The Philippine pre-need industry has posted a net income of PHP2.07 billion (US$41.2 million) for 2016, up by 26.5% from PHP1.64 billion in 2015, according to data released by the Insurance Commission.
The industry’s total premiums, on the other hand, declined by less than 1% to PHP16.29 billion in 2016 from PHP16.36 billion in 2015.
In 2016, the pre-need industry sold 697,869 plans with a total contract cover of PHP28.19 billion. This is an increase of less than 1% from the 694,163 plans sold in 2015 with a total contract price of PHP27.79 billion.
While the sales of life plans rose by 1.35% year-on-year to 680,649 plans in 2016 from 671,564 plans in 2015, the number of pension and educational plans sold in 2016 declined by 24.7% from 21,684 to 16,328 and 2.51% from 915 to 892, respectively.
The sector’s total assets rose by 2.62% to PHP120.10 billion at the end of last year.
Insurance Commissioner Dennis Funa said that the public has regained trust in pre-need products citing the significant increase in the sale of pre-need plans. In 2010, when the Insurance Commission assumed regulation and supervision over the pre-need industry, the sector reported a total of 162,520 plans sold. In 2016, this number increased by 329.4% or to 697,869 plans sold.
Commissioner Funa added: “This increase can be attributed to the significant increase in the number of life plans sold by seven pre-need companies actively engaged in selling life plans which take up 97.5% of the total number of plans sold by the industry.”
The top three pre-need companies in terms of the number of life plans sold are: St. Peter Life Plan, Eternal Plans and PhilPlans First. The top three companies in terms of pension plans sold out of the nine companies actively engaged in selling such plans are: Caritas Financial Plans, PhilPlans First and Eternal Plans. The lone company actively engaged in selling education plans in 2016 was PhilPlans First.