Insurance Commission: Pre-Need Industry’s Total Premium Income Grows 7.30% in 2023

Total premium income collected by pre-need companies amounted to P22.73 billion as of the as of year-end of 2023. This is a 7.30% increase from the P21.18 billion premiums collected in 2022.

Data from the Insurance Commission also indicated the increase in net income of the pre-need industry, which amounted to P2.09 billion in 2023. This is a big 385 percent (385%) increase from the net income in 2022, which amounted only to P429.6 million.

The Insurance Commission attributed the big increase in net income to the significant increase in interest income earned by pre-need companies from their respective trust funds. The respective trust funds of pre-need companies are mandated by law to be maintained for the sole purpose of paying pre-need benefits.

The surplus in trust funds of pre-need companies also increase year-on-year, indicating better capability by the pre-need industry to pay the pre-need benefits under all the pre-need plans that they sold.

As of the end of 2023, investment in trust funds of pre-need companies amounted to P128.03 billion, while pre-need reserves or contingent liabilities, only amounted to P122.33 billion, resulting in a trust fund surplus of P5.7 billion.

In terms of financial stability of pre-need companies, total net worth of the pre-need industry amounted to P23.22 billion, or an 11.28% increase in total net worth from figures registered in 2022.

Nine (9) pre-need companies reported increases in their net worth, with one (1) pre-need company increasing its net worth by as much as 32.44%.

The Insurance Commission’s figures on the pre-need industry as of 31 December 2023 were collated from the financial submissions of all of the sixteen (16) pre-need companies with either existing licenses or have pending applications for renewal of license, except for Caritas Financial Plans, Inc., which was already placed under conservatorship last July 2023.