Five insurers will exit the Philippines non-life Insurance Market by the end of the year 2017 because they see new capital requirements as too onerous. In addition, a further eight players are exploring possible mergers that would bring the number of non-life insurers in the country down to 54. The news was announced by the Philippine Insurers and Reinsurers Association (PIRA) which stated that all five companies are currently profitable but do not think they will be able to comply with the increased capital requirement under the newly amended insurance code.
The amendment requires that existing Insurer in the Philippines must have had a net worth of at least 550m Philippine Pesos (PP) which is equivalent to $10.8m by December 2016. The amount will then rise to PP990m ($19.6m) by December 2019 and PP1.3bn ($25.68m) by December 2022.
Data from the commission states that total Premium for the Philippines Insurance Industry in the first quarter of 2017 rose by 19.51%, from PP47.43bn ($93.63m) to 01 in the previous year.