The Philippine outfit of non-life Spanish insurer MAPFRE has fulfilled the minimum net worth requirement set by the Insurance Commission after raising its paid-up capital to PHP900m ($17.6m).
Existing domestic life or non-life insurers in the Philippines are required to have a paid-up capital of at least PHP550m by December 2016, PHP900m by December 2019 and PHP1.3bn by December 2022 under the amended insurance code.
However, new entrants to the Philippines’ insurance sector must have PHP1bn in paid-up capital.
This regulation has led to several insurers exiting the market as they are unable to meet the minimum net worth requirement.
At the end of 2018, only 85 insurance companies were left in the market after 15 direct insurers shut down in the past five years according to the National Reinsurance Corp of the Philippines.
Recently, the Armed Forces and Police General Insurance Corp voluntarily surrendered its insurer's licence and applied for a servicing licence.
As the deadline for meeting the regulatory requirements looms closer, more domestic insurers are expected to make announcements on this matter.