BusinessWorld, Finance
Posted on 02:04 PM, November 10, 2010
Breaking News ( Updated as of 01:54 PM )
A REGULATORY framework for micro-insurance companies will be implemented in January, officials said on the second day of the sixth International Micro-insurance Conference in Makati City.
"The performance standards [regulations] will take in effect by January 2011," said Vida T. Chiong, Insurance Commission deputy commissioner and officer-in-charge.
"This will serve as a guide for the commission and other stakeholders to determine the viability of a [micro-insurance] company -- if it has the capacity to settle claims in the future," she added.
Ms. Chiong said the standards will provide "regulatory space" to micro-insurers with "lower" requirements for putting up a micro-insurance compared to those stipulated in the Insurance Code.
Geraldine Desiderio-Garcia, chairman of the micro-insurance committee of the Philippine Life Insurers Association, said in a lecture at the conference the standards will "formalize existing micro-insurance practices" such as cutting by half the P100-million capital requirement -- the fund to put up a micro-insurance firm -- for commercial insurers.
The standards, currently undergoing fine-tuning by a technical working group composed of government officials and private representatives, will be transmitted next month to a micro-insurance steering committee, headed by Finance Undersecretary Gil S. Beltran,, for review.
The Insurance Commission will give final approval of standards. -- Prinz P. Magtulis
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