Understanding the Car Insurance Market in the Philippines

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December 14, 2018

Getting a car insurance can be confusing, especially for first-time vehicle owners. With more than 60 auto insurance providers in the Philippines, finding the right insurer is definitely a test. However, never settle for less. Buying an “okay” car insurance can be a pain so be wise and understand your policy from start to end.

To land a more beneficial insurance deal, take the time to understand the car insurance market. Here’s an in-depth guide to help you out.

Factors that Affect Comprehensive Car Insurance Rate

Not all insurance rates are equal. Unlike CTPL, comprehensive auto insurance policies don’t have a fixed rate as they depend on many factors. Below, gain a better understanding of the car insurance market by determining the factors that affect a policy’s rate.

How Auto Insurance Companies Earn

According to the World Health Organization, 1.25 million people around the world die every year because of road crashes. If all of these people file a claim for their accident—amounting to millions or even billions of cash—will auto insurance companies still earn? The answer is yes. Despite millions of claims, car insurance companies still take home a profit ultimately contributing to industry growth.

The concepts that keep car insurance companies profitable work the same way today as they did 40 or 50 years ago. This is why the industry keeps growing and why new insurance companies sprout almost every decade. To understand this better, here are three basic principles that make car insurance companies earn.


When you buy an insurance policy, you are required to pay a fee called a premium. Car insurance companies put this premium to short- and long-term interest-earning investments to grow and secure their funds. Interest earnings represent a large source of the overall profits insurance companies generate.

Underwriting Income

Underwriting income derives from the difference between how much money insurers collect for policies and how much money insurers release when a client files a claim. For example, if a client pays P20,000 for a premium policy with a validity of one year but only submits P5,000 worth of claims, the insurance company automatically earns P15,000 from that client. However, if the insurance company pays more than P20,000 for the claim, then they suffer a loss.


Insurance companies also buy policies for themselves. When insurers have too many claims, they purchase policies from other providers to keep them in business. This strategy utilizes the concept of shared risk and limits of liability.

A Look Into the Car Insurance Market: Top Companies in the Philippines

AFP General Insurance

AFP General Insurance is the primary non-life insurer provider of the Armed Forces of the Philippines. Established in 1979, AFPGEN has extended their services to private sectors providing motorcar, marine, and aviation insurance coverage.

Charter Ping-An

Founded in 1960, Charter Ping-An Insurance Corporation prides itself on providing not just car insurance but non-life insurance and security products as well. Owned by AXA Philippines, the company has 22 branches nationwide.

FPG Insurance

Formerly known as Federal Phoenix Assurance Corporation, FPG Insurance provides a comprehensive range of general insurance products for businesses and individuals in the Asia Pacific region. The company is a subsidiary of the Zuellig Group of Companies.

MAPFRE Insular Insurance Corporation

Launched in 1934, MAPFRE is the largest non-life insurance company in Latin America. Primarily established as an automotive insurance provider, the company now offers Travel Insurance, OFW Insurance, Engineering Insurance, and Surety Insurance among many others.

Milestone Guaranty and Assurance

Milestone Guaranty and Assurance Corporation began their operations in 1962 when only few insurance companies were operating in the Philippines. Committed to providing top-notch non-life insurance policies, the company provides comprehensive plans, including Casualty Insurance, Engineering Insurance, Personal Accident Insurance, and Motor Insurance among many others.

Oriental Assurance Corporation

Apart from motorcar insurance, Oriental Assurance Corporation also provides general insurance products such as fire, marine, aviation, engineering, and electronic equipment solutions. The company promises unique insurance needs at a reasonable price.

Pioneer Insurance and Surety

Pioneer Insurance and Surety Corporation is one of the leading insurance companies when it comes to property, marine, motor, and aviation policies. Established in 1964, the company is in partner with Allianz AG of Germany, a financial services company that focuses in insurance and asset management.

QBE Seaboard Insurance

Despite being new in the industry, QBE Seaboard is one of the world’s top 20 general insurance companies. Headquartered in Sydney, Australia, the company provides insurance products to businesses and individuals worldwide.

SGI Philippines

SGI Philippines is one of the largest insurance companies in the Philippines. They aim to serve different sectors with quality insurance products such as motor, health, and marine. Their latest product—Micro Insurance—services the risk and protection needs of the masses at an affordable price.

Standard Insurance

Standard Insurance offers a wide range of property and general insurance products for individuals, small to medium enterprises, and local and global corporations. They are one of the leading motorcar insurance companies in the Philippines with more than 52 branches nationwide.

For a more complete list of car insurance companies in the Philippines, click here.