While premium income of Philippines insurance brokerages reached PHP52.07 billion (US$1.02 billion) in 2016, up 2.46% from the previous year, commissions dropped slightly due to growth in direct insurance channels.
A statement by the Insurance Commission (IC) indicated that the 63 insurance brokerages in the country contributed 44.5% of the PHP117.29 billion (US$2.3 billion) total premium income generated by the country’s insurance industry for 2016.
General insurance made up the lion’s share of insurance premiums earned by intermediaries, with PHP44.19 billion (US$866 million), or 84.86%. Meanwhile, mediated life insurance premiums totalled PHP7.88 billion (US$154.4 million) or 15.14%.
The top five insurance brokerages accounted for over half of the sector’s premium income. According to the IC, these firms are: BDO Insurance Brokers, AON Insurance and Reinsurance Brokers,
Marsh Philippines, HSBC Insurance Brokers (Phils.), and Jardine Lloyd Thompson Insurance Brokers.
While premium income increased, there was a slight dip in brokerage commissions or revenue earned, with PHP6.53 billion (US$128 million) for 2016, down 2.25% from 2015.
“The insurance brokerage industry is confronted with the several challenges including the use of online platforms by insurance companies in selling their product and the continued growth in the sales force of insurance companies,” Insurance Commissioner Dennis Funa said in the statement.
“However, insurance brokers should take this as an opportunity to upgrade and improve their services for the benefit of their clients – the insuring public.”
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