Insurance Commission asked to stop increase in catastrophe premium rates

Insurance Commission building | PHOTO: insurance.gov.ph

MANILA, Philippines — AGRI party-list Rep. Wilbert Lee  is asking the Insurance commission (IC) to totally stop the increase in minimum catastrophe insurance premium rates, to help Filipinos cope with rising prices of basic goods.

In a statement on Monday, Lee said that the IC should have held public consultations before implementing IC Circular Letter No. 2022-34 — which seeks an increase in the insurance premium rates for earthquake, typhoon and flood — and not after crafting the circular.

Lee said the circular was supposed to be implemented on January 1 this year.  The IC, however,  suspended the premium increase while public consultations take place.

“The proper forum to hold discussions on this matter is during our inquiry,” Lee said, referring to his House Resolution (HR) No. 632 which seeks an investigation on the premium increase.

“The IC had that opportunity before—to consult the public before coming up with an abrupt policy that will aggravate the prices of basic commodities—bakit hindi nila ginawa? Yun ang kailangan muna nilang ipaliwanag (why didn’t they do that?  That is what they have to explain),” he added.

HR No. 632 will be discussed during the House committee on banks and financial intermediaries’ hearing on Tuesday.

Lee claimed that IC Commissioner Dennis Funa stated that there is a need to adjust premium rates since insurance firms are incurring losses.

But the lawmaker said that if insurance firms are losing income, the companies should come out in the open and show their records.(With reports from Kimberly Albaño, trainee)

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