Insurers fine with capital requirement
By Michelle Remo
Philippine Daily Inquirer
First Posted 07:36:00 11/22/2008
Filed Under: Insurance
The Philippine Life Insurance Association is confident that all its members can meet the increased capitalization requirement set by the Insurance Commission starting Dec. 31.
The group’s 33 members make up 90 percent of the country’s life insurance sector.
The commission will require all insurance companies to have a minimum paid-up capital of P75 million by the end of the year, from the present minimum of P50 million.
Its Department Order 27-2006 mandates a yearly increase in the capitalization requirement for insurance companies until the end of 2011, when the minimum will be P500 million.
The organization of non-life insurance companies also says it expects its members to meet if not exceed the capitalization requirement at the end of this year.
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