Philippines Motor Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 9.00 % |
| Market Concentration | Medium |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Philippines Motor Insurance Market Analysis
During the COVID-19 pandemic, the Philippines Motor Insurance Market faced economic uncertainty, lockdown restrictions, and due long-term downturn in the auto sector. It had a negative effect on motor insurance. Even before the onset of the pandemic, adverse economic developments, mature market conditions, and industry disruptions slowed down the premium growth of the motor insurance market.
There is an increase in penetration of auto insurance across both commercial/businesses and individual segments. The cost of maintenance of the vehicles has risen as vehicles become digital and connected, which makes insurance a viable alternative. The bargaining power of customers in the motor insurance market around the Philippines has increased, and the best insurance deals with apt risk cover are being taken into consideration because of the entry of multiple players into the market. The vehicle ownership rate and the used vehicle sales in the Philippines are growing at a substantial rate which would result in healthy growth in the Philippines Motor Insurance Market. Overall, insurance grew during the study period, with growth mainly driven by the expansion of the middle-class in the Philippines.
Philippines Motor Insurance Market Trends
This section covers the major market trends shaping the Philippines Motor Insurance Market according to our research experts:
Increase in Motor Vehicle Sales
The government of the Philippines prioritizes the automotive segment as a key revenue generator and is encouraging the flow of FDIs in the automotive industry. As the overall purchasing power of customers, mainly middle-class sectors, have been increasing in recent years, the demand for vehicles has also been increasing. There is an increase in sales of motor vehicles in the Philippines because of the availability of motor vehicles for sale, which is because the Philippines' automobile industry is supported by multiple factors such as labor availability, R&D efforts, geographic advantage, and government support. In 2021, motor vehicle sales saw potential growth in sales, which were mainly dominated by passenger and commercial motor vehicles. Compared to the previous year's sales, which were mainly affected due to the pandemic and semi-conductor shortage, the current year's sales showed a positive growth rate. In 2018, after thirteen consecutive years of growth, the introduction of a new tax (called "TRAIN") pushed up the price for all vehicles (and fuel), but pickups and vans, hitting the market and altering the competitive landscape and sales fell down. In 2019, the industry progressively adopted the effect of TRAIN, and total vehicle sales have Increased.
Potential for Fintech growth
The Insurance Commission continues to push for digitalization and further innovation by promoting better customer service with more appropriate products, thus growing the level of insurance penetration. Insurance companies have turned to insurance technology (insurtech) which is another way to better serve their growing market. In order to encourage the use of insurtech, the Insurance Commission released a policy statement enabling insurance companies, subject to certain security requirements, to market their policies using mobile phone applications and to provide flexible payment mechanisms instead of the traditional payment methods. Self-service dashboards, chatbots, Email notifications, digitization of parts of the claims process, and insurance comparison tools to direct consumers to the best deal have all appeared in recent years. In addition, in order to encourage the use of technology, the Insurance Commission released a policy statement enabling insurance companies, subject to certain security requirements, to market their policies using mobile phone applications and to provide flexible payment mechanisms instead of the traditional payment methods.
Philippines Motor Insurance Industry Overview
The Philippines motor insurance market is semi-consolidated in nature in terms of market share. Some of the major players operating currently dominate the market. The market is expected to grow during the forecast period due to the increase in sales of motor vehicles, and many other factors are driving the market.
Philippines Motor Insurance Market Leaders
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Malayan Insurance Company, Inc.
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Pioneer Insurance & Surety Corporation
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Prudential Guarantee & Assurance, Inc.
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BPI/MS Insurance Corporation
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Charter Ping An Insurance Corporation
*Disclaimer: Major Players sorted in no particular order
Philippines Motor Insurance Market News
- On 9th July 2021, Malayan Insurance Co. Inc. launched the Auto Master in the Philippines. It is a comprehensive automobile insurance policy, which comes with a Call Malayan Insurance Live Line (CAMILLE) service and a free membership roadside assistance program. CAMILLE has a concierge service that allows the policyholder to call for restaurant referral and reservation assistance, driver's license and car registration information assistance, car washing and detailing assistance, 24-hour fire assistance referral, and arrangement of hotel accommodation.
- On 17th November 2020, PGAI introduced a new payment channel offering customers more ways to settle the PGAI premium. The channel can be used for all types of insurance types, including motor insurance and others. The payment is made by going to any BDO branch to transact over-the-counter or logging on to online.bdo.com.ph to pay online.
Philippines Motor Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Insights into Latest Technologies Used in the Industry
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Third Party liability Insurance
5.1.2 Comprehnsive Motor Insurance
5.1.3 Others
5.2 By Distribution Channel
5.2.1 Agency
5.2.2 Banks
5.2.3 Direct
5.2.4 Others
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 Malayan Insurance Company, Inc.
6.2.2 Pioneer Insurance & Surety Corporation
6.2.3 Prudential Guarantee & Assurance, Inc.
6.2.4 BPI/MS Insurance Corporation
6.2.5 Charter Ping An Insurance Corporation
6.2.6 FPG Insurance Company, Inc. (Federal Phoenix)
6.2.7 PNB General Insurers Company, Inc.
6.2.8 AIG Philippines Insurance Company (Chartis Phils. Inc.)
6.2.9 Standard Insurance Company, Inc.
6.2.10 PGA Sompo Insurance Corporation*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Philippines Motor Insurance Industry Segmentation
Motor Insurance is a type of insurance policy that covers the customers' vehicles from potential risks financially. The policyholder's car or two-wheeler is provided financial security against damages arising out of accidents and other threats. The Philippines motor insurance market is segmented by type (compulsory third-party liability insurance, comprehensive motor car insurance) and by distribution channel (agency, banks, direct, and others).
| By Product Type | |
| Third Party liability Insurance | |
| Comprehnsive Motor Insurance | |
| Others |
| By Distribution Channel | |
| Agency | |
| Banks | |
| Direct | |
| Others |
Philippines Motor Insurance Market Research FAQs
What is the current Philippines Motor Insurance Market size?
The Philippines Motor Insurance Market is projected to register a CAGR of greater than 9% during the forecast period (2024-2029)
Who are the key players in Philippines Motor Insurance Market?
Malayan Insurance Company, Inc., Pioneer Insurance & Surety Corporation, Prudential Guarantee & Assurance, Inc., BPI/MS Insurance Corporation and Charter Ping An Insurance Corporation are the major companies operating in the Philippines Motor Insurance Market.
What years does this Philippines Motor Insurance Market cover?
The report covers the Philippines Motor Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Philippines Motor Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Philippines Motor Insurance Industry Report
Statistics for the 2024 Philippines Motor Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Philippines Motor Insurance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
