Philippine non-life insurers must apply new catastrophe rates by April 2022
The cession of facility rates will be based on a maximum limit per risk.
All non-life insurers in the Philippines must implement new rates and rating structures for their catastrophe risk policies by April 2022, according to the country’s Insurance Commission (IC).
In a circular order dated 12 April, IC Commissioner Dennis Funa said that the sector must adopt new rates and help build the Philippine Catastrophe Insurance Facility (PCIF). It will hold a consultation to discuss the new premium rates.
In addition, non-life insurers must appoint their authorized representatives to the PCIF-Technical Working Group within fifteen days of the release of the order, to ensure the inclusive process for drawing up the structure, governance and implementation details of the PCIF.
The surrendering of the right to set rates for the facility shall be based on a “reasonable” percentage and maximum limit per risk/per policy, agreed upon by the industry through the Philippine Insurers and Reinsurers Association, the order said.
The cession shall commence no later than 1 April 2022.