realized a net premium growth of only 6.6% and 5.9%, respectively, over 2004 levels. This is comparatively lower than the almost 10% growth in net premiums from 2003 to 2004. As indicated in the previous section, this translates to only a little over one percent of the country’s gross domestic product indicating a low volume of insurance activity in the whole economy. Table 4 shows industry growth indicators. Table 4. Industry growth indicators, 2004-2005
Net Premiums Life Non-life Prof. Reins Assets Life Non-life Prof. Reins Investments Life Non-life Prof. Reins
2005 (Php billions)
2004 (Php billions)
% increase
64.04 46.99 15.93 1.12 349.61 273.57 69.94 6.10 255.86 217.51 34.86 3.49
60.05 44.10 15.04 0.91 311.02 240.04 66.25 4.73 226.54 192.57 31.44 2.53
6.64% 6.55% 5.92% 23.08% 12.41% 13.97% 5.57% 28.96% 12.94% 12.95% 10.88% 37.94%
Source: Insurance Commission Annual Report, 2005
During the last five (5) years, there was only one life insurance company that closed its operation. There are however foreign companies that sold their insurance portfolio business to local companies such as the Berkley to Phil Prudential Life and the Manila Bankers Life to Paramount Insurance. With respect to MBAs, there were two associations that liquidated their operations and at present, three are under conservatorship. 3. The Regulatory Framework for the Insurance Industry in the Philippines Unlike other countries that have a plethora of laws and other types of legal issuances on insurance, the Philippines has the good fortune of having a comprehensive Insurance Code that provides the legal foundation or framework for the regulation and supervision of insurance companies and product offerings. Specific provisions of the Insurance Code and the rules and regulations issued by the Insurance Commission under various Circulars provide the general policy and regulatory framework for the provision of insurance per se.
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