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Print articleTen Things to Know – Insurance Regulation in the Philippines
April, 2013 - Mia G. Gentugaya
1 The regulator
The Insurance Commission is the insurance regulator. It is a government agency under the Department of Finance.
The Commission supervises and regulates the operations of insurance and reinsurance corporations, which need to be
authorised.
Pre-need companies – companies that provide pre-need contracts, being contracts for the provision of future
payments or services including life, pension, education and interment – must also be licensed by the Insurance Commission.
Insurance agents, general agents, resident agents, underwriters, insurance brokers, adjusters and actuaries must be licensed.
Authorisations and licences must be renewed annually.
2 Subsidiary/Branch
Locally incorporated corporations (domestic insurer) and branches of foreign insurers and reinsurers (foreign insurer) are permitted to be licensed and carry on business in the Philippines as an insurer, reinsurer or pre-need company.
A foreign insurer, reinsurer or broker must appoint a resident agent.
3 FDI restrictions
There is no limit on foreign equity ownership in a domestic insurer. However, foreign equity affects the applicable minimum paid-up capital required for existing insurers.
Foreign equity ownership in a domestic loss adjuster company cannot exceed 40 per cent.
4 Control approvals
No person, other than an insurer authorized by the Insurance Commission, may acquire control of any domestic insurer without giving 20 days’ prior written notice to the domestic insurer, and without obtaining the prior written approval of the Insurance Commissioner.
The Insurance Commission is the insurance regulator. It is a government agency under the Department of Finance.
The Commission supervises and regulates the operations of insurance and reinsurance corporations, which need to be
authorised.
Pre-need companies – companies that provide pre-need contracts, being contracts for the provision of future
payments or services including life, pension, education and interment – must also be licensed by the Insurance Commission.
Insurance agents, general agents, resident agents, underwriters, insurance brokers, adjusters and actuaries must be licensed.
Authorisations and licences must be renewed annually.
2 Subsidiary/Branch
Locally incorporated corporations (domestic insurer) and branches of foreign insurers and reinsurers (foreign insurer) are permitted to be licensed and carry on business in the Philippines as an insurer, reinsurer or pre-need company.
A foreign insurer, reinsurer or broker must appoint a resident agent.
3 FDI restrictions
There is no limit on foreign equity ownership in a domestic insurer. However, foreign equity affects the applicable minimum paid-up capital required for existing insurers.
Foreign equity ownership in a domestic loss adjuster company cannot exceed 40 per cent.
4 Control approvals
No person, other than an insurer authorized by the Insurance Commission, may acquire control of any domestic insurer without giving 20 days’ prior written notice to the domestic insurer, and without obtaining the prior written approval of the Insurance Commissioner.
Control means power to direct or cause the direction of the management and policies of the domestic insurer, and is
presumed to exist when one person owns, controls or holds, directly or indirectly, 40 per cent or more of the voting shares of the domestic insurer. Directors and officers must satisfy fit and proper criteria.
5 Minimum capital
For existing domestic and foreign insurers (life or non-life):
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