The Insurance Commission (IC) on Thursday said it will allow leading global insurance broker Marsh UK to submit evidence that it was not operating illegally in the country.
“In a letter dated April 3, 2017, PGA’s counsel requested the IC to conduct an investigation on the manner by which Marsh UK and Marsh Singapore conduct business in the Philippines,” Insurance Commissioner Dennis B. Funa said in a statement, referring to domestic nonlife insurance firm Prudential Guarantee and Assurance Inc.
It was earlier reported that lawyer Jose Bernas was urging the IC to investigate Marsh UK, as he pointed to the firm’s self-admitted use of “fronting insurers” to bypass Philippine laws as well as do business in the country sans a license.
“While Marsh Philippines is a licensed insurance broker, Marsh UK is not. Marsh UK is a reinsurance broker that may only tender brokerage services to an insurer and cannot tender insurance brokerage services nor insurance services to an insured or potential insured (client),” Bernas said in a recent letter to Funa.
For the part of the IC, Funa said: “In addressing the request and in order to verify the allegations of PGA, the IC directed Marsh UK and Marsh Singapore to submit their respective comments. Upon receipt by the IC of the comment of Marsh Singapore, the IC requested PGA to submit its reply to the comment of Marsh Singapore.”
“PGA’s request for a conduct of an evidentiary hearing to determine whether Marsh UK, Marsh Singapore, and Marsh and Mclennan Companies are indeed doing business in the Philippines was made through a letter dated Aug. 31, 2017, which is the reply of PGA to the comments of Marsh UK,” Funa said.
“The request for an evidential hearing includes the determination of whether the license of Marsh Philippines to act as a resident agent of Marsh UK should be revoked for allegedly conspiring in the alleged illegal acts of Marsh UK,” Funa added.
Also, Funa said that “it would be more appropriate that these matters should be threshed out in an appropriate proceeding following the rules of procedure governing administrative cases before the IC under Insurance Memorandum Circular 1-93.”
“As of the moment, the IC cannot comment on the allegations of PGA against Marsh UK until and unless we have received and evaluated the evidence of both parties in support of their respective allegations. To do otherwise would constitute a prejudgment on the issues,” according to Funa.
“The IC, in the exercise of its administrative powers, can hear and decide cases for violation of the Amended Insurance Code and impose appropriate penalties, if warranted,” he noted. /jpv