IPMI Inflation in the Philippines
The Philippines is tied with Thailand to have the lowest overall IPMI inflation rate, 8.8%, this year among the countries covered within this report. Compare this to the Consumer Price inflation, 3.87% as of March 2015, which actually went down in 2015, and it is clear to see that there is almost an opposite trend happening, especially in the past few years. As with Thailand, the reason for this is most likely that insurers have grouped the Philippines together with other similar countries and applied the same premium increase to this group.
What is upcoming for IPMI in the Philippines? Expect it to continue to have among the lowest rate of IPMI inflation, but monitor similar countries like Thailand and Indonesia to see if the Philippines holds pace with them. This could show a lot about insurers’ strategies in the low-cost Asia region.