The Philippine insurance industry is projected to grow at an average annual rate of 9.6% over the next decade, outpacing the country’s expected nominal gross domestic product (GDP) growth of 8.3%, according to the Allianz Global Insurance Report 2026. The forecast highlights the sector’s expanding role in the Philippine economy and positions the country among the fastest-growing insurance markets in the region.
The report estimates that the global insurance industry will expand by 5.3% annually through 2036, a rate slightly above projected global economic growth. Against this backdrop, the Philippines is expected to outperform both the global economy and the worldwide insurance sector, supported by sustained demand across life, property and casualty (P&C), and health insurance segments.
According to Allianz Research, the strong outlook reflects increasing awareness of financial protection, rising demand for insurance products and the continued development of the country’s insurance market. The sector is also expected to benefit from demographic changes, growing household incomes and efforts to address existing protection gaps.
The Philippine insurance market delivered a robust performance in 2025, with total premium income reaching US$9.2 billion (€7.9 billion), representing annual growth of 12.2%. This performance significantly exceeded the projected long-term growth rate and underscored the resilience of the industry.
Life insurance remained the principal driver of expansion. Premium income in the segment increased by 16.9% during 2025, well above its average annual growth rate of 8.7% recorded between 2015 and 2025. The report noted that strong demand for protection, savings and investment-linked products contributed to the segment’s performance.
Property and casualty insurance also recorded growth, with premiums rising by 5.6% over the year. The segment continued to benefit from increasing awareness among individuals and businesses of the need for protection against a broad range of risks. Meanwhile, health insurance registered a decline in 2025, largely due to exceptionally strong growth recorded in previous years, which created a high comparison base.
Despite that temporary slowdown, health insurance is expected to remain one of the strongest-performing segments in the years ahead. Allianz Research forecasts global health insurance growth of 6.7% annually through 2036, making it the fastest-growing insurance category worldwide. In the Philippines, health insurance is projected to expand by 8.3% per year, supported by efforts to improve healthcare coverage and strengthen 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, significantly above the global average of 4.9%. The report noted that higher interest rates are likely to continue supporting demand for life insurance products, particularly those that combine protection with savings or investment features.
The property and casualty segment is also expected to deliver strong growth. Annual expansion of 8.5% is forecast for the Philippine market, compared with a global average of 4.7%. This growth is expected to be driven by increasing demand for protection against property-related losses, business risks and other unforeseen events.
| Insurance Segment | Philippines Annual Growth Forecast | Global Annual Growth Forecast |
|---|---|---|
| Life Insurance | 10.0% | 4.9% |
| Property & 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 demonstrate the growing contribution of insurance to the country’s 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 evolving financial needs increase demand for private financial protection solutions.
Yang added that the Philippine market is well positioned to benefit from these trends, particularly in life and health insurance. He said insurers have significant opportunities to help narrow protection gaps and enhance financial resilience among households.
The Allianz report concludes that the Philippine insurance sector is likely to maintain growth well above both domestic economic expansion and global insurance industry averages. Supported by favourable demographic trends, rising demand for financial security and continued market development, the industry is expected to play an increasingly important role in strengthening financial protection and long-term economic resilience across the country.