The Insurance Commission of the Philippines has reported a significant improvement in the nation's insurance penetration, which rose to 1.78 percent in 2025 from 1.67 percent in the previous year. This growth is primarily attributed to robust expansion within the life insurance sector, highlighting its pivotal role in the industry's overall development.
Record-Breaking Insurance Density and Financial Metrics
Insurance density, measured as the average premium per capita, reached an unprecedented high of P4,384.56 in 2025, up from P3,894.03 in 2024. This increase reflects heightened spending on insurance products across the country. Of the total 1.78 percent insurance penetration rate, life insurance contributed 1.44 percentage points, underscoring its dominant position in driving industry growth.
Preliminary data as of January 29, 2026, reveals that the life insurance sector's total assets grew by 8.54 percent to P2.09 trillion in 2025, compared to P1.93 trillion in 2024. Despite an 8.19 percent rise in total liabilities, the industry's net worth expanded at a faster rate of 10.58 percent, reaching P310.72 billion from P280.99 billion in the prior year. Additionally, total net income saw a substantial increase of 15.11 percent, climbing to P46.32 billion in 2025 from P40.24 billion previously.
Premium Growth and Sector Contributions
Total premiums across the insurance industry surged by 14.54 percent to P403.21 billion in 2025, up from P352.02 billion in 2024, indicating sustained demand for insurance coverage. The life insurance sector accounted for 80.77 percent of the P499.23 billion in total premiums paid to the entire industry last year. Furthermore, life insurers disbursed P121.88 billion in benefits during 2025, reinforcing their critical role in providing financial security.
In a statement, Insurance Commissioner Reynaldo A. Regalado emphasized that the continued rise in premiums and net worth signals positive momentum heading into 2026. "Insurance continues to provide a vital safety net, protecting Filipino families and businesses alike," Regalado said. He added that the commission will pursue financial literacy and inclusion programs alongside strengthened regulatory supervision to further broaden access to insurance coverage.
Awareness Challenges in Life Insurance Adoption
Despite these gains, industry players identify awareness as the most significant barrier to expanding life insurance coverage. In an interview, Jennifer Santos, vice-president for agency growth and national sales director at Prulife UK, noted that many Filipinos still do not fully appreciate the value of life insurance. "Not everyone believes that life insurance is important. Not everyone knows how important it is," she stated.
Santos explained that it often takes a personal experience, such as a death in the family, hospitalization, or an accident, before people recognize the importance of life insurance. "Our challenge is to create awareness before an emergency happens," she emphasized. Even as one of the country's leading life insurers in terms of premium income, the company acknowledges that acceptance of life insurance remains low, with no natural demand for such products.
Financial planners frequently encounter multiple objections before securing client meetings, and while younger Filipinos have greater access to financial information through social media and digital platforms, converting this awareness into actual policy purchases remains difficult. "They may be more aware, but it still takes action to buy a policy and start protecting themselves," Santos remarked.
Importance of Preparedness in Disaster-Prone Areas
In regions like Cebu, which are prone to disasters, financial preparedness is especially critical. Calamities, illnesses, and accidents can severely strain household finances, particularly for families without adequate safety nets. Santos stressed, "What is important is to be prepared. We don't know when something will happen, but having coverage helps cushion the financial impact." This underscores the urgent need for enhanced education and outreach efforts to promote insurance adoption across vulnerable communities.
