Understanding Insurance Uptake in the Philippines: A Cluster-Based Analysis of Consumer Priorities

Abstract

Despite growing financial awareness, insurance uptake in the Philippines remains low compared to peer economies. This study explores the perceptions and behaviors of Filipino policyholders to identify actionable insights for increasing insurance adoption. The research aims to segment policyholders based on demographic, psychographic, and investment behavior variables, providing a nuanced understanding of consumer priorities and guiding more effective industry strategies. Using a quantitative approach, data were collected from insurance policyholders aged 18 and above in Metro Manila through stratified sampling to ensure demographic representation. A minimum sample of 180 respondents was determined for cluster analysis. The analysis revealed three distinct market segments: those who value service quality and accessibility, those focused on coverage, and those seeking basic, low-risk options. Each cluster exhibits unique demographic and behavioral traits. Findings offer valuable guidance for insurers to tailor marketing, product design, and customer engagement strategies, ultimately fostering trust and boosting insurance participation across different Filipino market segments.