Insurance industry attracts 2 foreign firms

At least two foreign insurance players were eyeing to establish their presence in the country, a move that Insurance Commissioner Emmanuel F. Dooc said would bode well for an industry trying to strengthen its finances.

In a telephone interview Thursday, Dooc said one Taiwanese insurance giant as well as another foreign firm he declined to identify were looking at three options: to fully operate as a business here, to find a joint venture partner, or to buy an existing firm. There are no restrictions to foreign investments in the insurance sector.

Dooc said this development would support further growth in the industry, especially since a number of companies would need to consolidate ahead of a scheduled hike in mandatory paid-up capital by the end of this year. Under Republic Act No. 10607 or the Amended Insurance Code, all domestic life and non-life insurance firms must have a paid-up capital of at least P550 million by the end of 2016.

Dooc said domestic players having difficulties complying with the capitalization requirement were required to submit their business plans. The IC will then assess their viability before the end of the year.