Presentation On Insurance Company

1. Insured Company

2. LIFE INSURANCE
A life insurance policy is a contract with
an insurance company. In exchange for premiums
(payments), the insurance company provides a lump-
sum payment, known as a death benefit, to beneficiaries
in the event of the insured's death.

3. LIST OF INSURANCE COMPANIES WHOSE
CERTIFICATES OF AUTHORITY WERE EXTENDED FOR
LICENSE YEAR 2014-2015 As of 15 May 2015
 Beneficial Life lnsurance Company, lnc
 BF Life lnsurance Corporation
 BPI-Philam Life Assurance Corporation
 CAP Life lnsurance Corporation
 Caritas Life I nsurance Corporation
 Cooperative lnsurance System of the Philippines
 Country Bankers Life lnsurance Corporation
 First Life FinancialCompany, lnc.
 Fortune Life lnsurance Company, lnc.
 FWD Life lnsurance Corporation
 Generali Pilipinas Life Assurance Company, lnc.
 lnsular Life Assurance Company, Ltd.,
 The Manila Bankers Life lnsurance Corporation

4.  Manufacturers Life lnsurance Company (Phils.), lnc., The
Manulife Chinaban k Life Assurance Corporation
 Philam Equitable Life Assurance Company, lnc.
 Philippine AXA Life lnsurance Corporation
 Philippines lnternational Life lnsurance Company, lnc.
 Philippine Life Financial Assurance Corporation
 Philippine Prudential Life lnsurance Company, lnc.
 Pioneer Life lnc.
 PNB Life lnsurance, lnc.
 Pru Life lnsurance Corporation of U.K.
 Sun Life Grepa Financial, lnc.
 Sun Life of Canada (Philippines), lnc.
 United Coconut Planters Life Assurance Corporation
 United Life Assurance Corporation

5. NON-LIFE INSURANCE
It is basically an insurance policy to protect
an individual against losses and damages other
than those covered by Life insurance.

6. Coverage:
The coverage period for most non-life insurance
policies and plans is usually one year, whereby premiums
are normally paid on a one time basis. The risks that are
covered by non-life insurance is property loss (stolen car
or burnt house), liability arising from damage caused by
an individual to a third party, accidental death or injury.

7. LIST OF INSURANCE COMPANIES WHOSE CERTIFICATES OF
AUTHORITY WERE EXTENDED FOR LICENSE YEAR 2014-2015
(As of 15 May 2015)
 AFP General lnsurance Corporation
 AIG Philippines lnsurance, lnc.
(Formerly: Chartis Phils. lnsurance lnc. name change effec. 13 Dec. 2012)
 Alliedbankers I nsu rance Corporation
 Alpha lnsurance and Surety Company, Inc
 Asia lnsurance (Philippines) Corporation (Formerly: Asia Traders lnsurance
Corporation - name change effec. 23 June 2004)
 Asia United lnsurance, lnc.
 BF General lnsurance Company, lnc.
 BPI/MS lnsurance Corporation
 Bankers Assurance Corporation
 Blue Cross lnsurance, Inc.
 CARD Pioneer Microinsurance lnc. (Formerly: Pioneer Asia lnsurance
Corporation - name changed efiec. 13 Sept. 2013)
 Centennial Guarantee Assurance Corporation
 Charter Ping An lnsurance Corporation
 Cibeles lnsurance Corporation
 Commonwealth lnsurance Company
 Country Bankers lnsurance Corporation

8.  Corporate Guarantee and lnsurance Company, lnc.
 Empire lnsurance Company
 Far Eastern Surety & lnsurance Company, lnc.
 FLT Prime lnsurance Corporation
(Formerly: First Le@nto-Taisho lnsurance Corp. - name changed effec. 11
May 2005)
 First lntegrated Bonding & lnsurance Co., lnc.
 First Nationwide Assurance Corporation,
 The Fortune General lnsurance Corporation
 FPG lnsurance Co., lnc.
(Formerly: Federal Phoenix Assurarce Company, lnc. - name changed
effec. 18 Februaty 2015)
 lnsurance Company of North America
 lntra Strata Assurance Corporation
 Investors Assurance Corporation
 Liberty Insurance Corporation
 MAA General Assurance Philippines, lnc.
 Malayan lnsurance Company, lnc.
 Manila Surety and Fidelity Company, lnc.
 Mapfre lnsular lnsurance Corporation

9.  Mercantile lnsurance Company, lnc.
 Meridian Assurance Corporation
 Metropolitan lnsurance Company, lnc.
 Milestone Guaranty and Assurance Corporation
 New lndia Assurance Company, Ltd.,
 The Northwest lnsurance & Surety Company, lnc.
 Oriental Assurance Corporation
 Pacific Union lnsurance CompANY
 People's General lnsurance Corporation
 Perla Compaffia de Seguros, lnc.
 Petrogen Insurance Corporation
 PGA Sompo Japan lnsurance, lnc.
 Philippine British Assurance Company, lnc.
 Philippine Fire and Marine lnsurance Corporation
 Philippines First lnsurance Company, lnc.
 Pioneer lnsurance and Surety Corporation
 Pioneer lntercontinental lnsurance Corporation
 Plaridel Surety and lnsurance Company

10.  PNB General lnsurers Company, lnc.
 Premier lnsurance & Surety Corporation,
 The Prudential Guarantee and Assurance lnc.
 QBE Seaboard lnsurance Philippines, lnc.
(Formerly: QBE lnsurance (Philippines), lnc- - name changed eftec. 27
December 2013)
 Reliance Surety and lnsurance Company, lnc.
 Republic Surety and lnsurance Company, lnc.
 SGI Philippines General lnsurance Company, lnc.
(Formerly: Monarch lnsurance Company, lnc. - name changed effec. 26
May 2014)
 Solid Guaranty, lnc.
 The Standard lnsurance Company, lnc.
 Starr lnternational lnsurance Philippines Branch
 Sterling lnsurance Company, lnc.
 Stronghold lnsurance Company, lnc.
 Travellers lnsurance & Surety Corporation
 UCPB General lnsurance Company, lnc.
 United lnsurance Company, lnc.
 Visayan Surety and lnsurance Corporation
 Western Guaranty Corporation

11. FUNCTIONS OF INSURANCE
Primary Functions:
 Insurance provides certainly:
Insurance provides certainly of payment at uncertainty
of loss. The uncertainty of loss can be reduced by better
planning and administration.
 Insurance provides protection:
The main function of the insurance is to provide
protection against probable chances of loss.

12.  Risk-Sharing:
The risk is sharing in ancient time was done
only at the time of damage or death but today
on the basis of probability of risk, the share
obtained from each and every insured in the
shape of premium without which protection is
not guaranteed by the insurer.

13. Secondary Functions:
1. Prevention of Loss - The insurance joins hands with
those institutions which are engaged in preventing the
losses of the society.
2. Improves Efficiency - The insurance eliminates
worries and miseries of losses at death and destruction
of property.
3. It helps Economic Progress -By protecting the
society from huge losses of damage, destruction and
death, provides an opportunity to develop to those larger
industries which have more risks in their setting up.

14. BANCASSURANCE
 the partnership or relationship between a bank and an
insurance company whereby the insurance company
uses the bank sales channel in order to sell insurance
products.

15.  also known as cross-selling, is defined as the
presentation and sale to bank customers by an
insurance company of its insurance products within
the premises of the head office of such banks duly
licensed by the Bangko Sentral ng Pilipinas (BSP or
Philippine Central Bank)

16. Amended Insurance Code of the Philippines
Institutionalizes Bancassurance
On 15 August 2013, the President of the Philippines
signed into law Republic Act No. 10607 or the revised
Insurance Code of the Philippines (RA 10607). RA 10607,
which amends the 38-year-old Insurance Code under
Presidential Decree No. 612, seeks to strengthen the
Philippine insurance industry and re-align Philippine law
with global developments in the insurance sector.

17. IMPACT ON THE INSURANCE
SECTOR
 All financial institutions supervised by the Insurance Commission
(IC), including insurers/insurance companies, agents, and brokers
(collectively, the Supervised Entities), are subject to the new
provisions of RA 10607, including those relating to bancassurance.
 At present, the BSP for its part is revising its cross-selling regulations
applicable to banks. Proposed amendments to current BSP regulations
are expected to grant authority to commercial and thrift banks to
engage in cross-selling, in addition to universal banks and expanded
commercial banks which were presently allowed under BSP rules.

18. NEW BANCASSURANCE
PROVISIONS
Amendments relating to bancassurance which are brought about by RA
10607 include the following:
• To engage in a bancassurance arrangement, a bank is not required
anymore to have equity ownership of the insurance company.
• All bancassurance products, whether life or non-life, are required to
be issued or delivered in the form previously approved by the Insurance
Commission.
• Personnel tasked to present and sell insurance productswithin the
bank premises must be duly licensed by the Insurance Commission. Such
personnel will also be subject to the rules and regulations of RA 10607 to
be promulgated by the Insurance Commission and the BSP.

19. COMPLIANCE:
To comply with the new provisions on bancassurance, Supervised
Entities may consider taking the following steps:
• Review carefully and more in-depth the bancassurance provisions ofRA
10607 and further IC regulations/issuances to be issued on the matter;
• Consider the new bancassurance provisions, review and reconsider their
current policies and practices applicable to cross-selling, in order to comply
with the recent law;
• Possibly liaise with relevant IC personnel (in particular, the Regulation,
Enforcement and Prosecution Division) to ensure that their policies/practices
meet internal rules, policies, and practices of the IC; and
• Monitor the progress and eventual issuance of the rules and regulations to
be promulgated by the Insurance Commission and the BSP, specifically with
respect to bancassurance, to ensure timely and effective compliance.

20. NEW RULES OF BANCASSURANCE
 Under the said Rules, the selling of insurance products,
including variable life insurance products, within the premises of
a bank is only allowed after the Insurance Commission (IC) has
approved the bancassurance agreement entered into by and
between the insurance company and the bank
 In order to differentiate insurance products from bank products,
the regulation requires that the portion of the bank premises
where bancassurance activities are conducted must be distinct
and clearly marked off against areas where bank products are
sold.
 The regulator also said: “The IC will not require bank employees
to obtain a licence as an insurance agent as such task is merely
incidental to their duties as bank employees.”

21. INVESTMENT
INSURANCE FUNDS

22. LIFE INSURANCE
 Total investments placed by life insurance companies
comprised 76.41% of total assets of the sector or Php364.05
Billion, 11.17% more than the investments in 2009.
Domestic companies and foreign companies accounted for
35.89% and 64.11% of the amount respectively.
 As in the past years, bonds remained the most popular with
61.22% of the total investments in 2010. This is followed by
stocks with 10.60%, Policy Loans with 8.35%, collateral
loans with 5.98%, Fixed deposits with 3.53% , Real Estate
with 3.50% and other invested assets with 6.82%.

24.  Investments in bonds rose by 10.84% while
investments in stocks increased by 20.29%. A
significant increase of 40.81% was noted in fixed
deposit due to the 139.63% more placements made by
domestic companies in 2010.
 Total investments in long term government bonds
and government securities allocated for the 91.98% of
the total investments in bonds of the life sector.
Treasury notes which took 81.96% of the total
government bonds increased by 20.22% during the
year under review.

26. NON-LIFE INSURANCE
 The total invested assets in 2010 grew to Php 51.36
Billion, 13.52% more than the Php45.24 Billion
investments in 2009. The domestic and foreign
companies contributed additional 5.54% and 60.12%
respectively, to their previously invested assets. As in
past years, bonds shared the biggest 45.56%, followed
by fixed deposits of 20.29% and stocks of 17.62% of
the total investments placed by the non-life sector.

27. Data shows that all investments except mortgage loans
increased in 2010 by as much as 51.00

28.  Total investments in government securities (long term
and shortterm) totaled Php24.44 Billion, 30.00% more
than the previous year’s Php18.80 Billion. The
amount was 95.81% of the total investments in bonds
which remained the most popular among other
placements made by the non-life sector.

30. INSURANCE
COMMISSION
 The Insurance Commission is a government agency
under the Department of Finance. The Commission
supervises and regulates the operations of life and
non-life companies, mutual benefit associations, and
trusts for charitable uses. It issues licenses to insurance
agents, general agents, resident agents, underwriters,
brokers, adjusters and actuaries. It has also the
authority to suspend or revoke such licenses.

31. MISSION
We are committed to protect the interest and
welfare of the insuring public and to develop
and strengthen the insurance industry
VISION
By 2020, as Regulator, we shall provide an
opportunity for every Filipino to secure insurance
protection and we shall observe practices at par
with regional and global standards.

32. ORGANIZATIONAL STRUCTURE

33. OBJECTIVES:
 To promote growth and financial stability of insurance
companies
 To professionalize insurance services and develop
insurance consciousness among the general populace
 To establish a sound national insurance market, and
 To safeguard the rights and interest of the insuring
people.

34. INSURANCE CODE
(Decree No. 612)

35. Chapter 1: The Contract of Insurance
Title 1: What may be insured
Title 2: Parties of the contract
Title 3: Insurable Interest
Title 4: Concealment
Title 5: Representation
Title 6: The Policy
Title 7: Warranties
Title 8: Premium
Title 9: Loss
Title 10: Notice of loss
Title 11: Double Insurance
Title 12: Reinsurance

36. Chapter 2: Classes of Insurance
Title 1: Marine Insurance
Title 2: Fire Insurance
Title 3: Casualty Insurance
Title 4: Suretyship
Title 5: Life Insurance
Title 6: MicroInsurance

37. Chapter 3: The Business of Insurance
Title 1: Insurance Companies, Organization, Capitalization
and authorization
Title 2: Solvency
Title 3: Asset
Title 4: Investments
Title 5: Reserves
Title 6: Limit of Single Risk
Title 7: Reinsurance Transactions
Title 8: Annual Statement
Title 9: Policy Forms
Title 10: Variable Contracts

38. Title 11: Claims Settlement
Title 12: Examination of companies
Title 13: Suspension or revocation of authority
Title 14: Appointment of conservator
Title 15: Proceedings upon insolvency
Title 16: Consolidation and merger of insurance
company
Title 17: Mutualisation of stock life insurance companies
Title 18: Withdrawal of foreign Insurance Companies
Title 19: Professional Reinsurers
Title 20: Holding Companies

39. Chapter 4 : Sales Agencies and
Technical Services
Title 1: Insurance Agents and Insurance Brokers
Title 2: Reinsurance Brokers
Title 3: Resident Agents
Title 4: Non-Life Company Underwriter
Title 5: Adjusters
Title 7: Rating Organization and Rate Making
Title 8: Provision common to agents, brokers and
adjusters
Title 9: Bancassurance

40. Chapter 5: Security Fund
Chapter 6: Compulsory Motor Vehicle Liability
Insurance
Chapter 7: Mutual Benefit Associations and trusts for
charitable uses
Title 1: Mutual Benefit Associations
Title 2:Trusts for charitable uses

41. Chapter 8: Trust Business in General
Chapter 9: Registration, responsibilities and oversight
of self-regulatory organization
Chapter 10: The Insurance Commissioner
Title 1: Administrative and Adjudicatory powers
Title 2: Fees and other sources of funds

42. Types of Insurers in
Philippines

43. 1. Government
 The Government Services Insurance System (GSIS)
which extends life insurance to all government
employees, and various general insurance products to
government installations and their interests; and the
Social Security System (SSS) fall within this category.

44. 2. Private
Two main classifications of private companies:
 Proprietary Insurers
 organized and operated by stockholders mainly for
profit. Most of companies in the Philippines fall within
this classification.

45.  Cooperative Insurers
 Operated to provide insurance at cost to members. The
insured's are the owners. When a profit is made, part is
given back to the insured's as "policy dividends" and the
balance is used to build up the surplus.

46. Definition and Kinds of
Insurance

47. Life Insurance
A policy of life insurance is not a mere contract of
indemnity, but is a contract to pay the beneficiary a
certain sun of money in the event of death, provided
certain conditions are performed by the insured.

48. Non-Life Insurance
Three (3) main classification
 Property Insurance
 Marine Insurance
 Casualty Insurance

49. Property Insurance
provide protection against more risks to property
such as the special perils of earthquake, flood, typhoon,
riot and strike, falling aircraft, and impact of vehicles are
written usually in conjunction which fire coverage.

50. Marine Insurance
this includes cargo, hull freight, and liability of
the ship owner to the crew, passengers, or property of
the third parties. Inland marine, covering shipment of
goods by trucks, railways, or ferry, is included in this
classification.

51. Casualty Insurance
This is the broadest classification which includes
those lines of business that do not fall under Fire or
Marine such as motor car, workmen's compensation,
personal accident, crime insurance, liability insurance
etc.

52. Motor Insurance
Any kind of insurance pertaining to the
ownership, maintenance, or use of motor vehicle may be
referred to, in general, as Automobile Insurance. It also
refers to insurance on auto home, motor cycles, scooters,
mobiles, buses, road building equipment, trailers, etc.
Automobile Insurance required in the business of
selling, repairing, servicing motor vehicles comes in the
category.

53. Other Insurances
Personal Accident Insurance
A particular type of insurance which provides
benefits/indemnity in case of losses to the person
or physical well-being of an insured, individual
arising out of accident.

54. Direct Losses
Accidental loss of life or
death which results out of
injuries sustained by the
individual and accidental
loss sight or eyes
Indirect Losses
The individual may be
disabled for some time,
either totally or partially.
He could be confined in
the hospital or bed-ridden
at the house in which case
he is unable to engage in
his usual means of
livelihood

55. Health Insurance
A type of insurance coverage that pays for medical
and surgical expenses that are incurred by the insured.
Health insurance can either reimbursed the insured for
expenses incurred from illness or injury or pay the care
provider directly. Often included in employer benefit
packages as a means of enticing quality employees.