Fewer nonlife firms in the Philippines expected this yearMarch 13 2017 by InsuranceAsia News Staff
The number of nonlife insurance players in the Philippines is expected to decline this year as the regulator imposes higher capital requirements for insurers.
From 63 nonlife companies as of end of 2016, the number may go down to 55, according to Insurance Commission commissioner Dennis Funa.
At least four insurers will close shop while eight of them will be merging, he added.
Of the four companies that will shut down, three are still winding up the process.
Funa said he is certain that Manila Surety and Fidelity Co will close.
According to the new regulation, insurers need to have a paid-up capital of P550 million (US$11 million) by end of 2016.
Compliance-wise, at least 26 life and 47 nonlife insurance players have already satisfied the new requirement based on latest data from the Insurance Commission.
But such data will still be subject for validation based on the 2016 annual statements of the companies due on April 30, 2017.
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