The Philippine insurance industry continues to expand in premiums and assets, yet it remains a relatively small part of the country’s financial system, prompting the Insurance Commission (IC) to increase scrutiny of licensed insurers as it seeks to strengthen the sector’s resilience. Speaking on the sidelines of the Asia Pacific Life Insurance Congress (APLIC) launch in June 2026, IC Deputy Commissioner Ermar U. Benitez said the regulator is shifting its focus from initial licensing toward closer supervision of companies already operating in the market.

According to the Manila Bulletin, Benitez said the commission is not seeking to make market entry more difficult but will make “licensing monitoring stricter.” The approach places greater emphasis on the financial position of licensed insurers after they begin operating rather than solely during the licensing process. “If your company’s assets are bigger, you’ll be able to better address the claims,” Benitez told reporters, adding that a stronger asset base would make the industry “more resilient.”

Insurance remains a small share of the financial system

The shift comes as the insurance sector continues to account for only a small share of the Philippine financial system despite sustained growth in premiums and assets. According to the Manila Bulletin, insurance industry assets totalled ₱2.65 trillion in the first quarter of 2026, equivalent to 8.6% of the banking sector’s ₱30.9 trillion in assets over the same period. Benitez said insurance industries in many neighbouring markets account for a larger share of their respective financial systems, highlighting the room for further development in the Philippines. Insurance Commission statistics show total industry assets increased from ₱2.50 trillion in the third quarter of 2024 to ₱2.62 trillion in the third quarter of 2025 before reaching ₱2.65 trillion in the first quarter of 2026. Invested assets also climbed during the period, rising from ₱2.26 trillion to ₱2.37 trillion.

Penetration improves but trails more developed markets

Insurance penetration has also trended upward, although it remains comparatively modest. Measured as total premiums relative to gross domestic product, penetration reached 2.03% in the first quarter of 2026, compared with 1.85% in the third quarter of 2025. The OECD's Global Insurance Market Trends 2025 reported that insurance penetration across advanced OECD economies averaged 6.2% of GDP in 2024, well above the levels recorded across most emerging Southeast Asian markets. Against that backdrop, the commission’s tighter supervisory approach reflects a focus on ensuring insurers maintain sufficient financial capacity as the market continues to expand.

Premium growth continues despite earnings pressure

Premium income continued to rise across all major segments. Through the third quarter of 2025, total premiums increased 13.25% year on year to ₱372.08 billion, supported by a 13.77% increase in life insurance premiums to ₱299.45 billion and a 13.07% rise in non-life premiums to ₱60.07 billion. Contributions from mutual benefit associations also increased modestly.

The industry passed another milestone by the end of 2025, with total premiums reaching ₱502.64 billion. Life insurance represented 80.22% of the total, while non-life insurance accounted for 16.41% and mutual benefit associations contributed 3.37%. Growth continued into the first quarter of 2026, when total premiums reached ₱140.85 billion, up from ₱124.48 billion a year earlier.

IC Commissioner Reynaldo A. 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.”

Financial performance also improved over 2025. Industry net income rose 15.10% to ₱64.79 billion despite higher benefit payments and total liabilities. In the first quarter of 2026, benefit payments increased from ₱39.01 billion to ₱43.44 billion year on year, contributing to a 1.75% decline in net income during the period.

Commission pursues stronger supervision and code reforms

The regulator also reported increased enforcement activity. The Insurance Commission collected ₱87.72 million in fines and penalties in 2025, an 86.21% increase from the previous year. The commission said the increase reflected more systematic enforcement rather than a deterioration in compliance across the industry. Separately, the commission is pursuing amendments to the Insurance Code during the 20th Congress. According to the Manila Bulletin, Benitez said the regulator has reviewed approaches adopted in other jurisdictions, including the use of wearable health-tracking technology in insurance. In the near term, however, the commission's priorities remain improving claims processing and actuarial evaluation by reducing reliance on manual processes.