Aon has appointed Mr Karl Hamann as CEO of the Philippines, effective 1 April 2026 and subject to regulatory requirements. In his new role, Mr Hamann will focus on further advancing Aon’s integrated solutions strategy and helping clients navigate increasingly interconnected risks with greater clarity and confidence. He will work closely with regional solution line leaders to align priorities, deepen client engagement and support sustained growth. Mr Hamann brings more than three decades of experience across APAC and global markets, with deep expertise in insurance, risk advisory and operational leadership. He has held CEO roles across the Philippines, Papua New Guinea, Malaysia Singapore and South Asia, before joining Aon in 2022 as CEO of Indonesia. Mr Hamann takes over from Mr Darren Oliver , who will transition into a newly appointed regional role as Head of Market Development, APAC Health Solutions. Source: www.asiainsurancereview.com

Two major cyber-attacks on Asian companies feature in Tokio Marine HCC International's (TMHCCI) annual 'Top 10 cyber incidents report' for 2025. The latest report highlights large-scale ransomware, systemic cloud outages and the first documented AI-orchestrated cyberattack at scale, as operational disruption and supply-chain dependencies continue to amplify financial and business risk across industries. Compiled by TMHCCI’s Cyber Security team, the report highlights how ransomware, technology supply-chain compromise and cloud infrastructure concentration continue to drive systemic cyber risk for organisations worldwide. The incidents listed – not ranked – span retail, automotive, cloud infrastructure, telecommunications and luxury goods sectors and includes two major incidents from the Asian region – South Korea’s SK Telecom and Japan’s Asahi Group Holdings. The 10 most significant cyber incidents featured TMHCCI’s report include: Marks & Spencer ransomware incident : Operations were disrupted at one of the UK’s largest retailers causing an estimated £300m impact to operating profit and triggering broader sector-wide effects as other major UK retailers, such as Co-op and Harrods, also experienced cyber incidents. Jaguar Land Rover ransomware attack:  The breach on British automotive manufacturer has been marked as the most economically damaging cyber incident to hit the UK. The shutdown of vehicle production resulted in a £1.9bn financial loss. Amazon Web Services, Azure and Cloudflare outages:  A series of major outages caused widespread global disruption, highlighting the systemic risk of cloud concentration affecting online services and customer-facing platforms which triggered cascading service failures across SaaS organisations. Salesforce / Drift OAuth large-scale data breach:  The breach exploited compromised OAuth tokens to access hundreds of Salesforce customer environments, exposing the records, contact details and account information of millions of customers. Npm Ecosystem supply-chain attack:  The IT software provider compromised widely used JavaScript packages exposing developers’ and organisations’ environments to credential theft. Oracle Corporation Cloud Platform alleged supply-chain breach : The breach reportedly affected over 140,000 tenants with the threat actors claiming exfiltration of around 6 million records as a result of a data breach achieved via the login endpoint. APT group used Claude AI to carry out AI-orchestrated cyberattacks: Marking one of the first known AI-orchestrated cyberattacks at scale, a state-sponsored cyber-espionage company used Claude AI to lead a large-scale autonomous attack targeting around 30 global organisations with 80-90% of the campaign being automated. SK Telecom: The cybersecurity breach was detected in April exposed the data of nearly 27m users creating widespread risk of SIM-cloning, and identity theft. Attackers had maintained undetected access since June 2022. Kering Group:  After an unauthorised third party had temporarily accessed Kering’s internal systems, fashion brands including Gucci, Balenciaga and Alexander McQueen were affected by a cyberattack which exposed personal information of millions of customers globally. Asahi Group Holdings:  A detected cyberattack forced the company to suspend key operational systems in Japan, causing widespread disruption to order processes and shipments. The author of the report, TMHCCI Cyber Security Leader Isaac Guasch, added, “From financial losses to widespread cloud outages, it’s striking over the past 12 months to see the pace of change and how these threats have evolved. Tracking these incidents year-on-year helps the market stay ahead of emerging cyber threats and provide the best protection for the insured.” Source: www.asiainsurancereview.com

Southeast Asia stays underinsured, leaning on savings and state aid The Philippines is increasing its insurance buffer against climate-related shocks, with higher penetration, rising property premiums, and a broader mix of catastrophe risk solutions emerging as severe weather events affect Asia. Insurance penetration trends amid regional catastrophe activity According to Aon ’s report, cited by Manila Bulletin , insurance penetration in the Philippines reached 1.85% in the third quarter of 2025 (Q3 2025), up from 1.74% in the same period of 2024. The metric, calculated as total insurance premiums as a share of gross domestic product, shows a modest increase in formal risk transfer in the economy. Non-life business accounted for 1.1 percentage points of this penetration, indicating higher take-up of cover for property, motor, and catastrophe exposures. According to Aon, non-life premiums in the Philippines rose 13% year over year to more than US$1 billion in the third quarter of 2025, compared with US$906.5 million a year earlier. The shift in coverage occurred alongside a series of storms across Southeast Asia. Between June and August 2025, Tropical Storm Crising and Typhoons Betty, Isang, and Emong affected the Philippines, Vietnam, Thailand, Laos, and Myanmar. The events caused more than 150 deaths, damaged over 200,000 homes, and destroyed around 480,000 acres of crops, with estimated economic losses of up to US$3 billion. From late September through November, Typhoons Opong, Nando, Paolo, Tino, and Uwan again struck the Philippines, Vietnam, and Thailand, leading to more than 500 additional fatalities and losses exceeding US$5 billion. Globally, Aon estimated economic losses of US$260 billion in 2025, about 23% below the 21st-century average and the lowest annual figure since 2015. Insured losses reached US$127 billion, around 27% above the long-term average, suggesting that a larger share of aggregate losses was covered by insurance and contributing to a global protection gap that narrowed to about 51%. More than half of global economic losses were recorded in the US, followed by Asia-Pacific, then Europe, the Middle East, and Africa, and the rest of the Americas. Protection gap in Southeast Asia remains high Despite increased insurance penetration, Aon’s analysis indicates that Southeast Asia remains significantly underinsured relative to its natural catastrophe exposure. The region continues to rely heavily on self-funding and public resources for post-disaster recovery. Since 2000, only about 12% of economic losses from floods and tropical cyclones in Southeast Asia have been insured, leaving an estimated 88% protection gap. This reflects uninsured or underinsured exposures across households, commercial property, infrastructure, and public assets. The Philippines illustrates these conditions. The country is exposed to frequent typhoons, floods, landslides, and storm surges, and recent years have seen shorter intervals between major events. On Nov. 9, 2025, super-typhoon Fung-Wong made landfall in the Philippines, bringing flash floods, storm surges, landslides, and strong winds only days after Typhoon Tino. The Department of Agriculture estimated that Fung-Wong caused around PHP968 million (US$16.8 million) in damage to the agriculture sector. National meteorological records indicate that the number of super-typhoons affecting the country has more than doubled over the past two decades, while World Bank data puts average storm-related damage at about US$3.5 billion a year. Property insurance outlook within general insurance growth Data and analytics firm GlobalData expects recurring natural catastrophes to influence medium-term demand for property insurance in the Philippines and to shape risk appetite and strategy for insurers, reinsurers, and policymakers. Property insurance is projected to remain a major class within the Philippine general insurance market. GlobalData forecasts that property claims will account for 22.7% of total general insurance claims in 2026, reaching PHP6.4 billion (US$110.9 million). The firm notes that actual claims could exceed projections as loss experience from super-typhoon Fung-Wong and other 2025 events becomes fully known. On the premium side, GlobalData’s Global Insurance Database projects that property gross written premium will grow at a compound annual rate of 11.5% between 2026 and 2030, rising from PHP66.9 billion (US$1.2 billion) in 2026 to PHP103.3 billion (US$1.8 billion) by 2030. “The global climate crisis is contributing to the increased intensity and frequency of tropical storms and typhoons. Despite rising catastrophe related losses, the Philippine property insurance market is expected to expand steadily. It is expected to remain profitable, with the loss ratio projected to remain well below 50% during the 2026–30 period,” said Manogna Vangari, insurance analyst at GlobalData. At the broader market level, GlobalData projects that Philippine general insurance gross written premium will rise from PHP153.8 billion (US$2.7 billion) in 2025 to PHP229.7 billion (US$3.9 billion) by 2029, equivalent to a 10.6% compound annual growth rate. Property insurance is expected to represent nearly 40% of general insurance premiums in 2025. Role of infrastructure, mortgages, and microinsurance in distribution Infrastructure projects and housing finance are acting as channels for additional insurance penetration. In March 2025, a PHP149.5 million (US$2.6 million) flood-control project in Liloan, Cebu, was approved with a requirement for contractors to obtain all-risk insurance, incorporating risk-transfer conditions into climate-exposed public works. Mortgage-related covers are also contributing to property insurance use. “Private mortgage protection is accelerating in the island nation. In August 2025, Pag-IBIG Fund launched housing loan insurance claims for typhoon-damaged homes in Pangasinan, ensuring a five-day processing window and allowing claims without a formal calamity declaration. This operational model reduces recovery delays and illustrates how property insurance can cushion household balance sheets following severe weather events, strengthening consumer confidence in the industry,” Vangari said. Microinsurance is being used to provide catastrophe cover to lower-income and underserved groups. Domestic providers offer low-cost products covering perils such as fire, typhoon, flood, and earthquake, typically with benefits of up to PHP20,000 (US$346.68) for annual premiums starting at around PHP250 (US$4.33). These policies are aimed at segments that often face high exposure to severe weather and have limited financial buffers. Parametric and agricultural solutions in disaster risk management At the sovereign level, the Philippines has put in place catastrophe risk-transfer arrangements with World Bank support, including parametric and catastrophe insurance mechanisms intended to provide quicker post-disaster funding. Under parametric covers, payouts are triggered when agreed thresholds – such as wind speed or rainfall levels – are reached, rather than after traditional claims adjustment. Despite these measures, the World Risk Index estimates the country’s catastrophe protection gap at about 98%, compared with a global average of 58%, indicating extensive uninsured and underinsured exposure across sectors. In agriculture, the Philippine Crop Insurance Corporation is working with local governments to extend crop cover and accelerate claims processing. The institution is using satellite mapping tools to support faster assessment and settlement for farmers affected by weather-related losses. For insurers and reinsurers across Asia, developments in the Philippines provide a case study of how a highly exposed market is using a combination of traditional indemnity policies, microinsurance, mortgage-linked products, and parametric solutions to address climate-related risk and the long-standing catastrophe protection gap. Source: www.insurancebusinessmag.com

Nearly 3m Filipino farmers and fishers are expected to benefit from expanded government-backed insurance coverage following a significant budget increase, the Department of Agriculture (DA) said. Under the 2026 General Appropriations Act, the Philippine Crop Insurance Corp (PCIC) received a PHP6.5bn ($115.8m) allocation, representing a 45% increase from PHP4.5bn in 2025, reported Philippine News Agency. The expanded budget will allow PCIC to insure around 2.93m farmers and fishers, up nearly 25% from the 2.35m food producers covered last year. The DA said the additional funding will enable higher insurance coverage for rice and corn, as well as broader nationwide access to its free insurance programme. The maximum indemnity for total crop loss for rice and corn has been increased to PHP25,000 per hectare, up from PHP20,000 previously. PCIC’s multi-peril insurance covers losses caused by natural disasters, pests and diseases. Insurance coverage also extends to high-value crops, fisheries and aquaculture, livestock and non-crop agricultural assets. Registered coconut farmers under the National Coconut Farmers Registry System will also be included. About 714,000 coconut farmers are expected to be insured this year, supported by a PHP500m allocation from the Coconut Farmers and Industry Trust Fund, compared with 640,000 farmers covered in 2025. Eligibility for government-subsidised insurance requires farmers and fishers to be listed in the Registry System for Basic Sectors in Agriculture. For 2026, the total number of subsidised and non-subsidised insured farmers and fishers is projected to reach 3.68m, up 12% from 3.29m last year. Source: www.asiainsurancereview.com

The Philippine Health Insurance Corporation (PhilHealth), the state insurer of the Philippines, has reported paying more than PHP300bn ($5.07bn) in benefit claims across the country in 2025. According to reports from state-owned media, PhilHealth disbursed PHP300.45bn, with PHP177.7bn allocated to private health facilities and PHP122.75bn to government hospitals between January and December 2025. The figure represents an 81.72% increase compared with 2024, when total benefit payments amounted to PHP165.34bn. Of that amount, PHP74.02bn went to private facilities, while PHP91.32bn was directed to government hospitals. PhilHealth said that the substantial increase underscores its ongoing commitment to promptly settling benefit claims and strengthening financial risk protection for its members. Source: www.asiainsurancereview.com

By Michael F. Rellosa On January 27, 2026 , the world will again pause for an unusual ritual: the unveiling of the Doomsday Clock —a symbolic measure of how close humanity is to self-destruction. The Bulletin of the Atomic Scientists’ Science and Security Board , joined this year by Nobel Peace Prize laureate Maria Ressa , will announce the new setting and explain why the world is—or is not—moving closer to midnight. The question being asked is simple and unsettling: Will we be closer to midnight? But for those of us in the Philippine insurance and reinsurance industry, the deeper question is this: What does a world moving closer to catastrophe mean for protection, resilience, and national stability—especially for a country as exposed as ours? The Clock Is Not Just Global—It’s Local In January 2025 , the Clock was moved to 89 seconds to midnight , the closest it has ever been. The Bulletin cited escalating nuclear risk, climate breakdown, biological threats, and the accelerating use of artificial intelligence in conflict and disinformation. To many, this sounds remote—concerns that belong to superpowers and international institutions. But the Philippines does not enjoy the luxury of distance from global volatility. Because in a world racing toward systemic risk, our exposure multiplies . And unlike wealthier nations, we are more vulnerable to shocks that ripple through supply chains, markets, food systems, energy costs, and migration. When global instability increases, the Philippines absorbs the impact faster—and recovers slower. The Doomsday Clock may be set in Chicago, but the consequences are felt in Tacloban, Cagayan, Bicol, and Zamboanga . What the Insurance Industry Must Understand We are used to working with risk—but we must accept this reality: the nature of risk is changing. The Doomsday Clock is not only about warheads and treaties. It is about a world where interconnected threats are converging: climate instability, geopolitical tension, emerging technology, and weakened public trust. For the Philippine insurance and reinsurance sector, this means three things: Catastrophe is becoming more frequent and more complex Losses are increasingly systemic, not isolated Protection gaps are becoming national security vulnerabilities In other words: when a country is underinsured, it is not only economically fragile—it becomes politically and socially fragile as well. We must stop thinking of insurance merely as a financial service. In a world nearing midnight, insurance is a resilience infrastructure. The Protection Gap Is a National Risk In my New Year message, I wrote that insurance is not simply a business—it is a promise, a social mechanism, and a stabilizing force . That is not rhetorical flourish. It is a practical truth. Because when disasters strike—and they will—insurance determines whether a family rebuilds or falls into poverty. Whether a business reopens or closes permanently. Whether a community recovers quickly or remains dependent on aid for years. And yet, we continue to face an uncomfortable fact: too many Filipinos remain uninsured or underinsured. This is the protection gap , and it is widening in dangerous ways. In an era of intensified disasters and cascading crises, an uninsured population is not merely a market opportunity—it is a national vulnerability. The Doomsday Clock and the Risk of “Cascading Failure” The Bulletin’s warning is not simply that any single catastrophe could happen. It is that the world is approaching a threshold where multiple crises compound each other , overwhelming systems. Insurance professionals understand this concept well: the difference between a manageable loss and a catastrophic loss is often not the event itself, but whether systems can absorb it. Consider what happens when: climate-driven disasters disrupt food and power supply, geopolitical conflict raises commodity prices, disinformation accelerates panic and destabilizes governance, and AI-driven cyber incidents cause financial and operational breakdown. That is not science fiction. Those are cascading failures . And this is exactly what the Doomsday Clock is trying to signal: that humanity is nearing a point where our interconnected systems—political, ecological, economic, digital—may fail faster than we can respond. What PIRA and the Industry Must Commit To If the Clock moves closer to midnight on January 27, our response should not be despair. It should be discipline and purpose. The Philippine insurance industry must commit to five urgent priorities: Close the protection gap through inclusive products Microinsurance, parametric solutions, agriculture and SME protection, catastrophe covers—these must become mainstream, not marginal. Strengthen catastrophe modeling and reinsurance capacity We must price risk accurately, invest in data, and ensure solvency for larger shocks. Modernize claims and make trust visible Trust is not built through messaging—it is built at claim time, when policyholders are most vulnerable. Treat cyber risk as a national resilience issue AI-driven threats and systemic cyber disruption are rapidly becoming insurable events of national consequence. Partner with government and regulators for resilience ecosystems The public does not experience risk in silos. Neither should our protection systems. Midnight Is Not a Metaphor for the Philippines For some nations, the Doomsday Clock is symbolism. For the Philippines, existential risk is already familiar. We experience it every typhoon season. Every flood. Every earthquake. Every disruption that erases livelihoods and reorders lives overnight. So when the world asks, “Are we closer to midnight?” we should answer with clarity: We are already living in the hour where resilience determines survival. Our task—our duty as an industry—is to ensure that when crises come, fewer Filipinos face them alone. And if the Clock moves closer this year, then let it also move us—toward a stronger insurance culture, deeper national resilience, and a clearer sense of what our industry was built to do. Because if midnight is approaching, then insurance is not just protection. It is preparedness. It is recovery. It is national stability. And it is time we fully stepped into that role. Source: manilatimes.net

Philippine President Marcos has signed the country's PHP6.793tn ($121.3bn) national budget for 2026, restoring government subsidy to the state insurer, the Philippine Health Insurance Corporation (PhilHealth). The signing was held on 5 January at Malacañang Palace. Of the total, PHP129.8bn was allocated to strengthen the state insurer, including PHP60?bn that had been wrongfully remitted to the national treasury following a Supreme Court ruling. In 2025, the state insurer received no government subsidy after lawmakers scrapped the proposed PHP74bn allocation due to its sizeable reserves. “These funds shall support preventive healthcare and the improvement of PhilHealth benefit packages, lowering the out-of-pocket expenses of Filipino families,” the President said. Source: www.asiainsurancereview.com

By Michael F. Rellosa - Executive Director Christmas Day has passed, but the season remains—and perhaps this quiet stretch between the holidays and the New Year is where its meaning settles deepest. This is the time when families return to work, businesses prepare their next moves, and many Filipinos begin to think again about what the year has brought: the joys, the hardships, and the uncomfortable truth that no matter how hard we work, certain risks remain beyond our control. For the Philippines, that truth is not abstract. We live with typhoons, floods, earthquakes, fires, health threats, economic disruptions, and increasingly, digital risks. We experience uncertainty in ways that can undo years of progress in a matter of hours. Every year, the list of vulnerabilities grows, and the consequences become harder to ignore. That is why this moment is important for the Philippine insurance industry. Because insurance is not simply a business. It is a promise. A social mechanism. A stabilizing force. And in a country as exposed as ours, it should be one of the strongest pillars of resilience we can offer. Yet if we are honest with ourselves—as leaders, professionals, and stewards of this industry—we know there is still work to be done. The protection gap remains wide. Too many Filipinos remain uninsured or underinsured. Trust, while improving, remains fragile. And some who do have coverage still experience insurance as complicated, slow, or distant from their real needs. This is not a season for blaming. It is a season for reflection—and then for action. The Role We Were Built For Insurance exists because a society accepts a moral and practical truth: people should not face catastrophe alone. When done well, insurance enables families to recover with dignity. It allows businesses to rebuild and keep workers employed. It helps communities stand up again after disasters. And it reduces the long-term dependency that often follows emergencies, especially among those already struggling. If this is our mission, then our success cannot be measured only by premiums, profits, or market share. Those are important indicators—but incomplete. Our true scorecard is much larger: Did we expand access meaningfully? Did we strengthen trust in our systems? Did we pay claims fairly, clearly, and promptly? Did we make protection understandable, not intimidating? Did we help the country become more prepared—not merely more insured? These are the questions a New Year should ask of an industry like ours. A Word to Our Stakeholders To insurers and reinsurers: we are underwriting the future. Discipline and solvency must remain non-negotiable—but so must our willingness to design solutions that meet people where they are, not only where profitability is easiest. Sustainable growth and social relevance must no longer be treated as competing goals. To agents, brokers, and intermediaries: you remain the human face of this industry. You do not simply sell policies—you shape belief. When you educate ethically and recommend responsibly, you protect not only customers but the credibility of the entire sector. To claims teams and front-line service leaders: you carry the moment of truth. A claim is not a transaction—it is a policyholder’s crisis. In those moments, insurance becomes either a lifeline or a disappointment. How we show up then will determine whether people trust us again. To boards and investors: our long-term stability rests on public confidence. Every decision that prioritizes short-term gain over policyholder experience risks weakening the foundation that keeps this business viable. To regulators and association leaders: the public expects protection ecosystems, not fragmented processes. Collaboration, modernization, and consistent enforcement are not luxuries—they are expectations. To our technology and innovation partners: digital transformation must do more than speed up processes. It must widen the door. Innovation must make protection more accessible, more understandable, and more inclusive—especially to those who need it most. And to every professional across the industry—underwriters, actuaries, compliance teams, operations, finance, customer care—I want to say this plainly: You are part of one of the most consequential missions in Philippine society. Your work determines whether a family rebuilds—or breaks—after loss. Trust Is Our Greatest Asset Many industries compete for customers. The insurance industry must first earn belief. Trust is not built through marketing. It is built through clarity, consistency, and lived experience—especially at claim time. It is built through transparency in what is covered and what is not. It is built by rejecting unethical practices wherever they exist. It is built by making insurance simple enough for people to understand, and fair enough for people to embrace. If we want to spur a healthier insurance culture in the Philippines, we must treat trust as our most important asset—because without it, insurance is only paper. The Opportunity of the New Year The Philippines will not suddenly become less exposed to risk. If anything, exposure will grow. But we can decide that the nation will not remain equally vulnerable. The coming year can be the year our industry deepens its purpose: becoming more transparent, more responsive, more inclusive, and more essential to national resilience. And if we do that—if we move beyond merely selling policies toward building real protection—then perhaps years from now we will look back and say: This was the season we stepped into the role we were meant to play. Not only as an industry, but as a pillar of national recovery and preparedness. That would be a worthy legacy for a New Year. Happy New Year everyone!

THE appointment of Markus Lacanilao as the new chief of the Land Transportation Office (LTO) in October 2025 has been met with cautious optimism from many quarters. The LTO, an institution essential to the daily movement of millions of Filipinos, has long faced challenges relating to operational bottlenecks, legacy systems and public trust. Lacanilao’s entry into the agency brings with it not just new leadership but an opportunity to recalibrate priorities and strengthen long-standing processes. Coming from a career as ambassador and special envoy for transnational crime, Lacanilao arrives with experience in cross-border coordination, policy implementation and system integrity — skills that naturally translate into the complex regulatory environment of the LTO. His background suggests a leader accustomed to navigating sensitive issues requiring both firmness and diplomacy. This may explain why, in just his first weeks, he has managed to take decisive steps while still maintaining constructive relationships with stakeholders. One of his earliest actions — placing four regional directors from National Capital Region, Regions 2, 4B and 12 on administrative removal due to allegations of irregularities — was a clear signal of his intent to strengthen internal accountability. Yet, what stands out is that these developments did not lead to public discord within the organization. Instead, they were accompanied by supportive statements from several industry groups, suggesting that the reforms were broadly viewed as part of a sincere effort to reinforce professionalism within the LTO. Focus on systems strengthening Lacanilao’s first 45 days indicate a management style that emphasizes systems improvement and interagency collaboration. His signing of a MOA with the Bureau of Customs to create an automated and integrated framework for monitoring the importation of high-end and luxury vehicles is a forward-looking step. Such initiatives, if effectively implemented, can reduce administrative burdens while helping ensure that only properly documented vehicles reach Philippine roads. Similarly, his efforts to address “no-shows” in licensing and registration processes, and to minimize informal “payola” practices, demonstrate a consistent alignment with ensuring transparency and predictability in agency transactions. The reported reduction in extortion affecting colorum public utility vehicles is another positive development that aligns with broader government efforts to level the playing field for legitimate operators. These actions, taken together, suggest an early reform direction focused not on dramatic overhauls but on strengthening foundational processes — an approach that tends to create more sustainable impacts. A good example of Lacanilao’s balanced approach is his decision to delay the impounding of e-bikes and e-trikes on major roads until Jan. 2, 2026. With growing public concern and confusion around the enforcement of this policy, the temporary deferment gave regulators, local government units and the public more time to clarify rules and ensure that implementation would be both fair and well understood. This gesture reflects a willingness to listen and adapt — an important quality for any leader in a highly visible agency like the LTO. Constructive partnership: CTPL and nonlife insurance industry Among the sectors closely watching Lacanilao’s administration is the nonlife insurance industry, which plays an integral role in the system of compulsory third party liability (CTPL) insurance required for motor vehicle registration. Over the years, insurers have expressed a desire to collaborate more closely with the LTO to address operational gaps relating to CTPL issuance, monitoring and data integration. Challenges such as fake policies, inconsistent verification systems and duplicative issuance have persisted largely because technology and processes have not evolved at the same pace as the needs of motorists and insurers. The industry is hopeful that under Lacanilao’s leadership, the LTO might prioritize system modernization, digital integration and stronger safeguards — changes that would benefit not just insurers but also vehicle owners who rely on valid CTPL protection. Importantly, the tone coming from insurance stakeholders is collaborative rather than critical. Many believe that Lacanilao’s early emphasis on transparency and modernization creates a conducive environment for constructive engagement. The opportunity now is for the LTO and the insurance sector to jointly explore reforms that improve efficiency, discourage fraud and provide motorists with a smoother, clearer CTPL experience. Chance to build long-term institutional confidence While it is still early in his tenure, Markus Lacanilao’s leadership so far has shown a blend of decisiveness and diplomacy. His actions signal a desire to strengthen systems rather than merely disrupt them, and to engage stakeholders rather than sideline them. These qualities are particularly important in a regulatory agency whose success relies heavily on coordination with industry groups, local governments and law enforcement partners. If he continues to pursue reforms in a manner that is consultative, transparent and data-driven, Lacanilao has the potential to lead the LTO into a period of renewed credibility and institutional stability. For sectors like nonlife insurance that have been eager for modernization and clearer regulatory alignment, his early days in office provide a promising foundation for meaningful collaboration. As with any new leader, the real test will be in the long-term consistency of reforms. But for now, the path appears constructive, and the hope for continued positive engagement remains strong. Source: www.manilatimes.net