ADVISORY: DOE sets schedule of possible power interruptions in Luzon

Insurers in the Philippines will shift to a more transparent accounting system by 2025 - a change that will require operations, financial reports and actuarial calculations to be reassessed, according to the industry regulator, the Insurance Commission (IC).

MALAYAN INSURANCE Co., Inc., Liberty Insurance Corp. and Prudential Guarantee and Assurance, Inc. have rolled out plans for individuals with trips affected by the coronavirus disease 2019 (COVID-19) pandemic, the Insurance Commission (IC) said in a statement on Thursday. The IC said the policies offered by these companies include assistance on flight rebooking, airline ticket reimbursements, and hospital cash benefits, among others. “Those interested to avail of COVID-19 insurance coverage may well consider these products offered by the three companies mentioned,” IC Commissioner Dennis B. Funa was quoted as saying. “Our fellow Filipinos may examine these insurance products and avail such products that are most responsive to their needs and the particular COVID-19-related risks they seek protection from,” Mr. Funa added.

INSURERS and mutual benefit associations (MBAs) scored higher in the Asean Corporate Governance Scorecard (ACGS) for the year 2019 but the Insurance Commission said there is still room for improvement, especially in terms of disclosure and transparency. The insurance industry and MBAs collectively registered an average ACGS score of 45.9 in 2019, up by 3.36 points from 42.54 in the previous year. The 2019 assessment conducted by the Institute of Corporate Directors (ICD) covered a total of 119 entities regulated by the IC, of which 56 are non-life insurers, 32 are life insurers, and 31 are MBAs. The IC attributed the increase in the total average score to the Commission’s issuance of Circular Letter No. 2021-26 that mandated the creation and maintenance of company websites. However, Insurance Commissioner Dennis B. Funa noted that the ICD report for 2019 also revealed the area of Disclosure and Transparency or the disclosure of corporate governance-related documents is of “special concern.”

The insurance industry has been revolutionised through the introduction of insurtech. Reducing the time it takes for customers to be given a response, along with reducing operational costs are only a couple of the many advantages technology in the insurance sector has enabled. An important area that needs to benefit from the introduction of insurtech is regulatory checks as the right technology solution will automate much of the standard checks and business workflows that surround compliance, freeing up time for brokers and insurers to work on their products and ultimately spend more time on their customers.

THE insurance industry in the Philippines is one of the most varied and comprehensive in the Southeast Asian region, and includes not only conventional life and non-life insurance, but also composite companies, pre-need insurers, mutual benefit associations (MBAs), health maintenance organizations (HMOs), and micro- and macro-insurers. Except for the pre-need segment, which has been gradually shrinking as alternative insurance products are introduced, all of these businesses have enjoyed strong growth in the past decade. Regulatory developments The insurance industry is regulated by the Insurance Commission (IC), which was created by the 1974 Insurance Code of the Philippines. The IC's regulatory responsibilities have expanded over the years along with the growth of the industry that introduced new forms of insurance. In 2009, the Pre-need Code placed pre-need insurance under the IC's authority, while Republic Act (RA) 10607, known as the Amended Insurance Code and signed into law in August 2013, changed a number of key requirements for insurers and further expanded the IC's oversight. In 2015, the regulation and supervision of the country's HMOs was also placed under the IC, by an executive order issued by then-president Benigno Aquino 3rd.

Insurance companies paid out PHP3.89bn ($81m) in claims related to COVID-19 last year, with nearly a third of the amount or PHP1.22bn being death benefits. Health maintenance organisations (HMO), which are regulated by the Insurance Commission, shouldered almost half or PHP1.91bn of the total claims paid during the first full year of the pandemic, reported the Philippine Inquirer.

Insurance payouts for Covid-19-related claims reached P3.89 billion last year, the Insurance Commission (IC) announced on Tuesday. Health maintenance organizations (HMOs) accounted for the biggest share at P1.91 billion, or 49 percent of the total, the regulator said in a statement. Following were life insurers, P1.46 billion, or 38 percent; mutual benefit associations (MBAs), P354.90 million, or 9 percent; and nonlife insurers, P160.20 million, or 4 percent. Covid-19-related death benefit claims totaled P1.22 billion in 2020. Covid-19-related claims for in-patient benefits (P1.18 billion) and out-patient benefits (P933.7 million) were next. "(W)e hope that the aggregate amount of Covid-19-related claims paid in 2020 by life and nonlife insurers, MBAs and HMOs either within or outside contractual obligations amounting to P3.89 billion, which by itself is no small feat, will continue to inspire consumer confidence in said four respondent sectors and will educate our fellow Filipinos of the benefits of availing [of] the insurance and HMO products and the benefits of MBA membership," Insurance Commissioner Dennis Funa said in the statement.

INSURANCE PAYOUTS related to the coronavirus disease 2019 (COVID-19) have reached P3.89 billion as of end-2020, a survey conducted by the Insurance Commission (IC) showed. Out of the 111 regulated entities, 69 respondents reported to have received COVID-19-related claims — particularly from 22 life insurers, 15 nonlife insurers, 18 mutual benefit associations (MBAs), and 14 health maintenance organizations (HMOs). “The aggregate COVID-19-related claims paid by the HMO sector per the three surveys accounted for 49% of said amount, or approximately P1.91 billion,” Insurance Commissioner Dennis B. Funa said in a statement on Tuesday.

MANILA – An executive of the Insurance Commission (IC) has highlighted the importance for insurance companies to leverage on technology, among others, to boost their sales during the pandemic and drive the sector’s growth. In a webinar jointly hosted by the Department of Finance (DOF), IC, and SGV & Co. on Tuesday, IC Deputy Commissioner Ferdinand George Florendo said tapping technology would be “very advantageous” for insurance companies not only for data but for sales. “People are now risk-averse and would prefer, sometimes, to also deal using technology,” he said. This change has been cited by several insurance company executives in the past, noting the faster they adapt to this change, the better their processes and sales would improve amid the new normal. Florendo underscored the need for companies to hike market awareness for risk.