Insurance firms trimmed to less than 100

MANILA, Philippines - The number of players in the country’s insurance industry has drastically gone down from over 200 in the 1990s to less than 100 at the end of March this year, the Insurance Commission said.

Of the total licensed companies for the period 2016 to 2018, four are composite licensees (certified to operate as life and non-life insurers), 26 life insurance firms, 62 non-life insurance companies, and one reinsurance firm.

At the end of 2016, insurers are required a minimum capital of P550 million from the present P250 million as regulators want to make sure insurers are financially sound to meet projected claims of maturing policies.

“Nearly 20 percent of existing players will be challenged to meet the P550-million capital requirement,” IC said.

Meanwhile, 43 insurers were placed under conservatorship, receivership, or for liquidation (CRL).

A firm placed under conservatorship is still showing signs to recovering, those under receivership are generally for acquisition, and those for liquidation are merely winding down business and destined for closure.

“The biggest losers in this situation is the insured public that will take losses from their earlier investments for protection,” the IC said.

Meanwhile, pre-need companies that have been placed under CRL by the IC numbered 32, while another six are under court rehabilitation and 11 shuttered pre-need firms remain under the jurisdiction of the Securities and Exchange Commission (SEC).

IC officials said majority of pre-need firms under CRL are merely servicing live plans and will be liquidated thereafter.

The IC has only issued licenses to 14 pre-need firms, although a number are merely wrapping up business or servicing live plans before closing shop. In the early 1990s, pre-need firms reached over 100 then under the supervision of the SEC.

In the list of shuttered pre-need firms are the Comprehensive Annuity Plans and Pension Corp. (CAP-Pension), Prudentialife Plans, Pryce Plans, PET Plans and TPG Corp.