Manila: Insurance penetration and density, representing the average spending of each individual on insurance, improved as of end-March this year, the Insurance Commission (IC) announced Wednesday.

According to Philippines News Agency, the IC reported that insurance penetration rose to 1.89 percent in the first quarter of the year from 1.78 percent in the same quarter last year. Insurance density also saw an increase of 13.40 percent, rising from PHP965.56 to PHP1,094.9 per capita.

These figures were derived from the unaudited Enhanced Quarterly Reports on Selected Financial Statistics by 127 of the 129 insurers and mutual benefit associations as of the first quarter of 2025. Insurance Commissioner Reynaldo Regalado attributed the increase in insurance penetration to the faster growth in premiums compared to the GDP expansion of 7.80 percent, at current prices, during this period.

Regalado further explained that the growth in insurance density was primarily driven by a rise in total premiums that surpassed the population growth rate of 0.87 percent during the same period. Data from IC highlighted that the total premiums of life and non-life insurers and MBAs grew by 14.41 percent, from PHP108.53 billion to PHP124.17 billion this year.

Moreover, the total net income increased by 7.09 percent to PHP15.30 billion, emphasizing the sector's solid financial health. In addition, the total assets of insurers and MBAs saw a growth of 4.13 percent, reaching PHP2.48 trillion from PHP2.38 trillion in the first quarter of 2024.