Santos has not resigned: DOF

Insurance Commissioner Benjamin S. Santos has not resigned.

"I have not resigned and I do not intend to. I serve under the pleasure of the President. But I do not want to bother the President at this time when she is under siege," Santos said categorically.

Santos was appointed IC Commissioner approximately a year ago following the retirement of then commissioner Eduardo T. Malinis.

But the commissioner explained that the IC is aware of the forces that are trying to kick him out of office. "We have identified them."

He said that there are elements particularly in the non-life insurance industry that has been resisting much-delayed reforms initiated by the commission.

The IC initiated various reform measures to improve the state of the insurance industry especially with the negative effects of the troubled pre-need industry.

It has proposed a gradual increase in paid-up capital in the industry to put it at par with the Asia Pacific region. It has also proposed regular and frequent reporting of the financial status of the industry.

The average capital level of the industry is among the lowest if not the lowest in the region. Presently, local insurers are required a paid-up capital of just P50 million or less than $1 million. In Malaysia, the minimum paid-up capitalization is roughly $30 million, and in Vietnam, it is $5 million.

Likewise, the previous financial reporting system was on an annual basis which resulted in a much-delayed industry report.

For example, the 2004 industry report is received by the IC end April or June 2005. The report is completed and made public some time August or September 2005. "That can not help the regulator to protect the insuring public," Santos said.

The commissioner said that it is the unprofessional and unscrupulous insurers especially those in the auto insurance business who may likely want his skin.

"Their unprofessional ways, which has been hurting the insuring public, is being threatened by the reforms initiated by the commission," Santos said, adding that the professional and honest insurers in the life, non-life and reinsurance industry have approved of the said reforms.

"Some are asking for an extention but not the removal of the said reforms," he added.

Meanwhile, the Department of Finance (DOF) categorically stated that they were unaware of such reports or rumors.

"The Secretary has no knowledge of the rerpoted resignation of Mr. (Benjamin) Santos nor has he received any resignation letter. The Finance department does not speculate on rumors," a Finance department statement said. – Ted Torres