Tuesday, September 19, 2017

Five Philippine non-life insurers to exit industry

Because of their inability to comply with the increase in capital requirements now necessary, some non-life insurers in the Philippines have decided to voluntarily exit the insurance business by year-end.

According to the Philippine Insurers and Reinsurers Association (PIRA), there are five non-life insurance players that have signified their intent to exit the industry and another eight that are preparing to do mergers.

These decisions are largely because of the insurers’ inability to comply with the mandatory increase in their net worth going forward.

Under the Amended Insurance Code of the Philippines, existing insurers must have a paid-up capital of at least P550 million at December 2016, P900 million by December 2019 and P1.3 billion by December 2022.

Antonio Roderick Cabusao, a member of PIRA’s Public Relations and Education Committee, said that the five insurers are profitable, but they believe they will not have enough new capital in time to comply with the future requirements.

 

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