IC, PLIA chase unlicensed insurer

The Insurance Commissioner (IC) has sought the assistance of the National Bureau of Investigation (NBI) to investigate the unlicensed operation of a foreign life insurance firm in Philippine soil.

In a letter dated April 7, the IC asked the NBI "to institute appropriate legal action against all those who may have violated the provisions of our Insurance Code."

Implicated by the IC, and industry association the Philippine Life Insurance Association (PLIA), is the Zurich Financial Services/Zurich International Life.

PLIA president Peter Coyiuto said that they are taking action and seeking the cooperation of the public and certain government agencies "to contain the operations of unlicensed life insurance companies selling business in the Philippines."

Coyuito revealed that the investigation could also involve dollar-salting.

He added that the IC and PLIA is taking steps to remind or warn the insuring public to buy only from licensed companies. "This is good for the economy as the revenues generated by domestic companies are invested in the country to promote its growth and development," the PLIA president added.

According to reports, the unlicensed foreign insurer has been selling insurance policies as early as 2005.

The IC said that Zurich Financial Services/Zurich International Life is without the required local operating license to transact and engage in any form of life insurance business solicitation, in violation of the Insurance Code of the Philippines.

"Life operations of Zurich Financial Services/Zurich International Life are illegal and as such, will be subject to appropriate legal actions and sanctions," it said.