Untapped potential in the Philippines as health insurance penetration is low

Core Insights - Medical expenses in the Philippines are rising significantly, with a majority of citizens lacking health insurance, presenting opportunities for medical insurers to introduce more flexible healthcare plans [1][2] - Only 33.9% of Filipinos currently hold private health insurance, leaving a large portion of the population vulnerable to high medical costs [1] - Healthcare costs in the Philippines are projected to increase by 18.3% in 2025, one of the highest rates in the Asia-Pacific region, highlighting the growing relevance of health insurance [2] Industry Opportunities - The National Health Insurance Program (NHIP) provides limited coverage, often leaving patients with substantial out-of-pocket expenses, creating a market for private health insurance to complement NHIP [2] - Oona Insurance has launched new products targeting different segments: Global Shield for internationally mobile Filipinos with coverage up to $2 million, and Purple Shield for families in the Philippines with coverage up to $86,000 [2] - Digital platforms are becoming essential for insurance providers to reach consumers effectively, especially in rural areas, with a preference for direct purchases from insurers noted among Filipinos [2] Consumer Preferences - A significant portion of private health insurance policyholders (25%) purchase directly from insurers, followed closely by financial advisors (23.8%), indicating a trend towards direct engagement [1] - Despite the growing trend of online purchasing, 73% of citizens prefer face-to-face interactions when buying insurance, presenting a challenge for digital-first insurers to build trust and ensure a seamless customer experience [2]