IC backs insurers' plea on doing business in Makati

The Insurance Commission (IC) is backing an industry plea to allow all non-life insurance companies to do business in Makati City.

“We are presently drafting a letter to explain to Makati Mayor Jejomar Binay that it is proper to allow all non-life insurance companies to do business in Makati, as long as these companies have been issued licenses by the IC,” IC Commissioner Eduardo T. Malinis said.

“Makati should allow all the licensed insurers to compete in a level playing field,” Malinis added.

The non-life insurers, represented by the Philippine Insurers and Reinsurers Association (PIRA), have protested a Makati ruling naming only 15 of the 90 players in the non-life sector to sell third party liability (TPL) insurance coverage for business and car owners, or the Comprehensive General Liability (CGL) insurance in Makati.

Business permits are not renewed in Makati unless applicants have renewed their CGL.

Acting Makati City Administrator Marjorie de Veyra has issued an ordinance in November 2007 stating that any insurance company wishing to offer TPL insurance policies to business and car owners in the city must first apply for accreditation with the Office of the Mayor.

Based on the circular, the 15 accredited companies are Malayan Insurance, Philam Insurance, Pioneer Insurance, BPI/MS Insurance, Tokio Marine Insurance, Prudential Guarantee, Standard Insurance, UCPB General Insurance, Philippine Charter Insurance, Mapfre Insurance, PNB General Insurers, Federal Phoenix Assurance, Philippines First Insurance, Alliedbankers Insurance, and Cibeles Insurance.

They are the top 15 non-life insurers based on total sales in 2007, and majority have head offices in Makati.

Malinis agreed with PIRA that the Makati local government should not favor just 15 insurers.

However, PIRA officials expressed concern that they may not make the Jan. 20 deadline for business permit renewal in Makati.

“Insurance companies that are not accredited are losing their clients due to the city’s discriminatory policy,” PIRA spokesman Michael Rellosa said.