Philippine insurers trapped by price tariffs as disaster risks escalate

Non-life combined ratios surged to 95.4% as operational costs and disaster risks mount.

Philippine insurers are dealing with higher costs and heavy disaster risk, but they are also getting some relief from improving reinsurance terms, according to Gallagher Re’s 2025 APAC market report. 

The main headwinds are clear as the Philippines remains a tariffed market, limiting insurers’ ability to adjust prices freely.

The country also faces a wide natural catastrophe protection gap, with typhoons and floods leaving a large share of losses uninsured. 

At the same time, expense ratios have been rising, adding pressure on profitability. In 2024, the Philippines posted a non-life combined ratio of 95.4%, up from 91.1% in 2023. 

Still, there are tailwinds. Non-life gross written premiums rose 10.3% in 2024 to about $2.3b, while total insurance premiums reached $8.4b. 

The broader economy grew 5.7%, giving insurers support from rising business activity and household demand. 

Reinsurance pricing also improved in 2025, with risk and catastrophe business for loss-free accounts down by 5% to 10%, easing pressure on companies operating under regulated pricing. 

On regulation, the shift to IFRS 17 has been pushed back to 2027. 

Meanwhile, general insurers and reinsurers with gross written premiums above $34m (PHP2b) are required to submit their Own Risk and Solvency Assessment reports, pointing to a tighter focus on capital and risk management.