Connect with us

Hi, what are you looking for?

Economy

COVID-19 insurance payouts hit nearly P4 billion last year

INSURANCE PAYOUTS related to the coronavirus disease 2019 (COVID-19) have reached P3.89 billion as of end-2020, a survey conducted by the Insurance Commission (IC) showed.

Out of the 111 regulated entities, 69 respondents reported to have received COVID-19-related claims — particularly from 22 life insurers, 15 nonlife insurers, 18 mutual benefit associations (MBAs), and 14 health maintenance organizations (HMOs).

“The aggregate COVID-19-related claims paid by the HMO sector per the three surveys accounted for 49% of said amount, or approximately P1.91 billion,” Insurance Commissioner Dennis B. Funa said in a statement on Tuesday.

“Life insurers were able to pay P1.46 billion in COVID-19-related claims in 2020, accounting for 38% of the whole amount. Meanwhile, MBAs paid P354.90 million (9%) and nonlife insurers paid P160.20 million (4%),” he added.

Broken down, the latest survey covering October to December 2020, showed that P1.48 billion had been paid for COVID-19-related claims. The amount is a 29.41% drop from the P2.09 billion covered in the second survey from May to September 2020.

Majority or 44% of the P1.48 billion were paid by life insurers at P646.84 million, of which P607.46 million were paid within contractual obligations. The figure is 14.26% lower than the previous survey reported at P708.51 million.

However, payment terms outside of contractual obligations increased by 6.09% compared with the level in the previous survey.

On the other hand, payouts made by HMOs were 45.63% less between the second and third surveys, from P1.09 billion to P592.47 billion.

Furthermore, payouts for medical reimbursements benefits increased by 30% at P12.36 million in October to December, compared to the reported P9.49 million amount in the previous survey.

For the entire 2020, death benefits were the biggest COVID-19 payout amounting to P1.22 billion, followed by in-patient benefits (P1.18 million), and out-patient benefits (P933.7 million).

Moreover, there is a reported steady upward trend in average claims paid by the four sectors per survey, taking into account the adjusted number of months in each. However, there are limitations in the study as financial impact of the quarantine measures and its effect on production of insurance and HMO agents were not included.

“At any rate, we hope that the aggregate amount of COVID-19-related claims paid in 2020 will educate our fellow Filipinos of the benefits of availing the insurance and HMO products and the benefits of MBA membership,” said Mr. Funa.

As of Monday, the Health department reported a total COVID-19 deaths in the Philippines at 19,983, while confirmed active cases reached 48,917. — I. B. Celis

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

The goal for most businesses is to grow, so the concept of bad growth may seem counterintuitive to a lot of business owners. However,...

Investing

Employees of all companies will be able to request flexible working arrangements when they start new jobs under proposals to be published by ministers....

Investing

Our perspectives on remote working have changed dramatically over the course of the pandemic. No doubt many employers in 2019 would have assumed that...

Economy

The Bangko Sentral ng Pilipinas (BSP) lowered the country’s balance of payments (BoP) surplus projection for this year, reflecting the lower current account surplus and the risks...

Economy

The Securities and Exchange Commission (SEC) is encouraging more companies to tap the capital markets, in hopes that there would be over 800 companies listed at...

Economy

Outsourcing firms operating in economic zones are allowed to implement remote work arrangements until March 2022 as the pandemic continues, the Finance department said...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!