Mergers and consolidations are becoming a key item to consider for senior insurance executives. According to data from the Insurance Commission, the number of life insurance players has decreased to 31 in 2014 from 33 in 2011. In nonlife, the decline is more apparent, with 70 firms last year compared with 83 in 2011.
MANILA, Philippines – The government should hold the implementation of higher paid up capital for insurers by the end of this month and just await the passage of a new law, non-life insurers said. “Once (the) new code is signed by President Aquino, the existing Department of Finance Order 2007-06 outlining the capitalization level becomes moot and academic,” said Emmanuel Que, chairman of the Philippine Insurers and Reinsurers Association (PIRA). “We will appeal to the Insurance Commission (IC) to extend the deadline in consideration of this development,” he added. PIRA is the umbrella group for non-life insurers and reinsurers. Finance and insurance officials could not be immediately reached for comment. According to the 2006 order, insurance companies should hike their minimum paid up capital to P250 million from P175 million by this year. The capitalization should be formalized on paper by June 30. Any company that fails to meet the requirement will not be issued a license to operate by the Insurance Commission. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Industry sources said that 19 of the 84 licensed non-life companies have yet to comply with the P250-million minimum capital requirement. However, as the Finance department pursues its order, amendments to the 1974 Insurance Code of the Philippines have passed the bicameral conference committee and will simply need Aquino’s signature to take effect. Que said it would be prudent for the government to wait as there are conflicting provisions between the new code and the department order. Among Read More …