INSURANCE claims related to Covid-19 totaled P16.71 billion between 2020 and 2021, with life insurance coverage accounting for more than half of the benefits, or roughly P9.05 billion, the Department of Finance (DoF) said. It said in a statement on Saturday that this was based on the Insurance Commission's (IC) report to Finance Secretary Carlos Dominguez 3rd, which also pointed out that 23 percent of Covid-19-related claims were paid between the beginning of the pandemic in March 2020 and the end of 2020, with the bulk of the claims — 77 percent or P12.82 billion — being claimed last year. IC Commissioner Dennis Funa said in the report that P9.05 billion in claims for life insurance plans translates to nearly 9,500 death payouts. For his part, the DoF said Dominguez noted that compared to data from the Department of Health of roughly 51,000 deaths related to Covid-19 as of the end of last year, less than a fifth, or 18.6 percent, were covered by insurance based on IC data. The low insurance coverage rate for pandemic-related deaths, he added, emphasizes the need of securing financial protection in advance of calamities and other unexpected incidents. Meanwhile, Funa explained that the rest of the pandemic-related insurance claims in 2020 and 2021 came from health maintenance organizations (HMOs), which accounted for 39 percent of the payouts or P6.44 billion, mutual benefit associations (MBAs), which accounted for 5 percent of the payouts or P833 million, and non-life policies, which accounted for 2 percent or P382 million. "Notably, the out-patient benefit, meaning people who were not confined in the hospital, have the highest number of claims paid with 413,000 for the whole of 2021. Followed by claims under other benefits at 54,000," he was quoted as saying in the report. Death benefits accounted for P6.8 billion, or 53 percent, of the total payout last year, Funa added, followed by in-patient benefits, or those confined in hospitals, at 27 percent, or P3.5 billion. Out-patient benefits amounted for 15 percent of claims in 2021, or P1.92 billion. "It is noteworthy that within 2021, all four industries have already exceeded at 35 percent of their claims payment for the entire 2020," the IC head continued. Source: manilatimes.net

By Herminia S. Jacinto THIS article is inspired by the celebration of Women's Month this year and a column in this paper last week, titled "Why people are buying insurance during the pandemic." Allow me, dear reader, to pay tribute to the women who make insurance available to the clients (sellers of insurance products) and their women clients, the buyers. The pandemic is one time when people took a good look at their existing resources, which will support them just in case the inevitable happens. In the traditional Filipino family, the mother is usually responsible for the running of the household and providing for the day-to-day needs of the family. She decides what insurance protection her family will need. I recall one insurance agent told me that she spent days explaining to a businessman the value of getting adequate insurance protection on his life, but she could not get him to sign up. She almost gave up. But one fine day, the wife joined them in the meeting, and after listening to my friend about the benefits of insurance, the wife immediately said, "Go. We are signing up!" I am fully convinced that women make the best decisions in the family. Let us look at the Philippine insurance industry, which used to be dominated by men. Over time, women have become a formidable force in the insurance business occupying significant positions in their respective companies. The agency force in the life insurance business is a woman's world. Try attending an agency conference or other event of the agents and one can see that the top sellers are the women agents or financial advisors. Cheers to the superb convincing powers of these ladies! These women agents continue to reinvent themselves. They use state-of-the art gadgets in their selling activities. They are up to date with the latest developments in the country, investments, the stock market and fashion, of course. Most, if not all, of our qualifiers to the prestigious MDRT (Million Dollar Round Table) conferences in the United States are women. Allow me to pay tribute to some women leaders in the industry. First is none other than former Insurance commissioner Gregoria Cruz-Arnaldo, who was appointed by former president Ferdinand Marcos to head the Insurance Commission from 1970. It was during her tenure as Insurance commissioner that Presidential Decree 612, otherwise known as the insurance Code of the Philippines, was issued and implemented. Commissioner Cruz-Arnaldo organized and headed several organizations in Asean and Latin American and African countries. She founded the Association of Insurers and Reinsurers in Developing Countries, composed of companies from various countries, including the United States, Africa, Latin America, Europe and Asia, of course. The secretariat is based in the Philippines. Two other ladies, Adelita Vergel de Dios and Evangeline Escobillo, became Insurance commissioners at different periods after Mrs. Cruz-Arnaldo retired in 1985. In the private sector, the life insurance industry credits Ms. Esther Tan, former president of the Sun Life of Canada (Philippines) with building a huge number of life insurance agents, mostly ladies. Their agency force continues to be one of the best in the country. Insular Life Assurance Co. — the only mutual life company in the country — is now headed by Ms. Nina Aguas, chief executive officer (CEO) and executive chairman, its first lady CEO. There are many women executives in the life insurance companies, which shows that the women are the "nurturers" not only at home but also in their companies. The non-life insurance companies have been managed and led by ladies at one time or another. The chairman of the largest non-life insurance company, the Malayan Insurance Co., is Ms. Helen Dee. She chairs other companies in the Yuchengco Group but it was Malayan which first benefited from her leadership and expertise. She led the country in seeking support from global reinsurers for the reforms being instituted by the industry after suffering from heavy losses in the 1980s. Without reinsurance support, the industry cannot cover large risks and catastrophic events. Her sister, Yvonne Yuchengco, succeeded her as president but is now the vice chairman of the company. There are more empowered women in insurance but due to space constraints, I will write about them another time. Source: manilatimes.net

The Philippine Insurers and Reinsurers Association (PIRA), in partnership with IPV Network and the Insurance Institute for Asia and the Pacific (IIAP), will be conducting a two-day free webinar on Cyber Security and the Insurance Industry on February 4 and 5, 2021, via Zoom meeting application. Entitled "Closing The Gap Cybersecurity and the Insurance Industry" this very important webinar will have inputs from foreign experts on very timely topics such as evaluating cyber risks, cyber security governance and compliance, cyber security incident response and recovery, and targeted threat intelligence. Mr. Ramon Dimacali, a former Chairman of PIRA and former President of IBM Philippines, IIAP, and FPG Insurance, will be the Keynote Speaker in the event. Mr. Michael Rellosa, PIRA Executive Director, and Mr. Francis Papa, IIAP Executive Director, and Ms. Ma. Divina T. Tablante, IIAP Education Director, will serve as Moderators. There will be four speakers for February 4. Mr. Itay Yanovski of CyberInt will present the Changing Cyber Threat Landscape. Mr. Ivan Jude Busgano of IPV Network will talk about Cybersecurity Governance and Compliance. Mr. Nir Greenberg of Illusive Networks will focus on Evaluating Risks and Implementing Controls. And, finally, Mr. Jonathan Nativ of Silverfort will speak about Keeping a Close Eye on Your Crown Jewels. For February 5, Mr. Alex Peleg of Cilynx/Cynergy, will present something about Cybersecurity Incident Response and Recovery, while Mr. Itay Yanovski will again speak, this time about Targeted Threat Intelligence. PIRA is inviting all Presidents and CEOs of insurance companies, including the Chief Technology Officers, Chief Finance Officers, Data Privacy Officers and Chief Compliance officers to attend this free webinar. PIRA Executive Director Mr. Michael Rellosa said that as all insurance companies accelerate their adoption of digital technologies to adapt to the challenges posed by the Covid-19 pandemic, their exposure to cyber threats increases dramatically. "This webinar aims to enlighten the leaders and decision-makers of all insurance companies on the realities of cyber security and to arm them with necessary knowledge and tools to protect their companies from cyber threats," Mr. Rellosa said. There is still no available data related to the extent of cyber crimes involving insurance companies in the Philippines. However, a recent Bangko Sentral ng Pilipinas (BSP) survey showed that banks have experienced cyber security attacks during the first nine months of the pandemic. These attacks ranged from disruption of the banks' system, stealing money and Internet Protocol addresses, hacking, malware, fraud, phishing and insider attacks. Three fourths of the surveyed banks said financial losses are the most worrisome impact of cybercrime events, followed by breaches on customer data and reputational risk. Those interested to attend the free webinar may register through the PIRA Secretariat before February 1, 2021.

AM Best believes that Putin's invasion of Ukraine is likely to impact the global insurance industry substantially in the near to midterm, particularly given the significant fallout in the capital markets and potential for widespread cyber attacks. The AM Best commentary, ‘Significant Implications of Ukraine Invasion on Global Insurance Industry’ said that the invasion has had an immediate negative impact on the stock markets worldwide, continued volatility remains likely, challenging efforts by the global central banks and the US Federal Reserve to contain inflation. It said the sanctions against Russia may also have severe knock-on effects not just on oil and commodity prices, but also tourism, as well as the economies of some of the world’s less resilient countries. AM Best financial analyst Anna Sheremeteva said, “Further sanctions may impact the ability of international insurers and reinsurers to underwrite Russian risks or make it more difficult for them to service claims on existing policies. She said, “Most affected would be those writing large energy and infrastructure risks, such as London Market insurers, and international reinsurers.” AM Best financial analyst Todor Kitin said, “Sanctions also will affect the balance sheets of Russian insurers and their relationships with international partners.” “The valuation of investments would be affected by a prolonged equity market downturn, any increase in the Russian Central Bank’s policy rate, or a widening of credit spreads. On the other side of the balance sheet, higher-than-anticipated inflation would impact claims costs, with potential implications for the adequacy of reserves.” Additionally, the impact of an escalating global conflict may increase the risk of a systemic cyber attack and cause substantial economic and insured losses. Heightened risk perception could lead to higher prices in an already hardening cyber market. Source: asiainsurancereview.com

LEADING medical and travel insurance provider Pacific Cross introduces FlexiShield, a second layer plan, designed to meet clients' needs in case their health maintenance organization (HMO) or health insurance plan reaches its maximum benefit limit. "An illness in the family has an impact both on an individual's health and their finances. Some medical conditions, especially those that require confinement, can become quite costly to treat," shares Victor Tanjuakio, president and chief executive officer of Pacific Cross. "We hope to help ease some of the worries that come with situations like these with FlexiShield." FlexiShield is a top-up coverage that fully complements existing HMO plans. As such, its premium is more affordable, compared to standalone medical plans. It extends the inpatient coverage upon exhaustion of the existing and active first layer HMO plan's maximum benefit limit. Members of corporate accounts, individuals, and families that are already covered by an HMO plan can avail of FlexiShield. Benefits include up to P2 million coverage, daily hospital income for non-hospital expenses, flexible availment options (no cash-out or reimbursement), and coverage for Covid-19. Inpatient charges, such as required diagnostic laboratory tests; prescribed medicines; anesthesia and surgical appliances; and intravenous chemotherapy, radiotherapy, and dialysis are also part of the plan's benefits as covered by the first layer HMO plan. Hospital expenses incurred after the first layer HMO plan's maximum benefit limit has been exhausted will be covered. "We hope that with the benefits that FlexiShield offers, we are able to give clients the peace of mind they need [in order that] they can focus on getting better," concludes Tanjuakio. For more information on FlexiShield, visit www.pacificcross.com.ph. Source: manilatimes.net

AM Best is maintaining a stable market segment outlook for the Philippine non-life insurance segment, citing signs of recovery in 2021 regarding premium growth and improved investment conditions. In its new Best’s Market Segment Report, “Market Segment Outlook: Philippines Non-Life Insurance”, AM Best also notes the strong growth experienced in microinsurance, improving the affordability of insurance products and insurance penetration, as underpinning the stable outlook. Gross and net premiums written by Philippine non-life insurers for the nine-month period to 30 September 2021 increased by 11.9% and 7.6%, respectively to PHP64.3bn ($1.2bn) and PHP38.1bn, compared with the same period in the previous year. In addition, the government’s “Build, Build, Build” programme, which consists of more than 20,000 infrastructure projects nationwide, has resumed and is expected to drive the Philippines’ economic recovery. It is also likely to act as a catalyst to the long-term growth of the property, construction and engineering insurance segments. COVID-19 There is still some uncertainty surrounding the pandemic, which will remain a challenge for Philippine non-life insurers. Nevertheless, non-life insurers have made progress in adapting to the current environment by bolstering their infrastructure and enhancing digital capabilities to be able to operate in a remote manner. Investments Additionally, according to the report, as part of pandemic-fuelled fiscal stimulus measures in the Philippines, the country maintains a historically low interest rate, which constrain insurers’ investment results. However, interest rates are expected to rise in the coming year, and unrealised losses from the rising bond yields could impact insurers’ economic capital, depending on the companies’ asset-liability matching positions. AM Best notes that investment assets are highly concentrated in local currency fixed income and term deposits, and rate increases over a longer period could increase investment incomes generated from interest payments, with a positive effect on the profitability of the Philippine non-life insurers. Nat CAT The Philippines are one of the most exposed countries to natural catastrophes, and the non-life segment faces another year of high exposure to catastrophe events. In April 2021, the Insurance Commission, under the Department of Finance in the Philippines, announced the creation of the Philippine Catastrophe Insurance Facility, the first private-sector disaster risk financing initiative of scale in the country, allowing all insurers to pool disaster risks within the Philippines. AM Best is of the view that the facility should support domestic insurers to diversify catastrophe risks on top of their existing ceding to international reinsurers. However, higher risk retention in the country poses the danger of greater losses in the event of a major catastrophe. Hence, as the pool grows, proper risk management will be crucial to ensure that the facility functions as intended. Source: asiainsurancereview.com

US-based data-security specialist Cyber Reliant has partnered with Lloyd's underwriter Canopius to produce the world's first quantum-secure data protection warranty. The warranty protects commercial and institutional purchasers of Cyber Reliant data protection products with coverage of up to $5m. The Cyber Reliant platform is the only product rigorously tested by US Federal Laboratories as quantum resistant for protecting data at rest, in use, or in transit. It does this by transforming the data’s properties into quantum-secure fragments. Regardless of if a network is breached, surveilled, or data is exfiltrated by malware or ransomware, the data will remain secure and available to the authorized user. The data protection company offers both federal and commercial data privacy solutions and addresses all major regulatory and compliance requirements. “Our platform provides methods for clients to implement enterprise-wide data protection on any data type, to include network protocol/packet data and IoT,” said Cyber Reliant CEO Ricardo Bueno. “Together, this warranty and the Cyber Reliant platform will enable customers to significantly reduce risk from both a governance and regulatory compliance perspective. This market-making solution finally makes it possible for the C-suite to connect policy and financial risk. Our methods include a zero-trust data protection architecture for privacy management that gives control back to the customer by eliminating the need for other privacy solutions.” Canopius global head of cyber and technology Matt Northedge said “We’re always looking to support product innovation in the cyber market, and this warranty is a standout example of a smart solution to an ongoing problem for businesses. Bringing together Cyber Reliant’s quantum-resistant cybersecurity platform with our warranty protection blends our specialist skill sets and effectively offers businesses a ‘double lock’ of protection against data loss.” Quantum secure The platform allows data to be protected against quantum computing, which uses quantum bits as opposed to the binary bits (0 or 1) utilized in traditional computing. While bits allow for two discrete values, qubits can store a point in a two-dimensional continuum, a surface of a sphere. Quantum computing can take advantage of those more powerful qubits and carry out operations not only for a determined value 0 or 1 but also for all possible superpositions at the same time. This means that quantum computing has a huge efficiency advantage over binary computing for selected tasks, and some tasks will only be feasible through quantum computing. This also means that quantum computing has the ability to break many of the classic cryptography methods used to secure data. “The risk extends to the core internet security protocols. Nearly all of today’s systems that demand security, privacy, or trust, would be affected,” said a post from the European Data Protection Supervisor website. “Organisations should consider for how long they need to guarantee absolute confidentiality of data and protection from retrospective decryption. Based on what we know today there is no immediate threat posed by a quantum computer in the foreseeable future. It may likely take decades to build a usable quantum computer that can execute known algorithms. But for data that needs to remain safe for very long, this uncertainty poses an issue that may require an early transition to post-quantum cryptography,” the post said. Source: asiainsurancereview.com

Speaker: Mr. Ian Porteous – Ian leads the ACCESS Health team in engaging with regionally based stakeholders including multilaterals and governments, academia and non-profit organizations as potential funders, partners and entities of interest for ACCESS Health. Dr. Monica Mittal – is the Innovation Lead at ACCESS Health International, Singapore office. She leads Fintech for Health projects across six markets- India, China, Bangladesh, Malaysia, Nepal, and Vietnam. She also leads the Accelerator Program for start-ups under Health Futures.

By Argie Aguja, January 12, 2021 The Land Transportation Office (LTO) revamped the restriction codes on driver’s licenses, featuring a more detailed alphanumeric system that identifies new vehicle types and specific requirements. Under this new system of detailed subcategories, the license describes what the owner can or cannot drive. From the previous iteration that shows only the restriction and conditions, the new format now includes important details like the Driver’s License (DL) Code, Vehicle Category, Driver’s License Classification and the type of clutch used. Updating the system The LTO has been revising the existing restriction codes on driver’s licenses for quite some time now. Back in August 2019, Memorandum Circular no. 2019-2174 signed by LTO chief Asec. Edgar Galvante, titled “Operation of Motor Vehicles under Restriction Codes 2, 3, 4 and 5,” stated that holders of driver’s license with restriction codes 2 and 3 are allowed to operate/drive motor vehicle with Manual Transmission or Automatic Transmission while holders of driver’s license with restriction codes 4 and 5 can only operate/drive motor vehicles with Automatic Transmission (AT). Restriction codes were also revised too, putting emphasis on new DL Codes and updated existing restrictions, most notably adding specific sub-levels based on kind of vehicle and Gross Vehicle Weight (GVW). New format at the back of licenses This year, the LTO announced another change in the format of new driver’s licenses. In a Facebook post dated Jan. 8, the LTO released several infographics and charts showing changes in the format. At the back of the license, on the upper left, new DL Codes will be listed as follows: A – Motorcycles A1 – Tricycles B – Weighing up to 5,000 kg GVW with 8 seats B1 – Weighing up to 5,000 kg GVW with 9 or more seats B2 – Goods less than or equal to 3,500 kg GVW C – Goods more than 3,500 kg GVW D – Buses more than 5,000 kg FVW with 9 or more seats BE – Trailers less than or equal to 3,500 kg GVW CE – Articulated vehicles with more than 3,500 kg combined GVW Immediately on the right of DL Codes are the updated Vehicle Categories that can range from: · L1 to L7 for motorcycles, tricycles (specifically three- and four-wheelers) · M1, M2 and N1 for vehicles up to 3,500 and 5,000 GVW for carrying goods or people · N2 and N3 for vehicles more than 3,500 kg GVW for carrying goods · M3 for buses above 5,000 GVW with more than 8 passenger seats · 01 for articulated vehicles less than 750 kg GVW · 02 for articulated vehicles up to 3,500 kg GVW · 03 and 04 for articulated vehicles more than 3,500 GVW These new vehicle categories give a more detailed description and the type of license needed to drive them. It’s far more complex than the old system, where, for example, motorcycles and tricycles were simply grouped under Restriction Code 1 regardless of the differences in weight, speed, and design. Meanwhile, this new format takes into account the weight, capacity and speeds of each type. This clears the confusion as to what kind of DL Code and type of license are required for drivers for newer vehicle models Beside the Vehicle Categories are the Driver’s License classifications that can either be Non-Professional Driver’s License (NPL) or the Professional Driver’s License (PL). Further to the right is the type of clutch used: Automatic Transmission (AT) or Manual Transmission (MT). Condition Codes for differently-abled drivers There are times when applicants possess certain impairments that could affect driving capability. In these cases, drivers will be assigned a condition code if they fall within a certain category. Below are the following Condition Codes for differently-abled drivers: 1. Wear Corrective lenses 2. Drive only with special equipment for upper/lower limbs 3. Drive customized motor vehicle only 4. Daylight driving only 5. Hearing aid required For clarification on the new design and vehicle classifications, check out LTO’s Facebook post here: https://www.facebook.com/lto.cdmpao/posts