“Just one ray of sunshine is enough to dispel millions of shadows.” – Francis of Assissi
A happy and bountiful 2026! A brand new year to be hopeful and optimistic of the prospects 2026 has in store for us. But many believe that the dark shadow of 2025 will still loom over us this new year. The Filipinos are still waiting and hoping for positive developments in the on-going investigation on the massive corruption in our government. Not only are the real perpetrators have yet to be brought to justice, this corruption scandal involving our elected and high-ranking government officials have brought all major economic metrics down.
With the GDP growth of 4.4% in Q3 2025 marking the slowest pace of growth since early 2021, the Philippine peso falling to its lowest level ever, the stock market hitting a fresh 3-year low, declining international tourism, and price increases headlining our economy, it’s now more challenging for ordinary Pedros and Juans to feel the holiday spirit. Never mind DTI’s insistence that P500 is enough for a Filipino family’s Noche Buena. As health reform advocate, Dr Tony Leachon said, “if our country is a patient, it’s condition is already in ICU.” A sad and dreadful prognosis.
Thankfully, amidst these economic storms, we see some green shoots in the Philippine insurance industry. The Insurance Commission reported that insurance penetration in the country climbed to 1.85 percent in third quarter 2025, versus 1.74 percent last year. The insurance penetration refers to the ratio of the total insurance premiums to the gross domestic products and highlights a significant increase in premium volume.
For the same quarter, the industry saw their total premiums rise 13.3 percent year-on-year, equivalent to P372.1 billion. Life insurance premiums rose 13.77% to ₱299.45b, non-life premiums increased 13.07% to ₱60.07b, while Mutual Benefit Associations (MBAs) grew 2.86% ₱12.57b.
But more than the growth in numbers, these trends mean that more Filipinos are becoming aware and appreciative of the value of getting themselves protected against life uncertainties. As IC Commissioner Reynaldo Regalado said, ”The accelerating growth in total premiums and other key statistical indicators underscores not only the increasing trust and recognition of the vital role insurance plays in economic resilience, but also, the stronger awareness among Filipinos on the value of financial protection,”
The growth in insurance penetration and premiums means that more Filipinos will be financially protected in case of sickness, disability, calamities, old-age or death. They can live the life they dream of and prepare for against life’s ups and downs, turns and twists. Here are the truths beyond the numbers.
In a country with a non-functioning health care system, getting sick and hospitalized can be a very expensive and grueling experience. The high cost of hospitals, medicines and post-op cares versus the almost negligible Philhealth subsidy, can really drain one’s pocket, push one into deep debts or prevent one from getting medical attention. This premium growth is very important because it means that more Filipinos will have access to better medical and health care without needing to take out a loan or dip into and wipe out their life-long savings when a family member gets critically ill and hospitalized. Having a medical insurance can give the peace of mind while you focus on healing and recovery.
With our sub-standard educational system, many Filipino children are denied access to quality education. Our public school system which is supposed to have the highest budget allocation from our government in order to deliver quality free education to our children, cannot even adequately provide our students the basics – teachers, classrooms, books and other educational materials. No wonder Filipino students are the lowest performers in the different international academic assessments. The growth in premiums is meaningful because it equates to more parents (living or dead) having the funds to provide their children access to quality education. An educational insurance empowers parents to give their children the chance to fulfill their dreams and have better options in life.
Retirement should be a reward for many years of hard work. This should be a period where our seniors can relax and enjoy their twilight years free from financial stress and worries. However, for retirees with no pensions or solely relying on their SSS or GSIS pension funds, this can be a challenge. Most are forced to continue working not because they want to but because they need to. An increase in insurance penetration means more seniors can retire financially independent and capable. Free to do what they want without needing to depend on their children/relatives for their daily sustenance and other needs. A retirement plan allows us to continue to live a life of dignity in our remaining years on earth.
The recent spate of typhoons, floodings and earthquakes have brought destructions to thousands of our fellow Filipinos. Houses, cars, business establishments and other properties were severely damaged. Though these properties are replaceable, many of the affected owners do not have the means to restart. Many are at lost, not knowing where and how to rebuild their properties, their life. Surely, there’s the 5K-10K dole out from the government. But what can this really buy? The 13 percent growth in non-life premiums means that more Filipinos will have their properties protected and have the financial resource to either partially or fully fund their rebuilding efforts. A property and casualty insurance gives that safety net as it provides compensation for your losses or damages due to uncertain factors that cannot be predicted.
This growth trend of the industry is projected to continue until end of the year. Though the insurance gap in the Philippines is still significant, leaving most Filipinos financially vulnerable, the double-digit growth in insurance premiums is encouraging enough. Thanks to the concerted efforts of our regulators, insurance companies, and agency force for this bit of good news. A ray of sunshine that we badly need as we start the new year 2026!
