About half of insurers are so far compliant with the P1.3 billion net worth requirement for insurance companies by year-end, data released by the Insurance Commission (IC) showed.
In a statement, the IC data showed that of the 83 licensed life and non-life insurers, 42 have already met the year-end net worth requirement.
“With December 31, 2022 fast approaching, latest data show that more insurance companies are now geared towards compliance with the P1.3 billion net worth requirement under the Insurance Code,” Dennis Funa, insurance commissioner, said.
The IC said based on the quarterly Financial Reporting Framework (FRF) reports of licensed non-life insurance companies as of September 2021, 23 of 52 companies are already compliant with the P1.3 billion requirement.
Of the remaining 29 non-life insurers, 17 companies have net worth exceeding P1 billion and three companies have net worth exceeding P950 million.
Meanwhile, the quarterly FRF reports of licensed life insurance companies also reveal that 19 of 31 companies are already compliant with the P1.3 billion requirement. Of the remaining 12 life insurers, seven companies have net worth exceeding P1 billion and two companies have net worth exceeding P950 million.
Under Section 194 of the Insurance Code of the Philippines, existing insurance companies are required to add P400 million to the prevailing P900 million net worth requirement by December 31, 2022.
Insurance companies are likewise required to submit to the IC their capital buildup plans containing financial projections, which are duly approved by their respective board of directors and certified and attested by their respective actuaries.
“The statutory net worth requirements ensure that by 2023, insurance companies shall be in a favorable solvency position to address the needs of the insuring public. The P1.3 billion requirement also aims to realize the IC’s vision that insurance companies shall be strong and sustainable and dependable pillars of the Philippine economy in service of the Filipino people,” Funa said. – Angela Celis
