MANILA, Philippines - Chartis Philippines Insurance Inc., a subsidiary of US insurance giant AIG, said it will no longer offer some of its products and services starting Dec. 1.
In a notice dated Nov. 21, Chartis Philippines president and CEO Anton Du Plessis, said the company would “discontinue writing the following lines of business: automobile, personal property (residential fire) and expat medical (global health)insurance.”
Du Plessis said the move was in line with the AIG Group’s global operational strategy.
“As you know, Chartis Philippines is part of the AIG Group of Companies. In the prevailing market conditions, AIG standards do not allow us to achieve the necessary pricing relative to the risk we are assuming for these lines of business,” he said.
“This prevents us from attaining the necessary scale to support the technology and investment required for the future.”
Du Plessis said Chartis Philippines will eventually close some of its business channels.
“These products are largely driven by the agency force and as a consequence, we are closing down our agency and branch channel. The agency agreement we have with our agents will be terminated effective Feb. 1, 2013,” he said.
“With the withdrawal of these products, we will be sending out non-renewal notices to expiring policies starting February 2013 and we will no longer be accepting new business as of Dec. 1, 2012,” he added.
The company, however, said it would continue to service existing policies until their expiry date.
Despite the shutdown of several of its business lines, Du Plessis said “Chartis Philippines remains a competitive and stable insurance company fully committed to the market segments we have chosen to support.”
Chartis offers a variety of products and services, including crisis management captive management and global loss prevention. It is a leading property-casualty and general insurance organization serving more than 70 million clients around the world.
Chartis in the Philippines was formed following the integration of the business portfolios of American Homes Assurance Co., AIU Philippines Inc. and the Philippine American General Insurance Co. (Philam Gen). This integration streamlined the operations countrywide and developed a more responsive and service-oriented organization for producers and policyholders.