Saturday, November 18, 2017

Philippines social security seeks private insurers

The state-run social security insurance in the Philippines is planning to tap private companies to insure 35 million of its members after failing to convince the Government Service Insurance System to do so.

According to Social Security System (SSS) president and chief executive Emmanuel Dooc, GSIS declined to step in, saying it was not part of its mandate to cover private assets and non-government workers.

GSIS also reportedly expressed apprehension over a move where a social security firm would take on the risk of another social security entity.

With GSIS out of the picture, the SSS will now take the second option, which is to ask private insurers.

Dooc, nonetheless, admitted that the large payouts required by the scheme may dampen private players’ interest.

The SSS currently spends P100 billion (US$1.95 billion) yearly for pension claims.

In contrast, the country’s largest insurance firm last year posted only P32 billion in gross earnings.

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