14 July 2015
Insurance Commission: Regulatory
Updates
(A presentation to the Regulators’ Forum)
by
Vida T. Chiong
Deputy Insurance Commissioner
INSURANCE COMMISSION BUILDING
Address : Insurance Commission
1071 United Nations Avenue, Manila
Website : www.insurance.gov.ph
Republic of the Philippines
Department of Finance
INSURANCE COMMISSION
www.insurance.gov.ph
Insurance Commission Regulated Entities
Insurance Companies
99
Composite
4
Life
27
Non-Life
67
Professional Reinsurer
1
Mutual Benefit Association
34
Pre-Need Companies
14
Insurance/Reinsurance Brokers
83
General Agents
329
Republic of the Philippines
Department of Finance
INSURANCE COMMISSION
www.insurance.gov.ph
Industry’s Total Assets as of Dec. 31, 2014
(in Billion pesos)
Life Sector
855.3
Non-Life Sector (Including Professional Reinsurer)
160.9
Mutual Benefit Associations
49.8
Pre-Need
116.2
Total
Republic of the Philippines
Department of Finance
INSURANCE COMMISSION
1,182.2
www.insurance.gov.ph
IC- Accredited External Auditors
Firms
Signing Partners
Individuals
Republic of the Philippines
Department of Finance
INSURANCE COMMISSION
36
89
15
www.insurance.gov.ph
Accreditation Types:
1. Firms/ Signing Partners:
Life/Non-Life/ Professional Reinsurance Company/Mutual Benefit Association
Accreditation Fee
Firms
Signing Partners
₱ 50,000.00
₱ 5,000.00
2. Individuals:
Trusts for Charitable Uses/ Insurance& Reinsurance Brokers/ General Agents
Accreditation Fee - ₱ 5,000.00
Republic of the Philippines
Department of Finance
INSURANCE COMMISSION
www.insurance.gov.ph
Accreditation Process:
Reference: IC Circular Letter No. 29-2009
Dated November 10, 2009
Undertaking of the External Auditor:
Among others, to preserve his working papers
including any other related documents for a
period of five (5) years and making them available
to the Commissioner’s representatives when
required.
Republic of the Philippines
Department of Finance
INSURANCE COMMISSION
www.insurance.gov.ph
Regulatory Updates:
Reference: 1. New Insurance Code or RA 10607
Signed into law in September 2013
2. Circular Letters and Advisories
issued
by
the
Insurance
Commission
Republic of the Philippines
Department of Finance
INSURANCE COMMISSION
www.insurance.gov.ph
Capitalization Requirements
1. Existing Insurance Companies
Compliance Date
Minimum Networth (in million pesos)
2013
250
December 31, 2016
550
December 31, 2019
900
December 31, 2022
1,300
2. Existing Professional Reinsurer
Compliance Date
Minimum Networth (in billion pesos)
2013
2.00
December 31, 2016
2.25
December 31, 2019
2.50
December 31, 2022
3.00
Republic of the Philippines
Department of Finance
INSURANCE COMMISSION
www.insurance.gov.ph
Cont.:
Capitalization Requirements
3. New Insurance Companies
Minimum Paid-up Capital:
Contributed Surplus:
₱ 1,000,000,000
₱ 100,000,000
4. New Professional Reinsurers
Minimum Paid-up Capital:
₱ 3,000,000,000
Contributed Surplus:
₱ 400,000,000
Republic of the Philippines
Department of Finance
INSURANCE COMMISSION
www.insurance.gov.ph
New Financial Reporting Framework
(coverage)
1. Chart of Accounts for Insurance Companies
2. Reserve Valuation Standards for Life Insurance
Companies*
3. Reserve Valuation Standards for Non-Life Insurance/
Reinsurance Companies**
4. Proposed RBC2 Template
5. Timelines for Submission of Reports for the Parallel
Runs
________________________
*Gross Premium Valuation Method
**UPR 24th method; To use actuarial method in computing other reserves
Republic of the Philippines
Department of Finance
INSURANCE COMMISSION
www.insurance.gov.ph
Cont.:
New Financial Reporting Framework
(coverage)
6. Valuation of Assets
7. Investments Limits
8. Allowable Investments
9. Admitted/ Non- Admitted Assets
10. Fees, Charges & Penalties
Republic of the Philippines
Department of Finance
INSURANCE COMMISSION
www.insurance.gov.ph
THANK YOU