Philamlife backs transfer of pre-need industry to IC

Financial giant Philippine American Life and General Insurance Co. (Philamlife) is in favor of transferring the supervision of the pre-need industry from the Securities and Exchange Commission (SEC) to the Insurance Commission (IC). The case of health maintenance organizations (HMOs) which are now under the supervision of the Department of Health (DOH), however, is another matter.

In an interview, Philamlife president and chief executive officer Jose L. Cuisia Jr. said he is in favor of recommendations in Congress for the transfer of the pre-need industry from the SEC to the IC.

"The pre-need industry should be placed under the IC," Cuisia said. "It (pre-need industry) is very similar to the insurance industry and the IC has the expertise to regulate and develop that industry."

The Philamlife group has both a pre-need company (Philam Plans) and an HMO (Philam Care), and both are leaders in their respective sectors.

However, he feels that the IC would need help in regulating the HMO industry.

"But the HMO industry is different. I do not think the IC has the expertise to regulate the HMOs," Cuisia added.

There are moves in Congress to transfer the two industries to the IC. The pre-need industry and the SEC had earlier expressed readiness for the transfer.

The DOH had also stated that it would not object should Congress decide to have the HMO industry moved to the IC.

Cuisia expressed reservations about the ability of the IC at the moment to regulate and develop the HMO industry. He suggested that government tap the expertise of industry leaders to directly assist the IC.

"Should Congress place the HMO industry under the IC, there must be provision by government to provide the expertise. The DOH admitted to not having the expertise to regulate much less develop the HMOs. So government must provide the expertise and the resources," the Philamlife chief executive stressed.