In a letter to the Federal Office of Price Insurance, the Philippine Life Insurance Association (PLIA) informed the insurance regulator of Switzerland that Zurich Life has not honored its commitment to issue and publish the statement in national dailies (that it was not selling policies in the Philippines) which it has voluntarily agreed to last June.
PLIA president Peter G. Coyuito prayed that Zurich Life would not risk its good reputation by reneging on its commitment.
"Otherwise, it would be difficult for us to believe that Zurich Life has nothing to do with the unauthorized life insurance solicitations being conducted within the Philippines allegedly by its brokers and agents," Coyuito said.
Copies of the letter was also sent to Zurich Financial Services chief executive officer James J. Schiro and Philippine Insurance Commissioner Evangeline C. Escobillo.
Philippine insurers likewise warned that they have already identified the Filipino citizen who has been reportedly selling Zurich Life policies. They warned that they were prepared to take legal action whether it be on the said individual or the foreign insurer.
Local life insurance companies, all of which are also PLIA members and duly licensed by the Insurance Commission (IC), has complained that Zurich Life policies were being sold to Philippine citizens and corporates, despite the fact that Zurich Life does not have the necessary documents to do business in the Philippines.
The IC has since sought the assistance of the National Bureau of Investigation (NBI) and informed the insurance and finance regulators in different countries in the region including Hong Kong.
The series of action forced officials of Zurich Life to seek an audience with the IC.
Last June 28, Zurich Life regional director for Asia Carlos Sabuguiro and its planning director and compliance officer Alastair Jollans held an audience with Escobillo and PLIA officers.
During the dialogue, the said Zurich Life officials categorically stated that they were not engaged and authorized to do business in the Philippines, and that they have not authorized any person or entity to act as an agent or broker in the Philippines.
They claim to have instructed their underwriters not to accept any application from a Filipino or Philippine resident if it is shown that the business was solicited in the country, otherwise, any claim arising from such policy will not be honored.
Local insurers also urged Philippine citizens to buy their policies from local and licensed insurers.
"They will get the appropriate amount for their claims, the industry is sufficiently regulated, and the Philippine government will get the prescribed tax revenues under its laws," the PLIA president stressed.
Policies illegally sold by foreign entities are cheaper being free of local taxes. Local players had to deal with the five-percent premium tax on every policy written plus documentary stamp tax (DST) and the corporate and income taxes required of a legitimate corporation. – Ted Torres