Tuesday, December 12, 2017

Philippine insurers told to beef up reserves

Insurers in the Philippines have been urged to beef up their reserves ahead of the new regulations that will take effect from January 1, 2018.

Philippine Insurers and Reinsurers Association (PIRA) chairman Augusto Hidalgo said that while the adequacy of member-companies’ reserves is nearing the 75th percentile of sufficiency based on a study funded by PIRA, there remains an P8 billion (US$155 million) gap in reserves or more than 60% of industry premiums and claims.

PIRA data showed that non-life insurance companies’ gross premiums totaled P81.02 billion as of end-2016, up 7.66% from a year ago.

During that period, non-life insurers incurred losses amounting to P16.886 billion, up 27.8% from a year earlier.

Loss ratio last year was at 37.37%, up from 2015’s 36.95%, according to data released by PIRA.

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