IC orders halt on operations of Intra Strata Assurance

MANILA, Philippines —  The Insurance Commission (IC) has issued a cease and desist order against non-life insurer Intra Strata Assurance Corp. citing its failure to comply with legal and regulatory requirements set forth by the law.

In a notice to the public, IC said ISAC failed to meet the obligatory demands in accordance with Republic Act 10607, or the amended insurance code of the Philippines.

With the restraining order, IC has suspended ISAC’s certificate of authority, which essentially prevents the company from engaging in any new insurance transactions or conducting business of any kind or nature.

“The company was ordered to cease and desist from transacting any new insurance business of any kind or character and was simultaneously placed under conservatorship,” the notice from IC read.

In a statement, ISAC said all existing insurance policies and obligations remain valid and enforceable despite the suspension. It clarified that the order affects only the issuance of new policies, reaffirming its full commitment to honoring obligations to current policyholders.

The insurer added that they are working closely with the IC and appointed an interim conservator to ensure transparency and continued protection of policyholders, emphasizing that they had addressed internal lapses in handling regulatory correspondence.

“We emphasize that ISAC remains financially sound and committed to serving its policyholders. The company is confident that upon submission of the final audited statements and fulfillment of regulatory requirements, the CDO and conservatorship measures will be lifted,” ISAC said.

Established in 1959, the Makati-based insurer is one of the country’s oldest non-life insurance companies and was originally known as Overseas Insurance Co.

“The cease and desist order issued by the IC is an interim regulatory measure. ISAC has formally requested that the effectivity of the cease and desist order be held in abeyance pending submission of the final signed audited financial statements,” the non-life insurer said.