Insurance claims related to Covid-19 reached over 16 billion pesos

INSURANCE claims related to Covid-19 reached 16.71 billion pesos between 2020 and 2021, with life insurance policies accounting for more than half or about 9.05 billion pesos of payouts, according to data from the Insurance Commission (IC).

The IC said 23% or 3.89 billion pesos of Covid-related claims were paid between the start of the pandemic in March 2020 and the end of 2020, while the bulk of 77% or 12.82 billion pesos have been claimed in 2021.

IC Commissioner Dennis Funa said that for life insurance policies, the 9.05 billion peso claim amount is about 9,500 death benefits.

Dominguez noted in Funa’s report that compared to Department of Health (DOH) data of around 51,000 deaths at the end of 2021 attributed to Covid-19, less than a fifth, or just 18.6% , were covered by insurance based on IC data.

Finance Secretary Carlos Dominguez III said the low rate of insurance coverage for pandemic-related deaths highlights the importance of ensuring financial protection to prepare for emergencies and other unexpected incidents.

Funa said the rest of pandemic-related insurance claims in 2020 and 2021 came from health maintenance organizations (HMOs), which accounted for 39% or 6.44 billion pesos of payouts, relief associations mutuals (MBA) with a 5% share at P833 million, and non-life policies with two percent or P382 million.

“Notably, outpatient benefits, i.e. people who were not confined to hospital, have the highest number of claims paid with 413,000 for the whole of 2021. Followed by claims in under other benefits at 54,000,” Funa said.

Death benefits

In 2021 alone, death benefits had the largest share with 6.8 billion pesos or 53% of the total payment, followed by inpatient benefits or those confined to hospitals at 27% or 3.5 billion. pesos.

Outpatient benefits for 2021 accounted for 15% or 1.92 billion pesos of claims, he added.

In 2020, Commissioner IC Funa said the largest share of Covid-related claims came from the HMO sector with 1.9 billion pesos or 49% of payouts, while life insurance accounted for 1.46 billion pesos or 38%. The rest were non-life insurance claims amounting to 160.2 million pesos (four percent) and MBAs with 354.9 million pesos (nine percent)

“It should be noted that in 2021, the four industries have already exceeded 35% of their claims payment for all of 2020,” Funa said.

Funa said he has not received any indication from the insurance industry of an increase in premiums following this development, as he believes he continues to have the capacity to absorb these payments.

He also pointed out that the 3.8 billion pesos in Covid-related claims in 2020 represented only 3% of the total benefit payments of 120.76 billion pesos in the four sectors – life, non-life, HMO and MBA.

The 12.82 billion pesos in Covid-related claims in 2021 represented 10.25% of benefit payments totaling 112.19 billion pesos in the third quarter of that year, Funa said.

“So despite this, the insurance and HMO sectors remain resilient and, in fact, all four sectors posted net profit for the third quarter of 2021,” Funa pointed out.

The total assets, investments, premiums and net income of the insurance and HMO sectors recorded growths of 12.91%, 14.84%, 24.93% and 17.28% respectively. he added. (PR)

Comments are closed.