The combined COVID-19-related claims paid by life and non-life insurers, mutual benefit associations and health maintenance organizations reached P3.89 billion in 2020, according to the results of the third COVID-19-related claims survey released by the Insurance Commission Tuesday.
The survey was conducted to assess the financial impact of COVID-19 on the regulated entities.
Insurance Commissioner Dennis Funa said life insurers paid P1.46 billion in COVID-19-related claims in 2020, accounting for 38 percent of the whole amount.
“Meanwhile, MBAs paid P354.90 million [9 percent] and non-life insurers paid P160.20 million [4 percent],” Funa said. He said the aggregate COVID-19-related claims paid by the HMO sector per the three surveys accounted for 49 percent of the amount, or about P1.91 billion.
Twenty-four life insurance companies, 43 non-life insurance companies, 27 MBAs and 17 HMOs participated in the third survey, or a total of 111 regulated entities. The respondents constituted 75.51 percent of the total 147 licensed life and non-life insurers, MBAs and HMOs.
The IC said of the 111 respondents, 69 reported to have received COVID-19-related claims from October to December 2020, including 22 life insurers, 15 non-life insurers, 18 MBAs and 14 HMOs.
“It will be recalled that the first survey covered the months of March to April 2020; and the second survey covered the months of May to September 2020. The third survey, the results of which were recently released, covered the months of October to December 2020,” Funa said.
Death benefit claims constituted the highest paid COVID-19-related claims, amounting to P1.22 billion in 2020. This was followed by COVID-19-related claims for in-patient benefits amounting to P1.18 billion and out-patient benefits amounting to P933.7 million.
Per the third survey, life insurers paid a total of P646.84 million in COVID-19-related claims from October to December 2020, which was 12.57 percent less than P739.83 million reported in the second survey covering the months of May to September 2020.
The IC said that in the third survey, P607.46 were paid within contractual obligations, which was 14.26 percent less than the reported amount of P708.51 million in the second survey. In terms of payments outside of contractual obligations, life insurers paid P39.39 million from October to December 2020, or 6.09 percent higher than P31.32 million reported in the second survey.
Non-life insurers paid a total of P103.65 million for the same period covered by the third survey, 148.48 percent more than the reported amount of P41.71 million in the second survey. Of the P103.65 million, P74.91 was paid within contractual obligations.
