Top insurance companies in the Philippines
According to the Philippine Statistics Authority (PSA), the Top insurance companies in the Philippines provide our community, with the total amount spent on healthcare in the Philippines in 2019, known as Current Health Expenditure (CHE), increased to Php792.6 billion. CHE encompasses the total expenses incurred by the government, health maintenance organizations (HMO) providers, insurance companies, and out-of-pocket (OOP) payments made by Filipinos for healthcare services.
And 47.9% of which is from the individual pockets of Filipinos.
The lack of adequate health insurance coverage in the Philippines has resulted in a significant gap, pushing around 1.5 million Filipinos into poverty every year. This, in turn, forces families to reduce spending on essential needs such as education and healthcare.
Therefore, insurance companies need to step up their efforts to bridge this gap. However, there has been a slight improvement in overall healthcare in the country, as evidenced by a decrease in out-of-pocket expenses from 56.3% in 2017.
Without a doubt, the pandemic had a profound impact on the world, particularly the medical industry. However, healthcare challenges have long been a persistent issue in the country. In essence, the COVID-19 pandemic exacerbated the situation.
A significant number of Filipinos perish due to their inability to obtain the necessary medical treatment. While some individuals survive, they often face poverty. This highlights the dire need for life and health insurance, which plays a crucial role in nation-building.
The cost of medical treatment in the Philippines is on the rise. In 2017, around four million Filipinos had health maintenance organization (HMO) coverage, with an average maximum benefit limit (MBL) of only Php150,000. This amount is beneficial to ailing employees, but it is insufficient to cover major medical concerns such as stroke, cancer, and heart attack.
Having a medical insurance plan may provide a false sense of security that your coverage is sufficient. However, the reality is that certain medical conditions can result in expenses far exceeding the average maximum benefit limit (MBL). For instance, the cost of treating a stroke may reach up to Php 1.8 million, while a heart attack may cost around Php 900,000. Breast cancer and lung cancer treatments may cost up to Php 430,000 and Php 2.7 million, respectively.
When the actual cost of treatment surpasses the MBL, individuals are left with out-of-pocket expenses to cover the difference. In the event of illness, there are two options: either sell off assets or use savings intended for other purposes, such as building a home, starting a business, or funding education for children.
Second, transfer the risk to an insurance company by getting life and health insurance.
How do we come up with the list?
Many companies are competing for the title of top life insurer and some blogs and websites are attempting to compile data from the Insurance Commission (IC) to determine the number one spot. However, it’s important to question whether this is the correct way to interpret the data.
To alleviate confusion, this blog aims to clarify the situation. In April 2022, the IC released five financial reports, with different companies ranking first in each metric. However, out of the five categories, only one, Premium Income, is commonly used to determine the top 10 life insurance companies not just in the Philippines, but worldwide.
Premium Income
In simpler terms, insurance revenue refers to the money that an insurance company earns from its customers who pay for their insurance products, also known as premiums. When a customer buys an insurance product, such as health insurance, they pay a certain amount of money, which is referred to as the premium, for a specific period of time as per the terms of the insurance policy.
The other metrics are also important. For instance, you use it to know the overall financial health of a company.
You can interpret the categories in this way.
Premium Income
“It is the combination of a company’s past and present insurance business. The past business is commonly referred to as renewal premiums, which are a good indicator of customer satisfaction and the quality of the company’s services. In contrast, the present business is referred to as new business annual premium equivalent (NBAPE).”
I hope this helps clarify the information you wanted to convey!
New Business Annual Equivalent (NBAPE)
This statement means that the new business annual equivalent (NBAE) is an important indicator of an insurance company’s sales performance in a given year. In other words, it shows how successful the company has been in acquiring new customers. This is crucial because the NBAE is a reflection of how the public views the company.
A higher NBAE indicates growth, which is desirable, while a lower NBAE suggests a decline in customer interest or trust. Therefore, insurance companies strive to maintain or increase their NBAE to demonstrate their appeal and reliability to potential customers.
Net Income
The term refers to the amount of money a business earns after deducting its expenses. It is a crucial indicator of the company’s profitability. Since you will be investing your money in the company through insurance, it is important to consider its profitability. Ultimately, you want to ensure the company will be financially stable when you need it.
Net worth
This statement means that the value of a company’s assets minus its liabilities is known as its “equity” or “net worth.” This value demonstrates the company’s ability to pay off any outstanding debts or claims against it.
Total Asset
The company’s assets can be classified as either current or fixed, and observing how they are managed can provide insight into the company’s operations. A successful company should strive to have increasing assets that can sustain its business and sales growth.”
Sun Life Remains the Top Life Insurance Company in 2023
Why is it important for insurance buyers that a life insurance company ranks among the top 10 or is the number one company in the industry?
It’s important because it serves as proof that companies like Sun Life are capable of fulfilling their promise to their clients. Life insurance is a type of contract where the insurer promises to pay a specified amount to the beneficiaries when the policyholder passes away.
As a policyholder, you want to ensure that your family will receive the promised benefits when the time comes. Being associated with a highly-rated life insurance company increases the likelihood that they will fulfill their obligations to you and your loved ones.
Sun Life’s Traditional and VUL Plans
It is important to evaluate the reputation of an insurance company before purchasing any insurance policy. You want to ensure that the company will still be financially stable and able to fulfill its obligations to you when you need it. However, this should not be the only factor to consider when choosing a plan. It is also important to take into account convenience, customer service, the advice of a trustworthy financial advisor, and other relevant factors.
If you’re looking for both income protection and a way to accumulate wealth, a VUL plan can be an excellent choice. This type of plan allows you to increase your wealth while also providing financial security and peace of mind. If you’re interested in learning more about VUL plans and how they can benefit you, please click the link below to request a quotation and schedule a financial consultation.
“Let’s delve deeper into the other companies that made it to the list. As previously stated, we ranked the top 10 life insurance companies in the Philippines based on their premium income. The table below presents an overview of the performance of each company.”
Top 10 Life Insurance Companies in the Philippines 2023
So here are the top 10 life insurance companies in the Philippines in 2023.
1. Sun Life of Canada (Philippines) Inc.
Sun Life of Canada (Philippines) was established in 1895, making it the oldest and first life insurance company in the Philippines. Its outstanding ability to deliver on its commitments to its clients has undoubtedly made it the preferred choice for life insurance in many households. It’s no surprise that it continues to be the leading life insurance company in the country.
Sun Life of Canada (Philippines) was established in 1895, making it the first and oldest life insurance company in the Philippines. Its track record of delivering on its commitments to its customers has made it the preferred choice for life insurance for many households. It’s no surprise that Sun Life remains the leading life insurance company in the country.
Premium Income: 1
➡ NBAPE: 2
⬇ Net Income: 2
⬇ Net Worth: 3
⬆ Total Assets: 1
In 2022, Sun Life maintained its position as the top life insurance company in the Philippines for 11 years in a row, based on premium income. It ranked just one place below Prulife in terms of NBAPE, with a narrow margin of Php 75 Million.
Despite this, Sun Life experienced a slight decrease in net worth and net income. Nevertheless, it surpassed AIA Philippines in terms of total assets, securing the top spot in this category.
2. Philippine AXA Life Insurance, Corp.
AXA Philippines was founded in the Philippines in 1999 and has achieved significant expansion and market penetration due to its bancassurance operations. It is important to note that AXA Philippines is a collaboration between the AXA Group and the Metrobank Group.
Premium Income: 2
➡ NBAPE: 3
➡ Net Income: 5
⬇ Net Worth: 7
➡ Total Assets: 3
“To be precise, the company’s overall performance has remained stable, and it has managed to retain its position in most categories, except for Net Worth, where it has dropped by one place. Although the company has been stable, it has not shown significant growth in acquiring new business.”
3. Pru Life Insurance Corp. of UK.
The statement means that Pru Life UK, a life insurance company in the Philippines, was established in 1996, which means it has been operating in the industry for 23 years. Although the company is considered relatively new compared to its competitors, it managed to secure the third spot in the list of life insurance companies in the country.
Premium Income: 3
➡ NBAPE: 1
⬇ Net Income: 8
⬇ Net Worth: 10
➡ Total Assets: 5
In addition, Pru Life held onto its position in terms of Premium Income, New Business Annual Premium Equivalent (NBAPE), and Total Assets. However, although it maintained its number one spot in NBAPE for two years, its performance was only slightly better than Sun Life’s. Moreover, there was a significant decrease in its net income by four places and net worth by three.
4. Allianz PNB Life Insurance, Inc.
Allianz PNB Life was established in 2001 as a subsidiary of Alliance SE. It is currently ranked 4th among the top 10 life insurance companies in the Philippines, which is a significant improvement from its 10th place ranking last year.
Premium Income: 4
⬆ NBAPE: 4
➡ Net Income: 13
⬆ Net Worth: 19
➡ Total Assets: 9
“Allianz PNB has had a significant impact on the business landscape this year. It has shown impressive progress in terms of premium income, moving up three places. In addition, it has moved up four places in NBAPE and seven places in net worth. However, there have been no changes in its net income and total assets.”
5. FWD Life Insurance Corporation
In 2014, FWD began operating in the Philippines. Despite being a relatively new entrant in the market, they were able to secure a spot in the top 10 life insurance companies in the count
⬇ NBAPE: 6
⬆ Net Income: 10
⬆ Net Worth: 11
➡ Total Assets: 12
FWD advances five (5) places in terms of premium income, while its NBAPE declined by one (1). They also showed improvement in net income and net worth, while no changes in their placement in total assets.
6. BDO Life Assurance Co. Inc.
BDO Life Assurance Co. Inc is the current name of Generali, which was established in 1999 as a partnership between Generali Pilipinas Holdings Company Inc. (GPHC) and BDO.
Premium Income: 6
⬆ NBAPE: 5
⬆ Net Income: 7
⬆ Net Worth: 5
➡ Total Assets: 8
Furthermore, BDO Life has successfully navigated the challenges brought about by the pandemic as evidenced by its progress in two key areas: premium income and NBAPE. Specifically, the company has moved up two spots in both categories. Additionally, BDO Life has made significant strides in its net income, jumping from 30th to 7th place. Finally, the company’s net worth has increased by three.
7. BPI-AIA Life Assurance Corportation
In the past, the organization was called Ayala Life Assurance Incorporated and was established in 1933. Currently, it holds the top position in the country’s bancassurance industry due to the strategic partnership between BPI and Philam Life.
Premium Income: 7
⬇ NBAPE: 7
⬆ Net Income: 6
⬇ Net Worth: 6
➡ Total Assets: 7
BPI-AIA slides by two (2) places in premium income and NBAPE. The net income declined while it maintained 7th place in total assets.
8. Manulife Philippines
The Manufacturers Life Insurance Company, also known as Manulife, owns a subsidiary in the Philippines called Manufacturers Life Insurance Company (Phils.). This company has been in operation since 1907, making it one of the oldest insurance companies in the Philippines
Premium Income: 8
⬇ NBAPE: 8
⬇ Net Income: 4
➡ Net Worth: 4
➡ Total Assets: 6
Premium income and NBAPE slide by two (2) places. Its net income also declines, while there’s no movement in its placement in net worth and total assets.
9.Manulife Chinabank Life Assurance Corporation
The company is a collaboration between Manulife Philippines and China Bank. Its objective is to offer a diverse selection of creative insurance products and services to customers of China Bank.
Premium Income: 9
⬆ NBAPE: 9
⬇ Net Income: 24
⬇ Net Worth: 16
⬆ Total Assets: 10
Manulife Chinabank has moved up two places in the list of top life insurance companies in the Philippines based on premium income and is now among the top 10. Their previous inclusion on this list was in 2019.
Although NBAPE saw a rise of four places, it experienced a significant decrease in net income and net worth despite an increase in renewals and new business. However, there was a slight increase in their total assets.
10. AIA Philippines
AIA Philippines, previously known as Philam Life, was established in 1947 by Cornelius Vander Starr and his partner Earl Carrol. The partnership between the two founders played a significant role in making Philam Life the leading life insurance company in just two years, specifically in 1949.
Premium Income: 10
⬇ NBAPE: 10
⬆ Net Income: 1
➡ Net Worth: 1
⬇ Total Assets: 2
Furthermore, AIA Philippines experienced a significant decrease of 6 in Premium Income within a year. Additionally, there was a decline of one (1) in NBAPE, although the company maintained its position in net worth. Furthermore, AIA Philippines lost its long-held number one position in terms of total assets to Sun Life.
Increasing the number of clients can bring in more revenue for your business, which can be used to expand and pay out claims. Additionally, this can lead to reduced administrative and insurance expenses, allowing for more funds to be allocated towards your VUL plan’s investment fund or dividends for a traditional insurance plan.
Pru Life UK. The top performer in this category was able to generate Php 8.83 billion in new business premiums, while Sun Life came in second place with a slightly lower figure of Php 8.56 billion. For a more detailed view of each life insurance company’s performance in 2022, please refer to the table below.
Top 10 Life Insurance Companies in the Philippines Based on Net Worth 2023
Philam Life remained the number 1 spot in the net worth category or the amount by which the assets exceeded their liabilities, followed by Insular Life, Sun Life, and Manulife.
Top 10 Life Insurance Companies in the Philippines Based on Assets 2023
An asset is anything expected to bring future benefits by generating cash flow, reducing expenses, increasing sales, etc. After several years, Sun Life has overtaken AIA Philippines in total assets.
How to Pick the Right Life Insurance?
Searching for the suitable insurance plan as a first-time buyer can be a challenging task, but it’s alright to feel overwhelmed. Everyone starts from somewhere. Once you have purchased your first insurance plan, selecting subsequent plans becomes easier. However, for now, you can use the following steps to discover the appropriate plan for you.
5 Steps in Getting the Right Insurance Plan
1. Choose 5 insurance companies
To begin with, start by limiting your options and selecting five (5) companies from the top 10. Then, identify the specific qualities you desire in an insurance provider, such as excellent customer service, strong financial stability, and competitive pricing.
However, it’s important to exercise caution when evaluating pricing because the most affordable option may not necessarily be the best insurance choice. Therefore, prioritize assessing the overall value of the policy over solely considering the cost.
In summary, begin by narrowing your options down to five top companies, determine your desired qualities, and evaluate the value of the policy instead of only the price.
2. Know what’s important for you
To begin, ask yourself about your top 5 priorities before considering any insurance plans. It’s important to have a clear understanding of yourself and your goals, and not simply sign up for a plan without a purpose.
Perhaps your priority is to protect your family from financial struggles, especially with the rapidly increasing cost of medical care. You may also want to secure your children’s future by providing them with the best education and a stable home. Retirement planning may also be on your mind, such as starting a business to keep you occupied.
Take the time to reflect on how important this decision is for you. Keep in mind that purchasing insurance is a long-term commitment, and problems may arise along the way that could cause you to abandon the plan without a clear purpose. You don’t want to waste your time and money, so set your goals accordingly.
3. Schedule an Appointment
Contact an advisor from each company and schedule a meeting with them. Don’t just skim through the proposals like you’re browsing a menu at a restaurant. Remember, life insurance is an investment in your future, so take the time to have a meaningful discussion.
When selecting an advisor, keep an eye out for these important qualities.
- Accessibility: Make sure your advisor is easily reachable in times of need. They should be available to check your account and provide regular policy updates. Don’t choose an advisor that intimidates you and make it hard to ask questions.
- Knowledgeability: Your advisor should be knowledgeable about insurance plans and options. They should be able to explain the pros and cons of each plan without reservation. Look for an advisor who cares more about helping you than making a sale.
- Dependability: Your insurance plan is your contingency plan for your family’s future, so you need an advisor who will be there when you need them. On average, advisors stay with an insurance company for only two years. Choose someone you can depend on to stay with you for the long-term.
Choosing the right insurance plan is important, but choosing the right advisor is just as crucial. Keep in mind these three qualities when selecting an advisor: accessibility, knowledgeability, and dependability.
4. Prepare questions
You can now get ready to address the questions that are most important to you. However, it’s not necessary to calculate every expense annually. For instance, you don’t need to know the production cost of a bag of chips you purchase.
In the third step, you have established your objectives. Price should not be the determining factor, but rather the value that the product offers.
During the product presentation, your advisor will respond to any inquiries you may have. Feel free to ask if you have any outstanding questions.
Remember, this plan is for your future, so make sure it fulfills your needs.
5. Finalize your decision
After meeting with the five advisors and reviewing their proposed plans, you can create a table or list to compare what you need and want from an insurance plan with each proposal. Based on this comparison, you can determine which plan is best suited to your goals.
Remember to only include riders or benefits that align with your needs and remove any that do not. This will help you get the insurance plan that is right for you.
I hope this blog has been helpful in guiding you towards finding the ideal insurance plan.
Cheers!
