The Philippine insurance industry is expected to expand at an average annual rate of 9.6% over the next decade, surpassing the country’s projected nominal gross domestic product (GDP) growth of 8.3%, according to the Allianz Global Insurance Report 2026. The forecast suggests that the insurance sector will continue to play an increasingly significant role in the nation’s economic development and financial security framework.
The projected growth rate also exceeds the expected pace of global insurance industry expansion. Allianz estimates that the worldwide insurance market will grow by 5.3% annually through 2036, slightly ahead of anticipated global economic growth. In comparison, the Philippine market is forecast to record substantially stronger performance, driven by rising demand across life, property and casualty (P&C), and health insurance segments.
The report indicates that growing awareness of financial protection, demographic changes, increasing household incomes and efforts to narrow insurance protection gaps are expected to support long-term market expansion. These factors are likely to strengthen demand for insurance products among both individuals and businesses.
The Philippine insurance market delivered a strong performance in 2025, with total premium income reaching US$9.2 billion (€7.9 billion), representing annual growth of 12.2%. The result exceeded the industry’s projected long-term growth trajectory and reflected solid demand across major insurance categories.
Life insurance was the principal contributor to the sector’s growth. Premium income in the segment increased by 16.9% during 2025, significantly above its average annual growth rate of 8.7% recorded between 2015 and 2025. According to the report, demand for protection, savings and investment-linked products continued to support the segment’s expansion.
The property and casualty insurance sector also recorded positive growth, with premiums rising by 5.6% during the year. Growth in the segment was supported by increasing recognition of the importance of risk protection among households, businesses and commercial enterprises.
Health insurance was the only segment to register a decline in 2025. However, the report attributed this performance largely to unusually high comparison figures following exceptional growth in previous years rather than any structural weakness in the market.
Despite the temporary slowdown, health insurance is expected to remain one of the fastest-growing segments in the years ahead. Allianz Research forecasts that global health insurance premiums will increase by an average of 6.7% annually through 2036, making it the fastest-growing insurance category worldwide. In the Philippines, health insurance is projected to expand at an even stronger rate of 8.3% per year, supported by initiatives aimed at improving healthcare coverage and strengthening financial protection against medical expenses.
The outlook for life insurance remains particularly favourable. Allianz Research expects the Philippine life insurance market to grow by approximately 10.0% annually over the next decade, compared with a global average of 4.9%. The report noted that higher interest rates are expected to continue supporting demand for life insurance products, particularly those combining protection with savings and investment features.
Meanwhile, the Philippine property and casualty insurance market is forecast to grow by 8.5% annually, considerably higher than the global average of 4.7%. The expansion is expected to reflect growing demand for protection against a wide range of risks, including property damage, business-related losses and other unforeseen events.
| Insurance Segment | Philippines Annual Growth Forecast | Global Annual Growth Forecast |
|---|---|---|
| Life Insurance | 10.0% | 4.9% |
| Property and Casualty Insurance | 8.5% | 4.7% |
| Health Insurance | 8.3% | 6.7% |
| Overall Insurance Market | 9.6% | 5.3% |
Henry Yang, Chief Investment Officer of Allianz PNB Life, said the projections highlight the growing importance of insurance in the Philippines’ economic and social development. He noted that Asia is expected to remain the primary growth engine of the global insurance industry as demographic shifts and changing financial needs increase demand for private financial protection solutions.
Yang added that the Philippine market is particularly well positioned to benefit from these trends. He pointed to opportunities within the life and health insurance sectors, where insurers continue working to reduce protection gaps and strengthen household financial resilience.
According to the Allianz report, the combination of favourable demographic trends, increasing awareness of financial security, rising demand for insurance products and continued market development is expected to support sustained growth across the sector. As a result, the Philippine insurance industry is projected to expand at a pace well above both domestic economic growth and global insurance market averages, reinforcing its role as an important contributor to the country’s long-term financial stability and economic resilience.