Insurance Commission premium income hits P57.92 billion from brokerage.
THE Insurance Commission (IC) has reported P57.92 billion in premium income generated from brokerage activities as of end-2017, expanding by 11.23 percent, from the P52.07 billion in 2016.
IC data showed premium income reported by 63 insurance brokerage companies in the country totaled P57.92 billion as of end-2017.
'Insurance brokerage industry has reached a total amount of mediated premium of P57.92 billion as of the end of 2017, up by 11.23 percent from the P52.07 billion total premiums produced as of end-2016,' Insurance Commissioner Dennis B. Funa said.
For 2017 around 20.56 percent or P57.08 billion of the P277.58 billion total premium generated by life and nonlife insurance sectors was generated from brokerage activities.
On one hand, the mediated premium in life insurance amounted to P8.70 billion, which represents 15.02 percent of the overall mediated premium by the insurance brokerage industry. On the other hand, mediated premium in nonlife insurance business amounted to P48.38 billion, which represents 83.54 percent of the total amount of mediated premium.
The insurance brokerage industry, likewise, generated membership fees for the health maintenance organization business in the amount of P837.34 million for the same year.
The IC said the top 10 insurance brokers that produced 75 percent of the total premium produced by the insurance brokerage industry include Anchor Insurance Brokers Corp., AON Insurance and Reinsurance Brokers Philippines Inc., BDO Insurance Brokers Inc., Gotuaco Del Rosario Insurance Brokers Inc., HSBC Insurance Brokers (Phils.) Inc., Intertrade Insurance Brokers, Jardine Lloyd Thompson Insurance Brokers Inc., Lockton Philippines Insurance and Reinsurance Brokers Inc., Marsh Philippines Inc. and Unicon Insurance Brokers Corp.
Based on brokerage revenue or commissions earned, the insurance brokerage industry reported a total of P7.32 billion as of end 2017, up by 12.10 percent from P6.53 billion in 2016.
'As of end of 2017, commissions of insurance brokers were mainly from the nonlife insurance business in the amount of P6.17 billion, which represents 84.21 percent of the total commissions earned,' he added.
Meanwhile, in terms of the reinsurance brokerage business in the country, the 19 companies comprising the reinsurance brokerage industry reported a total income of P2.18 billion as of end-2017, or an increase of 61.48 percent, from P1.35 billion total premiums produced as of end-2016.
The top 5 companies that produced 70 percent of the premium produced by reinsurance brokers in the country were: PhilPacific Insurance Brokers and Managers, Jardine Lloyd Thompson Insurance Brokers, KRM Reinsurance Brokers, Pana Harisson Reinsurance and Alson Insurance Brokers Corp.
The total commissions earned by reinsurance brokers, on the other hand, slightly decreased by 8.62 percent to P154.21 million as of 2017, from P168.75 million in 2016.
Under the current organization structure of the IC, the Brokers Division is in charge of conducting off-site and on-site examination on the affairs, financial condition and methods of doing business of insurance and/or reinsurance brokers.
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|Publication:||Business Mirror (Makati City, Philippines)|
|Date:||Sep 26, 2018|
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