MOST PHILIPPINES INSURERS COMPLY WITH NEW CAPITAL RULES

Most members of the Philippine Insurers and Reinsurers Association (PIRA) have complied with the higher risk-based capitalisation requirements of the country’s Insurance Commission, according to PIRA. Vice-chairman Michael Rellosa said at the weekend that 80% of the 90-member organisation had met the new requirements. Last year’s order from the Department of Finance required Filipino-owned life and non-life companies to double their minimum paid-up capital to 250m pesos ($5.46m) and their net worth to 500m pesos by 2011. Less than 40%-foreign owned companies were required to treble paid up capital to at least 300m pesos and statutory net worth to a minimum of 60m pesos. For more than 40% but less than 60% foreign owned companies, the requirements increased to 350m pesos and 700m pesos, while for more than 60% foreign-owned companies the requirements rose to 500m pesos and 1bn pesos.