Philippines Insurance Market Analyzed in New Timetric Report
29 Jan 2013 • by Natalie Aster
Non-Life Insurance in the Philippines, Key Trends and Opportunities to 2016. The Philippine non-life insurance segment grew in written premium value at a compound annual growth rate (CAGR) of 8.9% during the review period (2007–2011). This was supported by the country’s economic growth, expanding automobile industry, improving awareness of the benefits of insurance and demographic changes such as its growing middle-class population. Over the forecast period (2012–2016), the non-life insurance segment’s growth will be driven by the development of the automobile industry and the rising construction activity in the country. Property insurance is the largest category in the non-life segment, which accounted for 45.2% of the category’s written premium in 2011, followed by motor insurance with 37.0%. The marine, aviation and transit, and general liability insurance categories accounted for 13.1% and 4.7% shares respectively.
Reinsurance in the Philippines, Key Trends and Opportunities to 2016. The Philippine reinsurance segment declined in 2009 as a result of the global economic crisis, before recovering and recording annual growth of 3.6% in 2010 and 3.0% in 2011. During the review period, the Philippine reinsurance segment was dominated by National Reinsurance Corporation of the Philippines (PhilNaRe), which has been awarded a financial strength rating of “B++” and an issuer credit rating of “bbb” from AM Best. The company’s adequate capitalization, established market presence and conservative investment portfolio are major contributors to its status as the most successful reinsurer in the Philippines. Its conservative investment portfolio also allowed PhilNaRe to generate a stable investment income during the review period. Growth in the direct insurance segments, including life, non-life, and personal accident and health insurance, is expected to drive the reinsurance segment over the forecast period. As insurance companies tend to share some proportion of their risk with reinsurers, this creates significant opportunities for reinsurance companies operating in the Philippines. The occurrence of natural disasters in the country has also compelled insurance companies to cede part of their written premium to reinsurers. The reinsurance segment in the Philippines is expected to register a CAGR of 1.9% over the forecast period.
More new market research reports by can be found at Timetric page.
To order the report or ask for sample pages contact [email protected]