The P50,000 problem: Why most Filipinos remain uninsured

MANILA, Philippines – In a population of 116.6 million, only 28% of Filipinos hold a life insurance policy in 2025. The industry penetration remains stuck at 1.7% of GDP, one of the lowest among the countries in Southeast Asia, according to data from analytics firm Inquiro.

The newly released PURPLE Report, commissioned by EastWest Ageas Insurance, also showed that the average Filipino has only set aside P50,000 for emergencies, which is barely enough to cover a routine medical procedure, let alone a major illness like ischemic heart disease — the country’s top cause of death — where treatment can cost P690,000. 

This readiness gap is not just financial. It is structural, cultural, and educational. It is also deeply personal.

Slow, uneven adoption, and who’s really buying

New analytics from Inquiro’s MarketScan dataset reveal that while the digital shift toward insurance is real, it remains uneven across the country.

Among the 5.2 million Filipinos tracked for app-based insurance activity, adults aged 29-37 and middle-aged adults aged 38-51 emerge as the most frequent users.

During the annual December surge, when many conduct financial checkups and sign up for new policies, middle-aged adults alone make up 36% of all high-frequency users. Urban areas continue to dominate adoption, with the National Capital Region (NCR), Cebu, Baguio/Benguet, and Davao City showing the strongest digital footprint.

Meanwhile, several municipalities, particularly in remote parts of Mindanao and Tawi-Tawi, recorded zero insurance app usage as of May 2025. 

The numbers paint a clear picture: interest is rising, but the gaps are stark.

While the figures can be discouraging, Sjoerd Smeets, president and CEO of EastWest Ageas Insurance,  thinks it can also be seen as an opportunity.

“The Philippine market has tremendous potential,” he told Rappler. “It’s young, digitally connected, and increasingly aware of the importance of financial security.”

Cracking industry challenges

Smeets cited the top three challenges facing the Philippine insurance market:

1. The protection gap and affordability

Many Filipinos underestimate the financial impact of illness or accidents, and products often feel out of reach.

But several insurers now offer a wide portfolio, such as the P22-per-day entry-level term plans of EastWest Ageas for comprehensive critical illness and investment-linked solutions.

2. Low financial literacy

Insurance documents can feel intimidating. So insurers need to respond to this challenge by offering plain-language materials, advice-led sales, and highly accessible educational campaigns on social media.

3. Digital trust and service speed

Customers expect seamless, secure experiences. To meet this, insurers can offer self-service options, and even use generative AI to help advisors explain complex products and underwriting questions instantly and clearly.

Closing the protection gap

Smeets believes insurers must simplify, educate, and localize, while policymakers should enable digital onboarding and inclusion.

“Insurance isn’t just for the wealthy,” he stressed. “It’s for anyone who loves someone and wants to protect them.”

According to Smeets, the PURPLE Report’s findings are sobering. Inflation and unstable incomes further widen the readiness gap, especially among those aged 22 to 39.

Yet even amid these challenges, resilience persists, with many Filipinos relying on family support and personal resourcefulness to get by. 

Smeets believes this is precisely why insurance must evolve and be communicated in a more human, relatable way. He also shares a simple lesson from his childhood: saving begins with discipline, not income. 

For young Filipinos, he recommends starting with an emergency fund and then securing essential layers of protection, beginning with health coverage, followed by accident insurance and income protection for breadwinners.

As income increases, these foundations can grow into long-term savings and legacy planning. 

“Insurance isn’t about fear,” Smeets said. “It’s about care — caring for yourself and the people who matter most.”

“Every Filipino deserves security,” he added. 

For millions of uninsured Filipinos balancing aspirations with daily responsibilities, he hopes that readiness to any life circumstances becomes not a privilege, but a possibility. – Rappler.com