Insurance payouts for coronavirus disease 2019 (Covid-19) pandemic-related claims reached P3.89 billion by the end of 2020, according to the Insurance Commission (IC),
The agency said in a statement on Tuesday that health maintenance organizations (HMOs) paid the most Covid-19-related claims, amounting for P1.91 billion, or 49 percent of the total.
Life insurers paid P1.46 billion, or 38 percent of the total, followed by mutual benefit associations (MBA) with P354.90 million, or 9 percent, and nonlife insurers with P160.20 million, or 4 percent.
Death benefit claims related to Covid-19 were the most expensive, costing P1.22 billion in 2020. Following are claims for Covid-19-related in-patient and out-patient benefits of P1.18 billion and P933.7 million, respectively.
“At any rate, we hope that the aggregate amount of Covid-19-related claims paid in 2020 by life and non-life insurers, MBAs, and HMOs either within or outside of contractual obligations amounting to P3.89 billion, which by itself is no small feat, will continue to inspire consumer confidence in said four respondent sectors; and will educate our fellow Filipinos of the benefits of availing the insurance and HMO products and the benefits of MBA membership,” Insurance Commissioner Dennis Funa said.
He has previously stated that the payouts were “a clear testament of such regulated entities’ financial resiliency notwithstanding the challenges posed by the pandemic.”
The newest findings, according to the IC, are based on the third survey, which was conducted from October to December 2020 throughout the life, nonlife, MBA, and HMO industries.
It said, “Said survey was conducted to assess the continuing financial impact of Covid-19 on said regulated entities.”
A total of 111 regulated businesses participated in the third poll, including 24 life insurance companies, 43 non-life insurance companies, 27 MBAs, and 17 HMOs.
Said number of respondents constitutes 75.51 percent of the total number of licensed life and non-life insurers, MBAs, and HMOs amounting to 147.