributes this growth to government underinvestment in climate adaptation, leading to increased climate-related damages, and delays in pension reforms that push individuals to save more independently.

Life insurance is expected to be the primary driver of this expansion, with the sub-sector anticipated to grow by 9.5% by 2035, following a 6.5% improvement from 2014 to 2024.

Allianz identifies Asia and China as key growth engines for the insurance industry, fueled by the increasing need for private financial provisions amidst rapid demographic shifts.

The Insurance Commission reported that the country's overall insurance penetration rate rose to 1.89% in the first quarter of this year, up from 1.78% in the same period last year, indicating a growing number of insured individuals.