More insurance companies are now geared toward complying with the PHP1.3bn ($23.6m) net-worth requirement under the Insurance Code as 31 December 2022 fast approaches, says Insurance Commissioner Dennis Funa.
Based on quarterly Financial Reporting Framework (FRF) reports of licensed non-life insurance companies as of 30 September 2021, 23 out of 52 insurance companies are already compliant with the PHP1.3bn requirement. Of the remaining 29 non-life insurers, 17 companies have a net worth exceeding PHP1bn; three have a net worth exceeding PHP950m. Among life insurers, 19 out of thirty-one 31 already comply with the minimum capital requirement pf PHP1.3bn. Out of the remaining 12 life insurers, seven companies have a net worth exceeding PHP1bn, and two companies have a net worth exceeding PHP950m.
Under the Insurance Code, insurance companies are required to add PHP400m to the prevailing minimum required capital of PHP900m by 31 December 2022.
However, last month, local media reports said that the insurance industry has renewed its pleas to the Insurance Commission (IC) to postpone the mandated increase in their minimum capital of PHP1.3bn set for this yearend. Both the Philippine Insurers and Reinsurers Association (PIRA) and the Philippine Life Insurers' Association are urging the regulator to delay the increase in the minimum capital.