Philippines non-life insurers could increase their premium rates by 10% to 15% during 2025 as natural catastrophes have affected the reinsurance market.
Malayan Insurance Company COO and Philippines Insurers and Reinsurers Association (PIRA) trustee Eden R Tesoro told media persons, “Sometimes, we really have to adjust because as it is, it’s hard to write losses. It’s not sustainable if insurers will continue to price at the same level even though your cost of reinsurance is already very high.”
According to a news report in online newspaper Manila Bulletin, PIRA executive director Michael L Rellosa said the group cannot increase the premium without informing the Insurance Commission (IC) about the increase with details of the reasons for the same.
He said, “We can’t just increase our prices. It has to be approved by the regulators and even if you can, of course, you have to balance with the market conditions. Based on seasonal renewals of reinsurance programmes, which are usually in December, April and July, PIRA could notify the IC about a rise in premium prices appropriately.”
Ms Tesoro said premiums will likely continue to increase in the next few years but with “little dips” depending on each company’s portfolio and risks. She said it depends on the major portfolio the specific insurer handles, whether motor, fire or all portfolios.
She said, “One of the reasons why we have to be cautiously hopeful is because of climate change, and while we say that even if globally the prices of reinsurance seem to plateau, ultimately it comes down to each particular company’s portfolio and how exposed you are. So, reinsurers will be looking at that.”
She said the investments of nonlife insurers could also be affected by US President Donald Trump’s trade policies. These will affect trade, which in turn will obviously affect the economy and anything that affects the economy, will affect the insurance industry. Either we insure less goods or increase the cost.