Non-life insurers renew appeal to operate in Makati

MANILA, Philippines - The non-life insurance companies are renewing their appeal to the city government of Makati for a chance to participate in the issuance of comprehensive general liability (CGL) policies in applications for business permits.

All companies located in Makati must renew their business license, which includes among others, getting a CGL. But the local government has been recognizing only 15 insurers out of the total 60 licensed by the Insurance Commission (IC) for the past two years.

In a letter to Makati Mayor Jejomar Erwin “Jun-jun” S. Binay Jr., the Philippine Insurance and Reinsurers Association (PIRA) said everyone should be allowed to practice the constitutional right to practice their legitimate profession.

The PIRA said since 2009, City Hall approved and accredited a shortlist of 15 insurance companies, who were exclusively allowed to write or issue public liability policies in support of business permit applications covering business establishments/applicants.

“Regrettably, this has resulted in the disenfranchisement of the rest of the insurance companies, who are duly-licensed by the Insurance Commission to do business and issue such policies anywhere in the Philippines. The entire process undermines the regulatory and licensing authority of the IC over all non-life insurance companies under the law,” the trade organization said.

PIRA chairman Michael F. Rellosa said it was “a clear impingement of the constitutionally guarantee on equal protection of law, due process, and proscriptions against laws or schemes that are in restraint of trade.”

In 2009 and this year, PIRA called the attention of the IC, which wrote the city government stating that it is not within Makati’s power to determine the capacity of insurance companies. The IC advised that all licensed insurance companies with valid certificates of authority must be allowed to participate in issuing insurance policies anywhere in the Philippines.

“The Insurance Code explicitly says that it is the Insurance Commission which has the power to oversee insurance companies,” Rellosa said.

It is critical that the insurance companies and the local government come to an agreement as the annual registration period ends in January.

“In short, we are asking the local government to remove the shortlist and allow everyone a fair chance to solicit business,” he told The STAR.

Last October, the acting city administrator still issued an invitation for accreditation advisories to insurers.

“That is reminiscent of the cycle of this discriminatory accreditation scheme that is being practiced every year,” the PIRA members said.

The 15 accredited companies are: Malayan Insurance, Philam Insurance, Pioneer Insurance, BPI/MS Insurance, Tokio Marine Insurance, Prudential Guarantee, Standard Insurance, UCPB General Insurance, Philippine Charter Insurance, Mapfre Insurance, PNB General Insurers, Federal Phoenix Assurance, Philippines First Insurance, Alliedbankers Insurance and Cibeles Insurance.