The licenses of foreign insurers seeking to participate in the Philippine market are up for approval this month, according to the Insurance Commission.
Dennis Funa, insurance commissioner, told reporters last week one life and one non-life insurer are eyeing to enter the Philippine insurance market.
Funa said one is from Southeast Asia.
He added these foreign players can comply with the P1.3-billion minimum capitalization required by yearend.
Funa said a higher capitalization will always be good for any company, amid calls to maintain the P900 million minimum capitalization requirement instead of implementing the mandated P1.3 billion by yearend.
“The higher the capitalization is, the farther it is from any financial threat,” he said.
Funa said there are remedies for companies struggling to comply.
“Get new investors, get new stockholders, there’s always a way to raise capital,” Funa said.
Funa estimates that more than half of insurance companies are compliant with the P1.3-billion requirement.
“I cannot recall if it’s already two-thirds. But there’s still a smaller portion that still have to comply,” Funa said.
“We are still in April so they have more than six months to comply. Anything is possible,” he added.
Under Republic Act No. 10607 or the Amended Insurance Code, existing insurance companies are required to have a net worth of at least P550 million by December 2016, P900 million by December 2019 and at least P1.3 billion by December 2022.
