Philippine Insurance Growth Set To Outpace Economic Expansion

The Philippine insurance industry is projected to expand at an average annual rate of 9.6% over the next decade, exceeding the country’s expected nominal gross domestic product (GDP) growth of 8.3%, according to the Allianz Global Insurance Report 2026.

The forecast places the Philippines among the faster-growing insurance markets globally and highlights the increasing role of insurance in supporting economic development, financial security and risk management across households and businesses.

According to the report, the global insurance market is expected to grow by an average of 5.3% per year through 2036. This rate is slightly higher than the projected pace of global economic growth, reflecting continued demand for financial protection products worldwide. However, the Philippines is forecast to significantly outperform the global average, driven by robust expansion across life, property and casualty (P&C), and health insurance segments.

The Philippine insurance market recorded strong performance in 2025, with total premium income reaching US$9.2 billion (€7.9 billion), representing annual growth of 12.2%. The expansion was largely supported by life insurance, which emerged as the primary driver of industry growth.

Life insurance premiums increased by 16.9% during 2025, substantially higher than the segment’s average annual growth rate of 8.7% recorded between 2015 and 2025. The strong performance reflected sustained consumer demand for long-term savings, protection products and financial planning solutions.

Property and casualty insurance also registered positive growth, with premiums rising by 5.6% during the year. The segment continued to benefit from increasing awareness of risk protection among businesses and individuals. In contrast, health insurance experienced a decline, largely due to high comparison bases following exceptionally strong growth in previous years.

Despite the recent slowdown, health insurance remains a key area of future expansion. Allianz Research forecasts that health insurance will continue to be the fastest-growing insurance segment globally, with average annual growth of 6.7% over the coming decade. In the Philippines, health insurance is expected to perform even more strongly, expanding by 8.3% annually. Growth is expected to be supported by ongoing efforts to address gaps in healthcare coverage and improve financial protection for medical expenses.

The outlook for life insurance remains particularly positive. Allianz Research expects the Philippine life insurance market to grow by approximately 10.0% per year over the next decade, more than double the projected global average of 4.9%. The report noted that higher interest rates are likely to continue supporting demand for life insurance products, particularly those linked to savings and investment objectives.

Similarly, the Philippine property and casualty insurance sector is forecast to grow by 8.5% annually, significantly above the global average of 4.7%. The expected expansion reflects rising demand for protection against a broad range of risks, including property damage, business interruption and other unforeseen events.

Henry Yang, Chief Investment Officer of Allianz PNB Life, said the projections underscore the growing importance of insurance in the country’s economic and social development. He noted that Asia is expected to remain the principal growth engine of the global insurance industry as demographic changes and evolving financial needs increase demand for private protection solutions.

Yang also said that the Philippine market is well positioned to benefit from these long-term trends. In particular, he highlighted opportunities within the life and health insurance sectors, where insurers continue to work towards reducing protection gaps and strengthening the financial resilience of households.

The report suggests that rising incomes, increasing awareness of financial security, demographic developments and demand for broader risk protection are likely to support sustained expansion across the Philippine insurance industry. With growth projected to exceed both domestic economic expansion and global insurance market averages, the sector is expected to play an increasingly significant role in the country’s financial landscape over the coming decade.