Philippines: Final call to insurance companies on minimum capita

There is a serious warning for all life and non-life insurance companies from the Insurance Commission (IC) if they fail to comply with the PHP900m ($17.8m) minimum net worth. Also, if they won’t reach the minimum capital investment requirement by the regulator’s deadline. Following this ultimatum is highly required by the Insurance Commission.

Source: Asia Insurance Review

Link : https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/50269/type/eDaily/Philippines-Regulator-gives-insurers-ultimatum-on-minimum-capital

 

 

Mother Company in India Giveaway Fresh Capital to Local Insurance

SGI Philippines General Insurance Co. Inc. a non-life insurer has raised its capitalization to P1.3 billion and reached 2022 deadline to uplift paid-up capital. In a statement on Monday (Feb. 17), Insurance Commissioner Dennis B. Funa said ”SGI’s mother company, Shriram General Insurance Co. Ltd, an Indian firm, had “infused fresh capital” of P624 million’’. This is why SGI’s net worth arose from P710 million to P1.35 billion, goes with the paid-up capital hike.

Funa said ”SGI’s move, in accordance with the Amended Insurance Code, “is commendable” since it would project confidence that the company “has a solid source of capital to deliver its promises to the insuring public.”

This inculcates the requirement of insurance players to have a minimum net worth of at least P900 million by the end of 2019.

Earlier, Funa said ”the Insurance Commission would release by April the final list of insurance firms that had complied with the capitalization requirement”.

The commission, he said, ”required the companies to submit capital buildup plans “for us to see an overview of their respective course of action” to comply with the required net worth”.

Companies who submit these plans early would have time to “consider other ways to comply with the requirement other than cash infusion.” Some of these are mergers, consolidation or acquisition, Funa said.

Source: Business Inquirer

Read Full Article Here: https://business.inquirer.net/290686/local-insurance-player-gets-fresh-capital-infusion-from-mother-company-in-india-to-meet-required-capital

Insurance Now More Reliable; Insurance Software to be Launched by SGI Philippines

A fully integrated software solution is going to be launched by SGI in the vision to enhance insurance solution.

In an even last week in Pasay, SGI Philippines General Insurance Co. Inc. President Farhat Hussain said, ” firm was eyeing the full rollout of the software by 2021. One or two modules will be launched this year, he said.“It is fully integrated software and solution wherein right from the quotation, underwriting, claim settlement, accounting, all together,” Hussain explained, noting that SGI Philippines was also set to introduce mobile application. “We already have this software in India. We want to replicate that sort of success story in the Philippines,” he added.The in-house software is seen to differentiate SGI Philippines from other local insurance firms, Hussain said.

Also, SGI Philippines chief says about how company hired numerous employees in the last six months to extract human resource.

“We want to reinforce our departments, including underwriting and lease,” he said.

Insurance Commission (IC) officials who attended the event were praising the capital infusion (P620) of SGI Philippines that brings the firm’s total paid-up capital to P1.33 billion as of end December 2019.

IC Deputy Commissioner Ferdinand Florendo, on behalf of Insurance Commissioner Dennis Funa, acknowledged that the firm is now one of the only 13 non-life insurance companies that have breached the P1.2-billion net worth in the country.

“The long history between our two countries also manifests itself in trust and confidence of Indian companies that invest in the Philippines. One of the significant examples of such is the establishment of SGI Philippines General Insurance,” Florendo said.

Mentioning about SGI Philippines, it’s a joint venture of Shriram Group including Piramal Group and Sanlam Group. Provides financial services, such as commercial vehicle financing, consumer and enterprise finance, retail stockbroking, and life insurance among others.

Source: Manila Times

Read Full Article here: https://www.manilatimes.net/2020/01/28/business/companies/sgi-philippines-to-launch-insurance-software/677851/

SGI Philippines Ensures Bounce in Capital to P1.33 Billion

Recently, the non-life insurer SGI Philippines General Insurance Co. Inc. implanted P620 million as added capital, matching it up with industry requirement leading the schedule. SGI Philippines has increased its capital by another P620 million in December last year, taking its total paid-up capital to P1.33 billion as of end-2019.
This makes SGI Philippines compliant with P1.3 billion net worth requirement for insurers due on December 2022, three years advance of schedule. P900 million was the requirement effective on Dec. 31, 2019.
“The management of SGI Philippines has decided to go ahead and infuse capital sufficient enough to be compliant with 2022, in the year 2019 itself. This is our spirit of commitment beyond compliance,” SGI Philippines president and chief executive officer Farhat Hussain said in his speech.
For establishing business in the country, new players need to have P1 billion in paid-up capital under Republic Act 10607 or the Insurance Code.
There must be a net worth of at least P250 million by June 30, 2013, P550 million by Dec. 31, 2016, P900 million by Dec. 31, 2019, and P1.3 billion by Dec 31, 2022.
Jasmit Singh Gujral, executive vice chairman of Shriram General Insurance Co. Ltd., one of SGI’s parent companies, said ”this makes the company the number one non-life insurance player in the Philippines in terms of paid-up capital”.
Also said the infusion of capital ahead of schedule was SGI’s statement of commitment to the Philippine market. “When we were supposed to be infusing capital of P900 million, we decided, let’s not split into stages, let us show the commitment to the Philippines’ insurance industry,” Gujral told reporters in an interview. This also shows the company’s confidence in the Philippine economy, which has been growing as one of the fastest among its peers.
“It’s not that we were looking for profit on the year one or the next quarter, we were looking at the long term. The Philippines has a great economy, it’s doing among the best in the world in terms of growth rates,” the company official said.
With the infusion of additional capital, Gujral said SGI Philippines is expecting to see a 500-percent growth in its premium income annually for the next five years. “Because the current premium size that we have (now) is very small, we’ll be growing around 500 percent every year in the next five years,” he said.

Gujral said there is vast opportunity for growth in the country considering the low penetration rate of the insurance industry.
SGI Philippines is a joint venture of Shriram Group, an Indian financial services conglomerate; Piramal Group, a diversified conglomerate from India; and Sanlam Group, a financial services group in South Africa.
Aside from the non-life insurance business, Gujral said Shriram Group is also looking for opportunities to invest in finance companies, distribution channels of financial and insurance products, manufacturing firms, and startups.

News Source: Philstar

Read Full Article here: https://www.philstar.com/business/2020/01/27/1987965/sgi-philippines-hikes-capital-p133-billion

The common Car Insurance mistakes you should avoid!

Car insurance is like a protective layer that assures complete safety whatever the situation is. You are having a car, but not car insurance policy this may hurt your pocket badly.

avoid car insurance mistakes

 

  • Therefore, it is important to buy a car insurance policy to ensure reimbursement in case of an accident happens. Car insurance is beneficial in many ways as it helps in minimizing premium at the time renewal. Also, it helps in getting an instant claim from the insurance company whenever required. As a car owner, securing it with a car insurance policy in the Philippines is important as well as mandatory. It provides financial security against accidents, theft and other damages from calamities.
  • Still, there are people who don’t know the worth of car insurance and make common mistakes every time. Following are some of the mistakes you always should avoid –
  • They don’t prefer online buying – Different people have different opinions about buying car insurance from mediums, i.e. offline or online. But buying car insurance online is a better option as it is quite convenient and beneficial. Online buying helps you explore more features and lets you take the time to learn more about car insurance. Therefore, buy car insurance online is good for you and for your family. Finding better car insurance coverage is one of the keys for detailed insurance services. Remember that uncertainty can hit you up any time that may be a natural disaster or man-made. On the SGI Philippines website you can compare the price of car insurance based on several parameters. You should further understand how motor insurance policy works. You can register and create a free quote online. But, most of the people don’t understand the worth of an online facility to buy car insurance. You can find various features, i.e. roadside assistance, towing service, and other related vehicle support.
  • Cheap service is the best service – We understand money is the main concern of many people while buying car insurance. And, this is how they chose the cheapest coverage for their car safety. Somehow cheap car insurance cover does not help in the overall security. You should opt for the comprehensive coverage as well as some add-ons that suits your car safety requirement. This may be a bit expensive, but it will give the ultimate protection. Therefore, get rid of this myth ‘cheaper is better’. When it comes to buying car insurance policies, people end up searching for the lowest car insurance premium. And, here they make a mistake while choosing car insurance based on the money factor. What matters the most is reliability and types of coverage they are offering. The car insurance policy should cover all major risk
  • Not being transparent to the Insurer – While buying car insurance you have to be transparent to the insurance company. If you are not involved in an accident in the past can help you get lower premiums for your vehicle insurance. And, if you hide this from the insurer you are definitely missing the opportunity. We provide our policyholders with the best comprehensive car insurance policies in the Philippines. You can’t get every benefit if you withhold information that are pertinent in determining the car insurance policy.
  • The missed payment – First and foremost, a missed car insurance payments lead to cancellation of the insurance policy. While dropping your car insurance policy may result in a considerable increase in premium rates with the next insurance company you opt. This can make you a high-risk client for the insurance company that means you have to deal with high rates and arrangements.
  • Conclusively, if you want a peaceful drive you have to avoid these mistakes while buying car insurance. Go to the insurance company that provides flexible and easy to avail payment terms. As a policyholder be updated, honest, and knowledgeable. Ask more questions to the insurer to clarify the confusions if any. Therefore, buy car insurance without any hassle and with complete peace by avoiding mistakes.

This is Why Buying Personal Accident Insurance is Beneficial

This is Why Buying Personal Accident Insurance is Beneficial

Nobody wants to get involved in accidents or any other unknown mishaps. It is unfortunate if you face such a situation and the worst thing is, you don’t have insurance cover for bodily injury or accidental death. The majority of people don’t understand the importance of buying personal accident insurance. One of the reasons is people are unaware of such insurance cover. They only know about two wheeler or car insurance due to the mandatory factor. Most of the people don’t give serious thought about personal accident insurance as they think life insurance is same as personal accident insurance for body safety. Life insurance demands heavy premium whereas personal accident insurance is less expensive and depend on the types of coverage. Different types of insurance covers have different key benefits and features accordingly.

personal accident insurance buying benefits

What is personal accident insurance?

Personal accident insurance is a type of insurance cover that financially assists a person in case of bodily injury. It’s like an agreement between an insurance company and an insured. In case of any mishappenings, the insurer will provide financial compensation for death or bodily injury, whether partial or permanent. In case there is an injury due to an accident that requires immediate treatment, the policy ensures coverage for the costs of this case.  Accidental Death, Permanent Total Disability, Permanent Partial Disability, Temporary Total Disability, Transportation of Mortal Remains, Children‘s Education Benefit are the coverage types you can avail for your personal safety and security. Personal accident insurance as the name suggests it saves you from injury caused due to fall or collision, road or plane accident, gas cylinder burst and others.

Following are the key benefits of personal accident insurance for you –

Provide Financial Assistance: There are several key benefits of buying personal accident insurance you can have. Insurance covers are there to provide financial assistance in case of an accident or other incidents. Life is unpredictable you can’t even say what can happen in the very next second. Imagine you are walking on street and suddenly a car hits you. And, you are not financially so strong. There may be two situations in case if you are having personal accident insurance cover or don’t have. In the first situation, you will be worry-less because of the insurance company going to reimburse the cost of treatment. But, in second case you will feel unlucky because you are going to pay from your pocket which is not even sufficient.

Covers for accidental death: Don’t get confused with term death it can be natural as well as accidental and personal accident insurance cover the accidental death. In this situation, the insured nominee gets 100% of the sum insured as per the plan offered. Keep a note that compensation is only available if accidental death occurs during the policy tenure. That’s the reason personal accident insurance is a good option for you to bring up a prosperous life for insured and family members.

Covers permanent total disability: In case of permanent total disability, the insurer provides 100% sum insured to the injured insured. If insured person meets with an accident that causes a permanent total disability within 12 months from the date of the accident he or she will be reimbursed as per the company norms. Permanent total disability includes injury of an arm at the shoulder joint, an arm above the elbow joint, a hand at the wrist, a thumb, index finger, leg above mid-thigh, leg up to beneath the knee and other injuries. There are several plans available that can facilitate you with appropriate compensation.

Covers Temporary Total Disability: When a loss occurs due to an injury during the policy period in which he or she is unable to perform their normal work and duties for some time. In such a case, the insurance company provides weekly benefits as per the norms of policy.

Conclusively, personal accident insurance act as your personal safety shield to help in case of accidental death and bodily injury. Therefore, buying personal accident insurance is a wise decision ever you should have.