Industry people use the word "penetration" a lot. It sounds technical, but the idea is simple, and the figure is worth sitting with.
What it measures
Insurance penetration is total insurance premiums as a share of a country's gross domestic product. It's a rough gauge of how much of the economy is spent on insurance protection.
It doesn't tell you how many people hold a policy. It tells you how large the insurance sector is relative to the whole economy.
The number
According to the Insurance Commission's reporting for 2024, penetration in the Philippines was about 1.67%. The figure for 2023 was reported at around 1.60% to 1.62%, depending on the source, so it rose a little.
Over the same period, total industry premiums reached about ₱440 billion, with life insurance premiums around ₱352 billion, up about 13.5% from the previous year.
Those are large peso figures. And yet, as a share of the economy, they're small.
How to read it
- Growth is real. Premiums increased by double digits in 2024. More people and businesses are buying protection.
- The base is still low. Many other countries in the region have much higher penetration. Reports on this repeatedly describe the Philippines as below global averages.
- Averages hide who's covered. Higher-income households and urban areas tend to hold most of the cover. Many families, especially those without a formal employer, have little or none.
I'd add one caution. Penetration is a blunt tool. A country can have a low figure because few people are covered, or because people hold modest amounts, or because a lot of risk is carried in other ways, such as extended family support. The number tells you the size of the gap. It doesn't tell you the shape of it.
What it means for a household
You don't need to be a statistician to take something from this.
The "everyone has insurance" assumption is wrong. If you've been told "most people have it," the data suggests otherwise.
If you're covered, you're in a minority that has done something unusual. That's worth knowing, and worth checking is working.
If you're not, you're not behind in some embarrassing way. You're in the majority. But the majority tends to be the group that has to rely on fundraisers, borrowing and family when something happens.
A practical use of the number
Treat it as a prompt for three questions about your own household:
1. Who depends on my income, and what protects them if it stops? 2. What would a serious illness cost us, in treatment and lost earnings? 3. Is what we have actually in force and enough, or has it quietly lapsed or fallen behind our needs?
A national percentage can't answer those. Your own paperwork can.
Sources: Insurance Commission annual industry reporting for 2024 as covered by BusinessWorld, The Philippine Star and Insurance Business Asia (penetration about 1.67% in 2024; 2023 reported at about 1.60% to 1.62%; total premiums about ₱440.39 billion; life premiums about ₱352.02 billion). Figures differ slightly between outlets. Check the Insurance Commission's own publications for the current numbers.
The free Life Ready Checklist at lifereadywithvenus.com has a page for writing down what you find, free and with no sign-up.
