By Michael F. Rellosa
THE nonlife insurance industry is soon set to vote on whether the three tariff-rated lines of property (fire), surety (bonds) and motor are to remain tariff-controlled or to allow free market-dictated premiums reign instead. This vote though is not final as whatever position is decided on would have to be submitted to, and approved by, the regulator, the Insurance Commission.
As discussed in an earlier column, the industry is almost evenly split between the two sides and are hard bent on choosing a position, which may have serious implications on all industry stakeholders. It is a hard choice as both camps have compelling arguments supporting them and each will not easily be dismissed. To help set the tone and to move the discussions along, the Philippine Insurers and Reinsurers Association (PIRA), the industry’s trade association and policy-making body, has invited champions from each side to present their papers, which in turn were distributed to the membership to allow them to see the pros and cons of each position and to help them make an informed choice. The same champions are likewise set to defend their positions in a virtual open forum slated for April 5, 2021. The voting is scheduled for the general membership meeting in late April, giving each company time to digest the arguments, and to confer with their own underwriters and management.