By Herminia S. Jacinto
As the year 2024 is ending, and this will be my last column for the year, I believe it is just the right time to talk about the year that was for the insurance industry. What comes to mind very easily is the series of typhoons that occurred in the second half of the year, six of them occurring within two months. In previous columns, this writer has mentioned the importance of insurance covers on our properties, especially for typhoons and floods. When the property or vehicle is mortgaged to a bank to support a loan, the bank or lending institution requires that these covers be made for the collaterals. For the non-mortgaged properties, brokers and insurance sales agents should constantly remind their clients to secure such covers since the forecast is that we will have more of these events due to the climate change phenomenon. The insurance companies have trained personnel who can advise and prepare the correct and applicable insurance coverages for various types of properties. They can immediately respond to the needs of their clients during and after the events insured have happened.
What about the companies? This article is about the non-life insurance companies in the Philippines. Are they capable of paying the claims that may occur after the occurrence of these dreaded events? Are they liquid so they can pay claims as soon as determined to be compensable? These companies are carefully examined by the Insurance Commission in addition to the annual audit done by its external auditors. The Insurance Commission prepares financial statements based on its own assessment. The assets and liabilities are revalued at a net realizable value to ensure that the companies can pay their obligations without having to dispose of certain assets and delay payment of claims. The examination is done annually, and the audited balance sheet is published in a newspaper of general circulation so the public may be informed of the financial condition of their insurers.
Source: manilatimes.net
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