ABS-CBN News Online Beta

Insurance Commission says RP insurance firms stable

By MICHELLE OROSA, ABS-CBN News | 10/06/2008 4:56 PM

Printer-friendly version | Send to friend

The Insurance Commission (IC) said Monday the local insurance industry is resilient and stable enough to weather the ongoing financial crisis abroad.

IC Commissioner Eduardo Malinis assured the public that local insurance companies all have adequate capitalization to pay their policyholders.  

Under the law, insurance companies have to have a minimum capital base of P25 million before they can operate.

Malinis' comments came amid the latest decision of US-based insurer American International Group (AIG) to sell its Philippine subsidiary, Philippine American Life Insurance Company (Philamlife), sending policyholders in frenzy over what effect this would have on their insurance plans.

Malinis stressed that the commission watches over all insurance companies "like a hawk", going over all their books every year to make sure that these had healthy capital and solvency ratios -- which measure a company's capability to meet long-term obligations.

"The policyholders shouldn't worry.  Their investments are well taken care of by the companies, and in any untoward event, the Insurance Commission will always be ready to help.  We don't have any problem here," he added.

As for Philamlife, Malinis said, "[Policyholders] have nothing to worry about with Philamlife.  Philamlife is a good corporate citizen.  They pay their taxes, they pay their planholders."

as of 10/06/2008 5:15 PM