1. By: Love Leoann Duran 

3. What is Insurance?
 A promise of compensation for
specific potential future losses in
exchange for a periodic payment.
 Insurance is designed
to protect the financial well-being of
an individual, company or
other entity in the case of
unexpected loss.

4.  Agreeing to the terms of an insurance
policy creates a contract between
the insured and the insurer.
 In exchange for payments from the
insured (called premiums), the
insurer agrees to pay the policy holder a
sum of money upon the occurrence of a
specific event.

5.  In most cases, the policy
holder pays part of the loss (called
the deductible), and the insurer pays
the rest.
 Examples include car
insurance, health insurance, disability
insurance, life insurance,
and business insurance.

6. History of Insurance in the
Philippines
 Pre-Spanish Era - there was no
insurance; every loss was borne by the
person or the family who suffered the
misfortune.
 Spanish era – Insurance, in its present
concept, was introduced in the
Philippines when Lloyd’s of London
appointed Strachman, Murray & Co.,
Inc. as its representative here.

7.  1898 – Life insurance was introduced in
this country with the entry of Sun Life
Assurance of Canada in the local
insurance market.
 1906 – First domestic non-life insurance
company, the Yek Tong Lin Insurance
Company, was organized
 1910 – First domestic life insurance
company, the Insular Life Assurance
Co., Ltd., was organized

8.  1939 – Union Insurance Society of Canton
appointed Russel & Surgis as its agent in
Manila. The business transacted the Philippines
was then limited to non-life insurance.
 1936 – Social insurance was established with the
enactment of Commonwealth Act no. 186 which
created the Government Service Insurance
System (GSIS) which started operations in
1937. The Act covers gov’t employees.
 1949 – Government agency was formed to handle
insurance affairs, where the Insular Treasurer was
appointed commissioner ex-officio.

9.  1950 – Reinsurance was introduced by the
Reinsurance Company of the Orient when
it wrote treaties for both life and non life.
 1951 – First workmen’s compensation pool
was organized as the Royal Group
Incorporated.
 1954 – RA 1161 was enacted which
provided for the organization of the Social
Security System (SSS) covering
employees of the private sector.

10. At present, there are 130 insurance
companies registered with the Office of
the Insurance Commissioner. Of these,
2 are composite insurance companies
(engaged in both life and non-life
insurance), 23 are life insurance
companies, 101 are non-life insurance
companies and 4 are reinsurance
companies.

11. Top10 Life Insurance Companies
in the Philippines
The latest figures show the numbers of
2009. The ranking is according to total
premiums registered.
Rank Company Total Premiums
1 Philam Life & Gen. 10,892,909,604
2 Sunlife 9,565,859,352
3 Insular Life 6,183,786,001
4 Phil. Axa 4,440,526,432
5 BPI Philam Life 3,602,786,538
6 Pru Life 3,523,756,928
7 Generali Pilipinas 3,213,435,239
8 Manulife (Phils) 3,190,063,952
9 Grepalife Financial 2,274,757,169
10 United Cocolife 1,841,497,005

12. Basic Elements of Insurance
 Policy
A policy or insurance policy is a contract
that states all the specific conditions of
an insurance plan. It is important to read
and understand everything written in a
policy before buying the insurance so
that you know what benefits you are
getting and the limitations of those
benefits.

13.  Losses
A loss is the cost of damage inflicted upon a
piece of property or person. For instance, if
you get in a car crash where the vehicle is
totally destroyed, the loss would equal the full
value of the car. While "damage" describes
harm to a person or object, the term
"damages" can describe the amount of money
a person is legally obligated to pay another
party for damage she caused. For instance, if
you were the cause of an auto accident, you
may be obligated to pay the other driver
damages for losses he suffered.

14.  Perils and Risk
All insurance policies deal with compensating the
policyholder against perils. Perils are unpredictable
events that can cause damages or losses. Every
peril is associated with a certain amount of risk,
which is the likelihood that the peril will occur. Geico
defines risk as "the chance of suffering a loss." For
instance, in auto insurance, a common peril is
getting into a collision with another vehicle. When an
insurance company creates an auto insurance policy,
they assess the risk of the drivers. Drivers with clean
driving records will typically be considered less risky
and therefore might pay less for insurance.

15.  Premium
The premium is the cost of an insurance
policy. Premiums are typically paid on a
normal recurring schedule, such as on a
monthly, quarterly, biannual or annual
basis.

16.  Deductibles
Deductibles are costs that a person must pay
toward losses and damages before an
insurance company will pay. For instance, if
your auto insurance has a $1,000 deductible
on collisions and you get in a fender-bender
that causes $1,250 worth of damage to your
car, you must pay the first $1,000 to fix the car
and the insurance company will pay the
remaining $250. Deductibles protect insurance
companies from having to pay for small
losses. Choosing higher deductibles usually
reduces premiums for the policyholder.

17. References
 http://www.investorwords.com/2510/insura
nce.html#ixzz24I06Hcki
 http://www.batasnatin.com/law-
library/mercantile-law/insurance/1573-
history-of-insurance-in-the-philippines.html
 http://www.randelltiongson.com/top-10-life-
insurance-companies-in-the-philippines/
 http://www.ehow.com/list_7365840_basic-
elements-insurance.html#ixzz24IDBoFVV