Philippines Motor Insurance Market Size, Share and Outlook - Growth Analysis Report and Forecast Trends (2026-2035)

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Philippines Motor Insurance Market Growth

In March 2024, the Insurance Commission (IC) of the Philippines amended its scheme of Compulsory Motor Vehicle Liability Insurance by increasing third-party benefits without a corresponding increase in premium rates. This includes an increase in death indemnity coverage (including funeral and burial expenses), which has nearly tripled from PhP 70,000 to PhP 200,000. The coverage of no-fault indemnity has doubled from PhP 15,000 to PhP 30,000. In case of death or sustenance of bodily injuries on the part of the insured, the insurer is liable to pay a sum of PhP 10,000. This is expected to reduce the risk of financial loss or instability for Filipinos, where road accidents are a major risk factor for preventable fatalities, which surged by 3.4% in 2022.

The increasing preference for eco-friendly modes of transportation is expected to accelerate the ownership of EVs in the Philippines. Due to a reduction in tariff rates, the sale of electric vehicles surged by nearly 500% in the Philippines between 2022 and 2023. As per the Electric Vehicle Association of the Philippines (EVAP), overall EV sales by 2030 are expected to reach nearly 6.6 million units in the country. This is expected to raise the demand for motor insurance over the forecast period.

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Philippines Motor Insurance Industry Segmentation

Philippines Motor Insurance Market Share

Based on type of distribution channel, the market is segmented into direct response, insurance agents, and banks, among others. Direct response is projected to dominate the market, representing 7% of the overall market share. Over the forecast period of 2026-2035, insurance agents are expected to grow at a CAGR of 4.0% due to the increased telemarketing efforts by motor insurance companies.

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Leading Companies in the Philippines Motor Insurance Market

At the Insurance Asia Awards 2023, Malayan Insurance Co. Inc., was awarded the title of “Domestic General Insurer of the Year” in the Philippines. It is one of the leading non-life insurers in the country.

• Malayan Insurance Co. Inc.

• Prudential Guarantee and Assurance, Inc.

• AXA

• BPI/MS Insurance Corporation

• FPG Insurance Co., Inc.

• PARAMOUNT LIFE AND GENERAL INSURANCE CORPORATION

• Standard Insurance Co. Inc.

• Cocogen Insurance, Inc

• Others

Market Challenges, Restraints, and Opportunities

The Philippines motor insurance market faces challenges linked to low penetration and widespread non-compliance. While compulsory third-party liability coverage is legally required, a significant share of vehicles operate without adequate protection, and comprehensive uptake remains limited. Fraudulent claims, fake insurance certificates, and inconsistent enforcement strain insurers, while heavy traffic congestion and high accident frequency in urban centers like Metro Manila elevate claims costs and underwriting risk.

Several restraints temper market development. Price sensitivity among consumers, combined with limited awareness of comprehensive coverage benefits, keeps demand concentrated in mandatory minimum policies. Distribution remains dependent on traditional agents and intermediaries, raising costs and slowing reach into provincial areas. Exposure to natural catastrophes such as typhoons and flooding increases loss volatility, while regulatory capital requirements set by the Insurance Commission pressure smaller insurers to consolidate or strengthen reserves.

Opportunities arise from rising vehicle ownership, expanding middle-class incomes, and growing motorcycle usage across the archipelago. Digital distribution, telematics-based pricing, and embedded insurance through dealerships and e-commerce platforms offer avenues to widen access and improve efficiency. Increasing financial literacy, government efforts to enforce mandatory coverage, and innovation in usage-based and bundled products support long-term growth potential across both urban and underserved provincial markets.