Insurers expecting 25% growth in premium collections
06/14/2007 | 04:22 PM
An umbrella organization of life-insurance firms on Thursday said they are anticipating premium income collections to reach a record P70.5 billion this year, a 25 percent higher than the level recorded last year, due to the strong rise in sales of investment-linked products.
Philippine Life Insurance Association Inc. president Emilio de Quiros Jr. in an interview said that the premium income collections of life insurers are expected to grow between 20 percent and 25 percent this year.
De Quiros, who is also president of Ayala Life Assurance Inc., said the projected growth this year would come from variable life or investment linked life insurance policies that are invested in government securities as well as equities, compensating for sluggish growth in sales of traditional products.
Premium income collections of life insurers jumped 20.23 percent to P56.4 billion last year from P46.9 billion in 2005. This as premium income collections from investment-linked life insurance policies grew 140 percent to P11.12 billion last year from P4.65 billion in 2005 while collections from traditional life policies fell 8.41 percent to P8.71 billion.
De Quiros pointed out that that life insurance providers are venturing into variable life insurance policies that are not subject to the five percent premium tax imposed by the Bureau of Internal Revenue.
“Almost all of insurance companies are going into the variable life insurance business due to the flat growth in traditional life insurance," de Quiros said.
The Insurance Commission earlier released a report showing that insurance companies have failed to pay at leas P8 billionin premium tax to the BIR over the past five years.
IC head Evangeline Escobillo said the report findings were based on the premium income reported by insurance companies in their financial statements and the amount of premium taxes paid to the BIR. - GMANews.TV
Philippine Life Insurance Association Inc. president Emilio de Quiros Jr. in an interview said that the premium income collections of life insurers are expected to grow between 20 percent and 25 percent this year.
De Quiros, who is also president of Ayala Life Assurance Inc., said the projected growth this year would come from variable life or investment linked life insurance policies that are invested in government securities as well as equities, compensating for sluggish growth in sales of traditional products.
Premium income collections of life insurers jumped 20.23 percent to P56.4 billion last year from P46.9 billion in 2005. This as premium income collections from investment-linked life insurance policies grew 140 percent to P11.12 billion last year from P4.65 billion in 2005 while collections from traditional life policies fell 8.41 percent to P8.71 billion.
De Quiros pointed out that that life insurance providers are venturing into variable life insurance policies that are not subject to the five percent premium tax imposed by the Bureau of Internal Revenue.
“Almost all of insurance companies are going into the variable life insurance business due to the flat growth in traditional life insurance," de Quiros said.
The Insurance Commission earlier released a report showing that insurance companies have failed to pay at leas P8 billionin premium tax to the BIR over the past five years.
IC head Evangeline Escobillo said the report findings were based on the premium income reported by insurance companies in their financial statements and the amount of premium taxes paid to the BIR. - GMANews.TV
