Pre-need, HMO industry must be under IC, says new commissioner

Newly appointed Insurance Commissioner Benjamin S. Santos categorically stated that he wants the pre-need and health maintenance organizations (HMOs) to fall under the wings of the Insurance Commission (IC).

Former Commissioner Eduardo T. Malinis retired after serving the insurance industry for more than 40 years, mostly in the public service sector.

Just a week into office, Santos said both industries are basically financial institutions with functions and operations similar to the insurance industry. The IC is a line agency of the Department of Finance (DOF).

Presently, the pre-need industry is regulated by the Securities and Exchange Commission (SEC) while the HMOs are under the wings of the Department of Health (DOH).

In the past two years, both the pre-need and HMO industry has experienced significant declines in both sales and the number of players. Both industries have been subject to numerous complaints from the saving public or client base of non-payment of claims.

In fact, Malinis already organized a technical working committee to look into the type of regulatory environment it would undertake in the event that the pre-need industry would be handed over by the SEC. It is composed of representatives from the IC, the SEC and private sector representatives of the pre-need industry.

However, transferring the two industries require legislative action.

Santos meanwhile made it clear that the IC must also be allocated a bigger budget if it were to enforce its mandate effectively. That was also one of the recommendations of the technical committee.

Increase in budgetary allocation not only covers that increase in regulatory functions but also the improvement of services of its present functions.

High among the new commissioner’s list of improvements is technology. That means computerization for both internal management and regulatory requirements, and for the information and access for the saving or investing public.

Computerization was initiated last year but once more budgetary constraints resulted in its suspension.

Santos is mulling outsourcing technological expertise "to make tasks less costly and time-efficient as well as interactive." He however admitted that time is still required for a thorough review of the commission’s operations before anything is finalized.

"I am still open to consultations," he added.

Santos was sworn into office end July but assumed the position only in August 2.

Based on official records, the 65-year-old native of Bayumbong, Nueva Vizcaya finished the advanced management program of the Harvard Business School in 1978. He finished a Bachelor of Scince in Commerce at the De La Salle University.

He is the founding director of both the Philippine Health Care Providers Inc., and the Urban Development Bank, and a director in both Omni Aviation Corp. and the Mt. Samat Ferry Express Inc.

Santos has worked for the Philippine American Life and General Insurance Corp., the Industrial Finance Corp., the Bancom Group of Companies, the Republic Telephone Co., the Philippine Inter-Fashion Inc., Dasmariñas Garments Corp., and Procter and Gamble Philippines.