The Insurance Information Institute (III) has launched a new educational initiative, Future of American Insurance and Reinsurance (FAIR) to help the public understand the insurance industry's future role. In a statement published on 18 May, III said that the FAIR campaign aims to “ensure fairness for all customers and safeguard the industry’s long-standing role as a pillar of economic growth and stability”. III has said that the insurance industry will play a critical role in the recovery from the pandemic ahead. III chief executive officer Sean Kevelighan said, "FAIR was created to safeguard the ability of the insurance industry to support its customers at a time when policymakers, the business community, and the general public are searching for solutions to our ongoing economic turmoil. While we recognise the need for financial relief is severe, any attempts to make insurers retroactively responsible for a global pandemic puts the solvency of many insurers at risk. "While the insurance industry has been doing its part to step up and support their communities in this time of crisis, pandemics are fundamentally uninsurable events. “The federal government remains the only entity with the financial resources to help businesses recover from a systemic event of this magnitude. With the support of the public sector and the innovation of groups like insurers in the private sector, we can come together to work toward recovering from this catastrophe and build a more resilient future," said Mr Kevelighan. By Anoop Khanna Asian Insurance Review Original link to post: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/61780/Type/eDaily/Pandemics-are-uninsurable-Insurance-Information-Institute

The Philippines will invite reinsurers to make a bid again for the planned PHP2bn ($40m) national indemnity insurance programme to insure and protect public assets in disaster-prone areas, this time with less stringent documentary requirements. In a resolution, the interagency Government Procurement Policy Board (GPPB) said that it had amended tender documents for procurement of services from international brokers and reinsurers for the programme to be undertaken by the state-run pension fund Government Service Insurance System (GSIS), reported the Philippine Daily Inquirer. In particular, the GSIS will now only require from bidders a statement of sovereign or government clients within the past 10 years, instead of a statement of all their ongoing and completed government and private contracts, including contracts awarded but not yet started, if any, whether similar or not similar in nature and complexity to the contract to be bid on, within the relevant period. Bidders will also be required to furnish audited financial statements for calendar years 2018, 2019, 2018-2019, or 2019-2020 in accordance with international financial reporting standards, instead of the earlier requirement of having bidders’ audited financial statement received or stamped by the Bureau of Internal Revenue. The GPPB has also made other requirements easier for bidders to meet. In particular, the reinsurance contract will insure against fire, lightning and natural catastrophes—including earthquakes, floods, storm surges, typhoons, and volcanic eruptions—bridges and roads of the Department of Public Works and Highways in 25 provinces, as well as schools of the Department of Education in  metro Manila and 32 provinces. Insurance plan for government assets The insurance programme is aimed at obtaining reinsurance support from the international market through the services of a reinsurance broker for coverage of the public assets. The indemnity insurance policy shall be backed by catastrophe modelling and risk analysis for the government’s strategically important assets. The reinsurance broker shall also help in accessing the reinsurance market, secure the best reinsurance arrangement and rate, and ensure prompt claim handling and settlement and loss recoveries from the reinsurer for the national government’s strategically important assets and their subsequent reinsurance, according to the GSIS. In particular, the reinsurance contract will insure against fire, lightning and natural catastrophes—including earthquakes, floods, storm surges, typhoons, and volcanic eruptions—bridges and roads of the Department of Public Works and Highways in 25 provinces, as well as schools of the Department of Education in  metro Manila and 32 provinces. Last December, National Treasurer Rosalia V de Leon disclosed that a previous tender exercise had failed. The contract would have had covered the period 19 December last year until 19 December this year. Link to original post: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/61856/Type/eDaily/Philippines-Govt-cuts-red-tape-in-reviving-reinsurance-tender-exercise

While the Philippines has recorded over 15,000 coronavirus cases so far, life insurance players in the country have received few COVID-19 claims which could reflect low insurance penetration -reported local newspaper Philippine Daily Inquirer. For instance, AIA Philam Life has paid out only 10 claims related to COVID-19 so far according to chief marketing officer Leonardo Tan. He said these claims came from mostly senior citizens who are either from the middle class or have high net-worth. "Majority of the claims were for death benefits. Technically, this is not a true representation of the real scenario as we have received only a handful of claims and our portfolio of medical products is quite new,” said Mr Tan. Meanwhile, Philippine Life Insurance Association president and Sun Life Philippines chief executive and country head Benedict Sison told the Inquirer last week that there has been no surge in claims even though several life insurers are covering death caused by COVID-19 as well as offering polices that provide hospital income benefit when policyholders are afflicted by the coronavirus. He noted that a major reason behind this trend could be the fact that not all coronavirus patients have insurance coverage as the Philippines is known to be an underpenetrated market when it comes to individual insurance. “A lot of Filipinos are either not aware of the benefits of being insured and being invested or have not considered to be a priority,” he said. However, he has observed that more Filipinos are now becoming more aware of the benefits of having insurance which means that insurers can continue to offer services in order to help them become financially secure amidst the ongoing pandemic. By Ranamita Chakraborty Asian Insurance Review Original link to post: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/61890/Type/eDaily/Philippines-Few-COVID-19-claims-indicate-low-insurance-penetration

National Reinsurance Corporation of the Philippines (Nat Re) has shown a trend of sustained improvement in underwriting performance over recent years, supported in part by tighter cost discipline and a shift in the company's business mix toward profitable domestic life reinsurance products, notes AM Best. Overall operating results remain positive albeit modest, as strong investment income and realised gains have offset persistent underwriting losses over the past five years. Prospectively, AM Best expects Nat Re’s technical performance to return to technical profitability through continued portfolio remediation measures and improved pricing conditions amid pockets of loss-affected global programmes in which it participates. AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb" of Nat Re. AM Best says that the ratings reflect Nat Re’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). Balance sheet strength The revision of the outlooks to stable reflects Nat Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation that remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), says AM Best. The company’s moderate underwriting leverage and good liquidity level are in line with those of regional peers. Risk-adjusted capitalisation improved in 2019 as the company executed on strategic objectives to reduce investment portfolio exposure to market risk. Some volatility in its capital position has been observed in early 2020 as a result of mark-to-market movements, although this impact has been partially mitigated by the company’s investment portfolio de-risking measures. Prospectively, AM Best expects Nat Re’s capital adequacy to trend lower over the near to medium term, albeit remaining at the strongest level, as the rate of business growth is forecasted to exceed that of its internal capital generation. Business profile AM Best views Nat Re’s business profile as neutral given its strong relationships with local cedants and access to business through mandatory local cessions. As the only domestic reinsurer in the Philippines, Nat Re is well-placed to benefit from regulatory initiatives and upcoming developments in partnership with government agencies, which are expected to strengthen and further diversify its business profile. AM Best considers the company’s ERM framework as appropriate given the size and complexity of its operations. Nat Re continues to enhance its ERM framework and strengthen its risk management capabilities, systems and tools. Link to original post: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/61925/Type/eDaily/Philippines-Nat-Re-shows-sustained-improvement-in-underwriting-performance/

In an online meeting on Tuesday, the House of Representatives Defeat COVID-19 Ad-Hoc Committee (DCC) approved the substitute bills to the proposed "Philippine Economic Stimulus Act" (PESA), “Financial Institutions Strategic Transfer (FIST) Act”, and “COVID-19 Related Anti-Discrimination Act” which would further help the country ease the impact of the COVID-19 economically, financially and socially The PESA bill is the House immediate response to jumpstart the economy amid the pandemic. The proposed economic stimulus budget for 2020 is P568 billion while the amount of P650 billion plus P80 billion are for the succeeding year 2021 which would be the start of the Enhanced Build-Build-Build Program. Meanwhile, the FIST Bill aims to develop and maintain a strong financial sector In the country and address the financial sector’s problems on its non-performing assets amid the pandemic.Lastly the proposed “Anti-COVID-19 Related Discrimination Act” makes it unlawful for any person, natural or juridical, to engage in discrimination against confirmed, suspect, or probable cases of COVID-19, repatriated overseas Filipino workers, health workers, responders and service workers.

World Economic Forum’s Insurance & Asset Management Industry Action Group (IAG) and ASEAN Insurance Council presents: “Building Resiliency Amid Uncertainty: Enhancing Societal Resilience for the Long-Term” COVID-19 has had a major impact on all industrial and services sectors across the globe. As Covid-19 traced its way through the Region from early year, all ASEAN members have adopted different approaches to deal with the outbreak. ASEAN is now learning to cope with the pandemic and the economic crisis that it has caused, thoughts are turning to economic recovery and what that recovery might look like. As economies begin to implement exit strategies in the region, join us for our Webinar. In this webinar we will hear from the World Economic Forum’s Insurance & Asset Management Industry Action Group (IAG), a platform to facilitate peer-to-peer exchange and further dialogue on the industry’s critical role in the global response to the COVID-19 pandemic. As part of WEF ongoing efforts to articulate a long-term vision and mandate for the industry in the post-COVID world, WEF together with AIC would like to invite you to participate in the Virtual Meeting of the Industry Action Group on Tuesday, 25 August at 9.00am (JKT/BKK time)/ 10.00pm (NY time) to present: “Outlining the work of the Industry Action Group” The presentation will provide an update on the latest developments and provide insights on how to navigate the complexities of new economic trends which may surface, post COVID-19. Programme (JKT/BKK time): -      8.45 – 9.00          Participants are expected to join the Meeting -      9.00 – 9.05          Welcome Remarks by Mr. Nopadol Santipakorn, Chairman of ASEAN Insurance Council, -      9.05 – 9.10          Introduction by Mrs. Evelina F. Pietruschka, Secretary General of ASEAN Insurance Council, -      9.10 – 9.20          Briefing on the Outcomes of the work of the Industry Action Group (IAG) by Mr. Andre Belelieu, Head of Insurance & Asset Management Industry - World Economic Forum -      9.20 – 9.50          Discussion followed by Q & A -      9.50 – 10.00       Next step -      10.00                     End of Discussion Time:     Tuesday, 25 August 2020, 9.00-10.00am (JKT/BKK time)/ 10.00-11.00pm (NY time) Pre-registration required, please register before 17 Aug 2020 by accessing registration: https://forms.gle/KWYYenbL2AmJTnx96

Remember when Presidential Spokesperson Harry Roque said that the renewal of driver's licenses and motor vehicle registrations can begin once again under General Community Quarantine (GCQ)? Well, the Land Transportation Office (LTO) has made it official. Starting on May 13, 2020, the LTO will resume operations in areas placed under GCQ. This was done by the LTO as these areas have been classified as low-risk or medium-risk areas for the COVID-19 pandemic. Motorists that wish to renew their driver's license or motor vehicle registration will have to follow health and sanitary protocols which shall be enforced by the agency. These are: 1) The wearing of face masks shall be mandatory 2) Physical/social distancing shall be observed at all times 3) Transactions of persons below 21 years old, those who are 60 years old and above, and pregnant women shall only be allowed upon lifting of the Community Quarantine, consistent with Executive Order No. 112, series of 2020 Drivers that had their licenses expired during the ECQ period can renew theirs without having to pay a penalty fee. This comes after the LTO extended the validity of licenses that expired between March 17 to May 15. This makes the licenses technically valid until July 14, 2020. In addition, the LTO has released the guidelines and schedules in the renewal of motor vehicle registrations. Depending on the last number of a vehicles plate number/conduction sticker/month of initial registration indicated in the Original Receipt (OR), vehicle owners can renew their MV registration during the first, second, third, fourth, fifth, sixth, seventh, or eighth week upon the resumption of work at LTO offices. With several parts of the country set to shift towards a more relaxed version of the quarantine, more LTO offices could open once again in order to serve motorists. The LTO, however, reminds everyone to please follow the aforementioned protocols as well as observe physical distancing guidelines in order to avoid contracting the disease. By Marcus De Guzman Autoindustriya Original Article: https://www.autoindustriya.com/auto-industry-news/lto-to-resume-operations-in-gcq-areas-tomorrow-may-13.html

INSURANCE COMPANIES are asking the Insurance Commission (IC) to “ease up” on some regulatory requirements to temper the impact of the coronavirus pandemic on the industry. Philippine Insurers and Reinsurers Association (PIRA) Executive Director Michael F. Rellosa told BusinessWorld member companies have sought the relief to help them cope with the economic fallout. Investments have declined due to coronavirus-driven volatility in financial markets, while sales have slumped as Luzon and other parts of the country were placed under lockdown since mid-March. “We think we can survive this, but we have to ease up also on the regulatory regime. Since everybody felt the hit, can they go easy on us first so that we can continue doing what we are doing to help spur the economy,” Mr. Rellosa said in a Zoom call on Friday. He said the IC should suspend or lower the minimum net worth requirement of P900 million for this year and 2021 after the value of insurers’ assets were eroded by market volatility. “Investments namin bumagsak (our investments plunged), at the same time, may capital buildup program. So can we put a moratorium on the capital buildup program or can we peg it at specific level, and the RBC or the risk-based capitalization regime that we are also under, pwede bang (can they) i-relax naman nila ’yung levels,” Mr. Rellosa said. “Marami kaming hinihingi sa regulatory relief (we are asking for a lot in terms of regulatory relief).” Under Republic Act No. 10607 or the Insurance Code, insurers must have a net worth of at least P900 million by Dec. 31, 2019 and P1.3 billion by Dec. 31, 2022. New players must have at least P1 billion in paid-up capital. Most insurers complied with the minimum net worth requirement last year, but considering weaker market conditions and the bleak economic outlook, Mr. Rellosa warned the number of nonlife insurance companies could be halved by yearend. “If they are going to continue with the current levels of requirements, such as net worth requirements, RBC, kung lahat ’yan ipagpapatuloy medyo mahihirapan kami, siguro kalahati mawawala, out of 57, siguro mga 30 na lang maiiwan (if those will continue, it might be difficult for us to comply and around 30 out of our 57 nonlife insurance members could be gone),” he said. However, he said PIRA still has to consolidate the inputs of its 57 members before submitting a formal appeal to the IC. In mid-April, the insurance regulator conducted a survey to measure the impact of the coronavirus pandemic on insurance firms. Insurers were scheduled to submit the forms by May 8 and results were not yet available to the media as of writing. IC chief Dennis B. Funa has said insurance companies are “well-capitalized” to weather the risks of the coronavirus crisis, but their investments and sales will be hurt. Mr. Rellosa said sales of nonlife insurance companies have declined since most firms were not used to adopting work-from-home schemes, as well as depressed demand for their products. Despite lower revenues from the business disruptions, he noted companies continued to pay for their usual expenses such as rental costs, utilities and salaries. “Bagsak ’yung new business nila and ’yung renewals medyo nangalahati (New business is down and the renewals were halved). For different classes of insurance, iba iba ’yung effect but on a whole, medyo masama (the effect varies, but overall, it’s pretty bad). Sales went down,” Mr. Rellosa said. Meanwhile, Philippine Life Insurance Association, Inc. (PLIA) President Benedicto C. Sison has said life insurers expect their assets to suffer “some drag” due to local equity sell-offs, although equities only make up a small portion of their total assets. Sales of life insurance products also took a hit in the first month of the lockdown as the mobility of their financial advisors were restricted. Even with the online availability of some products, Mr. Sison said online sales still could not match the volume sold through licensed financial advisors as most clients still prefer face-to-face meetings before getting a policy. Mr. Sison noted an uptick in online sales of life insurance products, as more people wanted to get protection amid the coronavirus pandemic. Sales picked up after the IC allowed advisors to conduct “digitally enabled face-to-face selling” according to Mr. Sison. He added they expect sales to bounce back to their pre-pandemic numbers in the coming months as more Filipinos realize the benefit of life insurance. As of writing, the IC has not responded to queries on possible regulatory relief. IC has extended the deadline for submission of audited financial statements for its regulated entities, including life and nonlife insurance firms, to June 30 from the original May 31 deadline. The regulator also ordered insurance firms and health maintenance organizations (HMOs) to extend for at least 30 days current policies and agreements expiring during the lockdown period. Meanwhile, several life and nonlife insurance companies have adopted general relief measures for policyholders, such as grace periods for premium payments and the inclusion of COVID-19 under the critical illnesses covered. The insurance industry’s premiums jumped 2.76% to P224.97 billion as of end-September 2019 from P218.91 billion posted in the comparable nine months in 2018. The life insurance sector accounted for P172.05 billion of net premiums written in the period, while the nonlife sector contributed 19.56% or P44.02 billion. By Beatrice M. Laforga Reporter BusinessWorld Online Original Article: https://www.bworldonline.com/insurance-firms-seek-regulatory-relief/

The Philippine Insurers and Reinsurers Association (PIRA) in partnership with the Insurance Institute for Asia and the Pacific (IIAP) and Computer Professionals Inc. (CPI) conducted a webinar entitled “Work In The Time Of Covid – Running Your Insurance Business During A Lockdown and Beyond.” The webinar is the first of a series of online learning opportunities that PIRA and IIAP are organizing to help insurance companies adapt with the limitations of the Enhanced Community Quarantine (ECQ) due to the Covid-19 pandemic. In the webinar, Ms. Ma. Rosario “Ito” Gruet, co-founder and vice president of CPI, shared her insights on how insurance companies can still operate even on a work-from-home setup. Gruet highlighted the need for a framework that is composed of a company’s culture, its processes, and the technology that allows such processes to continue amidst the lockdown. “Work from home is the new normal,” she said. “This is a time of uncetainty for all of us.” Gruet went on to explain the process of “changing gears” in this lockdown by organizing, designing new ways of doing business, enabling people to work from home, securing the processes, managing the work, An online poll of the webinar’s more than 150 participants showed that 46 percent were ready to work online but had some challenges at the start. The rest were either not ready or barely ready, but a small percentage – 3 percent – declared themselves as fully ready. The webinar was co-hosted by PIRA Executive Director Michael Rellosa and IIAP Executive Director Francis Papa. Access the webinar here.

The Philippine Insurers and Reinsurers Association (PIRA) today announced additional measures by the non-life insurance sector to support non-life insurance clients during the Enhanced Community Quarantine (ECQ) brought by the Coronavirus Disease 2019 (COVID-19) pandemic. PIRA Executive Director Michael Rellosa noted that the health and safety of customers remain as the association's top priority. “Our PIRA member companies are committed to ensuring that the non-life insurance sector responds swiftly to evolving protection needs and continue to service customers safely during this challenging period,” he said. PIRA's additional measures to support customers include: • Some individual and corporate customers are now facing financial challenges brought about by the impact of COVID-19 and have difficulty making premium payments. PIRA members will work with impacted customers to review the financial difficulties and impact in each case, and to consider suitable installment payment plans or other options to reduce insurance cost. • Some insurers may offer customers flexibility in paying their insurance premiums using their credit cards, which includes installment payment plans. • Non-life insurers are servicing customers electronically (online) or through call centers in order to minimize face-to-face interactions. Customers are encouraged to leverage these in accordance with the latest guidelines from the authorities on the implementation of safe distancing measures. Customers should approach their respective insurers for details on these support measures. PIRA will continue to review these initiatives as the situation unfolds to ensure customers continue to be supported and serviced through this time.