2017 PIRA FACT BOOK

IMPORTANT FACTS AND FIGURES ABOUT THE PHILIPPINES

2017 PIRA FACT BOOK

AND ITS NON-LIFE INSURANCE INDUSTRY

PHILIPPINE INSURERS AND REINSURERS ASSOCIATION (PIRA)

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The 2017 PIRA Fact Book is published by the Philippine Insurers and Reinsurers Association (PIRA) with offices on the 6th floor of ALGO Center, LP Leviste street, Salcedo Village, Makati City, Philippines.

The articles written herein were culled from published sources, both in print and on the Internet. These sources are, in no particularly order, include the Philippine Daily Inquirer, the Philippine Star, Businessworld, Business Mirror, Rappler, Manila Times, Manila StandardToday, Malaya Business Insight, and the Insurance Commission website.

PIRA expresses its utmost gratitude to the writers and publishers of these media outfits for their support to the non-life insurance industry.

PIRA has taken all care and precaution in putting together these articles to come up with a bird's eye view of the industry and put it in this book.

Sources of information and photographs are all from the public domain, unless otherwise stated. Any error, in fact or attribution, is never intentional.

Editors: Rogelio J. Concepcion and Junephrey M. Ocampo Contributing Writer: Xavier Gregorio Book Designers: Junep Ocampo, Danilo Hernando and Noel Uaje Produced by RightMedia Public Relations for PIRA. Copyright Š 2017 All rights reserved.

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Contents

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8 Chairman's Note: Empathy And Why It Matters 10 Men and Women Of PIRA 12 Growing Amidst Uncertainty 16 Build, Build, Build!

20 The Philippines' TRAIN To Progress 26 Are We Financially Ready For Disasters?

32 Making Insurance Affordable, Accessible To Poor Filipinos 36 New Commissioner Named For IC 40 DOF to IC: Sustain Pro-People Reforms 44 IC Urge Insurers: Have Terrorism Insurance 48 Ready to Grow or Ready to Go? 54 Insurers Tackle Global Issues 60 Improved Risk-Based Capital System 64 PIRA Working On Revitalized MCIS 68 Catastrophe Bond Still In The Works 72 Fight for Lower Taxes Continues 74 Higher Passenger Insurance Urged 76 Future Actuaries Get To Know PIRA 80 East Asian Insurance Congress Returning To Manila 82 Appendix 2017 PIRA FACT BOOK

Our Vision PIRA is the institutional leader of a strong, unified and influential non-life insurance industry in the Philippines that ensures the industry's long-term growth and sustainability.

Our Mission 1. To promote the general welfare and common interests of non-life insurance, surety, and professional reinsurance companies doing business in the Philippines through ways and means consistent with the law.

2. To propagate and spread the concepts, principles and benefits of the non-life insurance and surety business, and to this end, conduct educational campaigns, training seminars, workshops, conferences and lectures.

3. To serve as a forum for the exchange of information on matters involving or affecting the non-life insurance, surety and reinsurance industries, both local and international.

And 4. To foster unity, goodwill and cooperation among its members in order that collective actions or pursuits in all matters of common interest to them may be facilitated.

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The Men &Women of PIRA

Michael F. Rellosa Deputy Chairman

Augusto P.P. Hidalgo Augusto Hidalgo

Trustee Rebecca B. Dela Cruz

Chairman Chairman

Corporate Secretary

Augusto P. Hidalgo

Trustee

Chairman

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General Manager: ROGELIO J. CONCEPCION Executive Assistants: MADELAINE P. TERCERO, MARILOU C. SERRANO and SHIRLEY F. DELA CRUZ Accounting Manager: AGNES L. SILAYA Accounting: CIELITO L. MONCAL AND ADELFA B. SARZUELA

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Arturo B. Reyes

Andrew Dee Co

Trustee

Trustee

Joselito C. Bantayan Trustee

Joli Co Wu Trustee

David P. Mercado, Jr.

Armand M. Pesigan Trustee

Treasurer

Member Services and Industry Support: ALEXANDER D. PABLO, RONALD C. CONCEPCION, JOSEFINO I. MONTECLARO, JR., and MANUELITO N. NIGOS Management Information Systems Support: JERRY L. GARCHITORENA, LARRY E. VIDAL, and GREGORIO M. BARRIOS, Office Administration and Records: SANTIAGO S. BANGLOY, TERESITA F. MONTECLARO, and BENJAMIN I. BAMBA, JR.

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CHAIRMAN'S NOTE

Empathy and why it matters

By Augusto P. Hidalgo Chairman, Philippine Insurers and Reinsurers Association IN HIS ANNUAL LETTER to Berkshire Hathaway shareholders in 2015, business mogul Warren Buffett shares yet again more nuggets of wisdom for leaders across different industries. In this letter marking his golden anniversary with the conglomerate, which happens to include an insurance business, Buffett gives several bits of advice which weave together to form a well-written piece on empathy.

He speaks of, for example, a practice on how he has incentivized Berkshire Hathaway's Board of Directors to take on the perspective of their shareholders.

Buffett also talks of how CEOs must learn to empathize with VPs and managers by interacting with them in the way that they would like to be treated if their roles were reversed.

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While I find Buffett's narrative very compelling, I find that it is missing an essential piece which I hope to build on. I believe this often forgotten value of empathy should be expressed towards not only our colleagues but, perhaps more importantly, our customers.

It is human nature to wear our businessman hats when we do tasks or make decisions at work. With new major insurance regulations recently implemented in the Philippines, our roles as insurance businessmen were magnified further as we focused our efforts on how to adapt to these changes in order to keep our companies open.

But I believe that despite the many reponsibilites we have, there will always be room for us to show empathy, be it for the people we work with or the people we sell our business to. Hence, I would like to encourage you -- regardless of the role you hold in your organization -- to walk in the shoes of your customers, the ones who put their faith in you that you will do good on your promises. When making business decisions I invite you to not only ask if something will be profitable for your business but if it will ultimately, for instance, make a claims process easier for a client or make an insurance product more affordable for them.

This empathy for the insuring public has

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been the foundation of all the work your PIRA Board of Trustees has done in the past year. I would be happy to share with you examples of how we have shown this.

We have created an Advocacy Committee within the Board so we may focus on lobbying for proposals that will benefit the insuring public, such as lowering the excessive taxes on non-life insurance products. The discussions of our non-life insurance forum for 2017 will be on claims, from internal best practices across companies to how we can improve the claims processing experience of our customers. Also, at the East Asian Insurance Congress (EAIC) Conference in 2018, which PIRA is proud to organize and host in Manila, topics will be on how to manage disruptions and drive change. We want to encourage fruitful conversations among global insurers and reinsurers on what challenges our customers are facing today and how we, as sharers to their risk, can better address their needs.

Empathy in the workplace is something that not only Warren Buffett sees as truly valuable to Berkshire Hathaway's business.

Other firms around the world and from various sectors such as technology, consumer goods, and pharmaceuticals are seeing its importance as a hard business skill.

It is my ardent hope then that this culture of empathy -- of putting customers first, anticipating their needs, and learning how to address these needs -- would finally catch on in Philippine business and not just in the insurance industry. I do believe though that our industry, with our profound role in helping the public recover after losses, could be the champions for this cause and make empathy, in its most genuine sense, something that we breathe, live, and thrive on.

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Growing Amidst Uncertainty THE PHILIPPINES continues to be one of the most dynamic countries in the East Asia region, with sound economic fundamentals and a globally recognized competitive workforce.

Despite a weak external environment, growth in 2016 accelerated to 6.8 percent year-on-year from 5.9 percent in 2015 on the back of upbeat domestic demand.

The country’s economy is expected to remain a top regional performer with growth projected at 6.9 percent in 2017 and 2018.

Growth in recent years went hand-in-hand with job creation and poverty reduction.

The poverty rate declined from 10.5 percent in 2012 to 6.6 percent in 2015 by the $1.90 a day poverty line. Between

2012-2015, shared prosperity increased: the income of the bottom 40 percent grew much faster than the national average.

Specifically, the income of the bottom 20 percent grew at 16 percent while the average grew 6 percent. While urban and rural poverty declined, rural poverty remained nearly three times as high as in urban areas.

The strong performance of 2016, and continued policy commitment to the planned increase in public infrastructure spending, are expected to carry the economy’s growth momentum to 2018.

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SOLAR POWERED MALL -- The Robinsons Starmills Mall in San Fernando, Pampanga is now considered the biggest solar-powered mall in the world. With a 2.88-megawatt solar plant atop, the mall broke existing records on such a renewable energy generator installed for a shopping mall’s own consumption. The facility is seen to cut carbon dioxide emission by 2.25 million kilograms – comparable to the planting of 100,000 trees.

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Growth in capital investment is projected to be the economy’s primary growth engine and will be tied to the successful implementation of the administration’s infrastructure investment push.

Consumption is expected to be supported by the continued expansion in credit and sustained remittance growth.

As global demand recovers, exports are expected to rebound, but imports will expand further to fill the domestic capital goods requirements.

The new government has ushered a Philippine Development Plan 2017-2022.

It outlines the government’s medium-term policy priorities to achieve more inclusive growth.

The government is embarking on an ambitious reform agenda to deliver equitable tax reforms, enhance market competition, and improve the ease of doing business, while continuing to sustainably ramp up public investments in infrastructure and social services.

Crucial support is being extended to the agriculture sector where the most number of poor are. Emphasis is also given to peace and economic development in the largest province of Mindanao, which is the poorest region of the Philippines.

Experts expect the growing middle class, the boom in business process outsourcing, and the boost in infrastructure spending to sustain the country's economy.

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CULTURAL REVOLUTION IN GOVERNMENT -- Finance Secretary Carlos Dominguez tells a businessman's forum in Davao City that no less than a "cultural revolution" is needed to change how the government serves the people, particularly the business sector. He vowed to make maximum use of technology to do this in six years.

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COUNTRY OVERVIEW

The Philippines' growth story continues to be positive despite the negative publicity surrounding accusations of human-rights abuses in the drugs war. Mr. Duterte’s government needs to focus on implementation of spending plans just as much as generating revenue to pay for the infrastructure.

Eugenio Victorino Economist

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The country’s economic managers and Cabinet members responsible for the infrastructure program presented the Duterte administration’s ambitious infrastructure plan -- highimpact projects that will boost economic growth while also proposing to build new roads and mass transport systems that will solve the country’s traffic problems.

The government has allotted P 8.4 trillion for infra spending in President Duterte’s sixyear term. This year, the budgeted amount is equivalent to 5.4 percent of GDP, more than double the 2.6 percent average of the past six administrations over the last 50 years. In addition, the government aims to raise infra spending to 7.4 percent of GDP by 2022.

The Duterte administration’s infrastructure program is expected to provide many benefits to the country and the economy.

Among them are the following: 1) BOOST ECONOMIC GROWTH. The massive spending on infrastructure projects will spur economic activity. If the projects are executed properly, we see economic growth reaching eight to 10 percent in the medium to long term. These initiatives are expected to unlock bottlenecks, increase productivity and diversify economic growth across many industries while also stimulating growth in provinces.

2) JOB CREATION. The construction of large-scale infra projects and the resulting economic development from the initiatives will create millions of jobs for Filipinos nationwide.

3) Improved flow of goods. Better roads, railways, airports and sea ports will improve the flow of commodities and products not only within the country, but also to and from the country. This will result

Build!

Build!

Build! in lower transportation costs and increased competitiveness for many industries. Thus, improved infrastructure may aid the development of many industries such as manufacturing, agriculture and mining.

4) DEVELOPMENT OF TOURISM. The tourism industry will immensely benefit from better airports and roads, which should lead to increased investments in the sector.

5) REDUCTION OF TRAFFIC CONGESTION. Metro Manila is notorious for its congested cities and hour-long traffic jams. Various studies have shown that these cost billions of pesos for the economy. Better roads and improved mass transport will reduce travel times and result in higher productivity.

6) Decongestion of Metro Manila. Building green cities and urban centers outside

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Metro Manila will address overconcentration in the country’s capital. Such projects will decentralize and diversify economic development while also stimulating the economic expansion of other provinces.

One of the important initiatives proposed by some key members of the Cabinet is the plan to move national government offices out of Metro Manila. The most viable alternative seen by experts is the Clark Green City, which will be built to house a government district and an alternative urban center. Government offices such as MalacaĂąang, Senate, Congress, Supreme Court and other major government institutions may be transferred to Clark once the city is developed. Transportation Secretary Art Tugade said he is willing to be the first to relocate his entire department to Clark. We, thus, hope other government

offices will follow Secretary Tugade’s lead.

The plans for Clark Green City draw similarities to Putrajaya, a planned city in Malaysia which was designed to consolidate government offices in one location and decongest Kuala Lumpur.

Another example that comes to mind is Washington, DC in the US. The move is expected to significantly contribute to decongesting Metro Manila.

Studies have shown that about two to three million people will move out of Metro Manila when a new government district is built in Clark. Further, it will result in countryside development, particularly in the provinces of Pampanga and Bataan. Note that there are many infra projects that will be constructed in Clark and Subic, on top of an existing airport in Clark and a sea port in Subic. Thus, the development of

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urban centers in those areas will spur the economic development of Northern and Central Luzon. Also, building full-fledged urban centers in the countryside will diversify the geographic drivers of economic growth.

The construction of large-scale projects in the government’s infra program will need massive sources of funding. Without additional revenue generating measures, an increase in government spending for infrastructure will cause the budget deficit to breach three percent of GDP. Note that this is a key threshold which is monitored by credit rating agencies.

DUTERTENOMICS All these projects are expected to ramp up public infrastructure spending by a whopping P8.4 trillion.

How will we pay for P8.4 trillion? Can we really afford Dutertenomics?

With one year already gone and future tax revenues still left hanging in the balance, experts believe it’s time for the President take charge and champion Dutertenomics himself.

Otherwise, the infrastructure golden age his administration promises could turn out to be just a pipe dream.

Back in May, a Forbes magazine article went viral when it claimed that new loans from Japan and China, intended to fund part of Dutertenomics, will inevitably put the country into a “virtual debt bondage.”

However, it turns out that Official Development Assistance (ODA), which comes from foreign governments and multilateral institutions, is expected to fund only 15% of Dutertenomics.

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We also know from everyday experience that borrowing is not bad per se. For as long as interest rates are low, the grace and repayment periods are long, and the government exercises prudent debt management, these new loans won’t necessarily lead us to a debt crisis similar to what happened in the early 1980s.

A much larger part of Dutertenomics will be funded from taxes and PPPs. Hence, the issues surrounding these two other financing options deserve more of our attention.

Easily two-thirds or 66% of Dutertenomics’ P8.4 trillion budget is expected to be financed from tax revenues. This explains why the President’s economic managers are so intently campaigning for the tax reform measures to pass in Congress.

In total, the tax reform bill approved by the House is expected to raise P1.163 trillion of net revenues from 2018 to 2022.

However, this will cover just 14% of the P8.4 trillion budget for Dutertenomics.

What’s more, the House's version is expected to raise 8% lower revenues than what the finance department originally proposed.

The tax reform bill is now in the Senate, but many senators are reluctant to pass the measure as envisioned by the President’s economic managers. Experts say many of the lawmakers' qualms are understandable – they can't risk displeasing voters with the 2019 elections coming up.

Meanwhile, Public Works Secretary Mark Villar said the government wants to shift

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the conversation from the President's controversial war on drugs towards a spending spree on roads, rail and other projects that he said would usher a “Golden Age of Infrastructure” for the country.

of 140 countries on infrastructure.

“People want to talk about extra-judicial killings, but let’s talk about what’s really happening in this country, which is poised to boom,” Secretary Villar said.

Economist Eugenia Victorino, who is part of the Australia and New Zealand Banking Group in Singapore, said said the negative publicity brought by the bloody war on drugs has not completely discouraged investors from betting on the Philippines.

“If we succeed in this infrastructure program, Philippines will be a middle-class country and poverty will be half of what it is today,” he stressed.

The Philippines is considered one of the world’s fastest growing economies, yet it has long been been plagued by inadequate infrastructure. The World Economic Forum last year scored the Philippines 106th out

Villar said greater investment will help buoy an economic expansion that the experts expect to be around 6.1 percent annually through 2021.

"The Philippines' growth story continues to be positive despite the negative publicity surrounding accusations of human-rights abuses in the drugs war," she said. "Mr. Duterte’s government needs to focus on implementation of spending plans just as much as generating revenue to pay for the infrastructure.

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COUNTRY OVERVIEW

The Philippines' TRAIN to Progress The Department of Finance (DOF) has maintained that the proposed Tax Reform for Acceleration and Inclusion (TRAIN) Act will benefit 99 percent of Filipino households because of its proposed income tax cuts for salaried workers plus the unconditional cash transfers for the country’s poorest families.

The DOF also allayed fears over the supposedly adverse impact of the proposed higher taxes on petroleum products are “illusory” because its inflationary effect will actually be “minimal and temporary” in nature, according to Finance Undersecretary Karl Kendrick Chua.

“Rightly relieving the salaried working class of the inequitable tax burden does not imply that the reform will leave the poor and vulnerable dry,” said Chua in response to issues raised by some quarters against the tax reform bill.

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Chua said the targeted transfer program, which will benefit the bottom 50 percent of the population, is designed to provide immediate benefit to poor families to help them adjust to the fairer, simpler and more equitable tax system under TRAIN.

"Prosperity for the poor, however, will not be achieved through subsidies, exemptions, and freebies but from better health services, improved roads, faster and safer modes of transportation, improved access to quality education, among other social services that will make them more productive and improve their opportunities to get better jobs and accelerate their graduation out of poverty,” said Chua.

The additional revenues generated by the TRAIN, Chua said, would help support these pro-poor programs.

The Finance undersecretary noted that contrary to misinformed claims by some quarters, the impact on prices of expanding the value-added tax (VAT) base and adjusting fuel excise tax are ”only moderate and temporary. ”

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CAR SALES UP THIS YEAR DUE TO FEAR OF EXCISE TAXES NEXT YEAR The Philippine automotive industry is experiencing a historic growth in sales mainly brought by the news that prices of motor vehicles would considerably go up once the new excise taxes under TRAIN are implemented. This boom in car sales translates to higher production in the motor car line of non-life insurance companies in the country.

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"The TRAIN Act would ensure for the government a healthy and recurrent revenue flow.”

DOF Secretary Carlos Dominguez III As an example, he recalled that when crude oil increased by as much as 76 percent between January 2016 and January 2017, overall inflation was only at 2.7 percent.

The inflation rate increase was also moderate and temporary when the VAT was raised to 12 percent in 2005, and during the oil price shocks in 2011.

“Despite concerns by the industry at that time that higher taxes or higher prices could lead to lower economic growth and skyrocketing inflation, history shows us that we have weathered the shocks quite well, even when the economy was not in the best of shape,” Chua said.

In the case of the TRAIN, Chua said DOF estimates show that inflation will increase by 0.9 percentage points in the first year, which will taper off in the following years.

The Bangko Sentral ng Pilipinas (BSP) and the National Economic and Development Authority (NEDA) have even lower inflationspike estimates of 0.5 and 0.4 percentage points, respectively, Chua said .

“The DOF will be coordinating with different agencies, including the BSP and the Trade Department, to ensure that prices are in check and profiteering is mitigated. The BSP is in a strong position to curb excessive movements in inflation,” he said.

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As for claims that the TRAIN will make life easier for the rich at the expense of the poor, Chua said ” the opposite is true “as the bill will benefit salaried workers in the form of lower taxes, which will increase

their take home pay, and shift the burden to the rich who will be taxed at a higher rate of 35 percent from the current 32 percent.

“The Philippines cannot afford to just muddle through if it were to catch up with its more successful neighbors and realize its collective goal of eradicating extreme poverty,” Chua said. “At the core of the tax reform is the vision to eradicate poverty, reduce inequality, and bridge the Philippines towards the future.”

On proposals to merely improve tax collection, Chua noted that even if the Bureaus of Internal Revenue (BIR) and of Customs (BOC) were to become 100 percent efficient, they would still be unable to achieve their collection goals because the current tax system itself is riddled with loopholes and inherent deficiencies that bar the BIR and BOC from hitting, much less surpassing, their annual revenue targets.

As for the proposal to include a tax on sugar-sweetened beverages under TRAIN, Chua pointed out that this is a health measure, designed to reduce consumption of easily accessible yet unhealthy drinks that increase the risks of obesity and diabetes among Filipinos.

“The monthly maintenance for diabetes, for example, is around P5,000 to P60,000 per year. This is not affordable for 80 percent of the population,” he said. Moreover, “poor health traps households into poverty, reducing productivity and burdening families with medical expenses and giving up productive time to care for the sick,” Chua said.

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Meanwhile, the Insurance Commission (IC) is supporting the proposed TRAIN Act as it would make the system more financially inclusive and provide insurers the opportunity to cash in on the massive infrastructure build-up of the Duterte administration that will be partly funded by this tax reform package.

IC Commissioner Dennis B. Funa said the TRAIN would increase the disposable income of Filipinos and would enable them to purchase insurance products, helping to make them more financially secure in the long term.

“With the TRAIN ushering in President Duterte’s Golden Age of Infrastructure, insurance companies can provide fresh and additional revenue stream to fund infrastructure development. They can either buy infrastructure-related financial instruments such as corporate or PublicPrivate Partnership (PPP) bonds, or invest directly in the stocks of companies involved in infrastructure projects,” Commissioner Funa said.

He noted this upcoming boom in the infrastructure sector brought about by the congressional approval and subsequent implementation of TRAIN, could offer higher yields for insurance companies compared to equities and fixed-income securities.

“We are expecting that there will be a development and improvement of investment instruments and products including infrastructure-related financial instruments and projects. Thus, we are keeping an open mind in terms of approval of these investments,” he said.

Moreover, Atty/ Funa said the TRAIN, “which is characterized by low

rates and a broader tax base, will enable the public to allocate their resources to financial products such as insurance products.”

“Filipinos would enjoy more disposable income that will enable them to avail themselves of insurance products, be it micro insurance or regular, and consequently contribute to the improvement of financial inclusion in our country,” Commissioner Funa said.

This would, in turn, increase the insurance density or the average amount spent on insurance by each person in the country.

Finance Secretary Carlos Dominguez III has pointed out that the tax reform agenda being pushed by the Duterte administration seeks to end “decades of unjust taxation that polarized wealth rather than distributed it,” in proposing to shift the tax burden from the lower 99 percent of the country’s population to its wealthiest one percent.

Secretary Dominguez said the TRAIN Act would ensure for the government a “healthy and recurrent revenue flow” to enable it to spend big on infrastructure, education, health and other social services, which are the major elements for attaining inclusive growth.

Tax reform, according to Secretary Dominguez, is an indispensable component of the President’s broad economic strategy dubbed “DuterteNomics,” which aims to sustain a high growth rate of seven percent over the medium term.

Secretary Dominguez said the DOF would continue to hold dialogues with senators o explain to them the merits of the tax reform package.

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COUNTRY OVERVIEW

Are We Financially Ready For Disasters?

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The Philippines is located in a prime spot for trade and tourism, being blessed with a tropical climate, beautiful beaches and sceneries. But the country’s location also leaves it vulnerable to natural calamities.

With the country sitting in the Pacific Ring of Fire, earthquakes and volcanic eruptions —the same phenomena responsible for glorious mountains, rock formations and islands—are much more frequent compared to other regions in the world.

Typhoons also frequently visit the country.

In a year, an average of 20 tropical cyclones enter the Philippine Area of Responsibility.

Approximately 10 of those become typhoons, around eight of which make landfall, and around five will cause significant damage. Nature can deal the country double whammies too.

In October 2013, a magnitude-7.2 earthquake hit the Visayas region, leaving 222 dead, 976 injured, eight missing, and P2.25 billion in damages. Bohol took the worst hit, as the quake toppled several historical structures.

Just three weeks after the quake struck, Super Typhoon Yolanda pummeled through the Visayas region. With raging winds up to 315 km/h, the typhoon, known internationally as Haiyan, was one of the strongest on record and left 6,343 dead, 1,058 missing, and P145 billion in damages.

Leyte, the hardest hit by Haiyan, is still recovering to this date.

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But just recently, a magnitude-6.5 earthquake shook the province and wrecked P271 million in properties.

One would expect that with the frequency of natural disasters the Philippines faces yearly, Filipinos would be better prepared.

“Unfortunately, despite the regular occurrence of natural calamities in our country, it seems that we are often caught unprepared,” said Michael Rellosa, the deputy chairman of the Philippine Insurers and Reinsurers Association (PIRA).

In a lecture delivered at the Asian Institute of Management (AIM), Rellosa, who is also the president of Fortune General Insurance, says it all boils down to how funds are spent and accessed by local government units, and how government property is insured.

He explained that, typically, a government, in times of disasters, will first use government reserves and contingency funds. If it needs more money, it then uses contingent credit lines and post-disaster credit.

In the event of disasters of historic proportions, insurance proceeds, catastrophe bonds proceeds, and international donations will be the source of funding for relief, recovery, and reconstruction operations.

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However, the Philippines has a different approach. The first line of funding is the contingency fund, called the National Disaster Risk Reduction and Management (NDRRM) fund. The NDRRM fund for this year has been slashed in half from P38.9 billion to only P15.8 billion, and as of March 2017, only P5.77 billion remain as P10 billion was spent for relief and recovery operations in response to typhoons “Nona”,

“Ferdie”, “Lawin”, and “Nina”.

“One major problem with NDRRM funds is not just the shortage of funds but actually the use, or more specifically the non-usage of such funds,” Rellosa explained.

He discussed a 2015 Commission on Audit (COA) report which stated that more than P1 billion in disaster relief funds given to local governments were underutilized or misused.

“Some P595 million in disaster funds were disbursed only in November 2015 to the Local Water Utilities Administration, thus preventing timely implementation of postdisaster projects,” he said.

According to the COA report, many local government units in Metro Manila did not allocate millions of pesos from the NDRRM fund to their local risk reduction and management funds. At least P128 million of the Quick Response Funds given to the Department of National Defense (DND) were not used for quick response, but for repairs of DND facilities.

In addition to the lack of funding and the use of whatever funds left for purposes not related to disaster prevention and response, accessing the NDRRM funds is also difficult.

“It seems our government has made it too hard to access these funds that our government units find it impossible to put the funds to use in the most effective and efficient way you know,” Rellosa said.

He said that problems in accessing the NDRRM fund is due to the lengthy approval process for the funds to be released, which delays recovery and reconstruction projects, and the lack of clear criteria or

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rules to get funding approved. “I was told that in many areas, the approval and release of NDRRM Funds can take from months to years,” Rellosa lamented.

After the measly and difficult-to-access NDRRM fund is depleted, the Philippine government can turn to the World Bank for a $500 million loan, especially in the aftermath of an extremely destructive disaster.

victims of natural disasters.

Rellosa showed that these systems in the country are far cries from the systems in place in Turkey, Mexico, and the Caribbean.

Turkey created the Turkish Catastrophe Insurance Pool which insured all urban residential buildings on registered land for earthquakes.

But usually, the government would jump straight to the top of the risk layering model and use international donations to fund calamity response.

Mexico established the Fund for Natural Disasters which gets 0.4 percent from the annual federal budget and accrues interest in a trust fund.

Issues with insurance also plays a big part in post-calamity recovery and reconstruction. Rellosa explained that government property insured with the Government Service Insurance System (GSIS) are not automatically insured for typhoons and may be grossly underinsured.

The Caribbean Community government’s Caribbean Catastrophe Risk Insurance Facility, which is similar to business interruption insurance, ensures that they will have short-term liquidity if hit by a hurricane or earthquake.

“In Leyte and Samar, most of the government buildings destroyed by Haiyan were found to be not insured,” he said.

Rellosa said that insurance with GSIS, as the case of Haiyan shows, only covers fire and does not cover natural calamities, since it requires additional premium and government agencies find this an added expense.

He added that most, if not all, government properties are insured based on depreciated values and not on the cost of rebuilding them.

Aside from these problems, the sluggishness of traditional insurance claims handling also causes trouble for

But the future in the Philippines is not too bleak. There have been initiatives to improve financing and insurance mechanisms in the aftermath of calamities.

“There are moves to introduce a joint catastrophe insurance for local government units, set aside a P1 billion budget intended to buy insurance and to pay for other mitigation initiatives, and set up a catastrophe insurance pool for homeowners and small businesses,” Rellosa said.

Laws have also been enacted to increase DRRM funds and streamline the approval of its release. Republic Act 10121 sets a minimum of 5 percent of regular income sources to be allocated as local DRRM fund. Rellosa said this law also enables local government units to use 70 percent of the fund for disaster prevention.

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NEW HOMES FOR HAIYAN SURVIVORS Insurance Commissioner Emmauel Dooc joins PIRA officials in turning over new homes to survivors of super typhoon Haiyan in Alangalang, Leyte. The houses were financed by donations from the ASEAN Insurance Council and constructed by Gawad Kalinga.Â

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COUNTRY OVERVIEW

Making Insurance Affordable, Accessible To More Filipinos 32 2017 PIRA FACT BOOK

Fifty-year-old Freddy Pascua has worked for 20 years as a security guard without insurance despite constant risks to his safety. He is uninsured not because he does not believe in insurance. He is uninsured because he thinks he could not afford insurance.

There’s good news for people like Pascua: The government in partnership with the insurance industry has developed microinsurance as a way of making insurance affordable and accessible to more Filipinos – selling insurance protection for as low as P120 a year for security guards, students, public utility drivers, and farmers.

The Department of Finance estimates 26.6 million Filipinos or about a quarter of the population have already patronized microinsurance as of the beginning of this year, 7 years after such innovation was introduced.

Specifically geared towards low-income households, microinsurance offers bite-sized insurance products that effectively mitigate risks while reducing the vulnerability of those in the lower end of the market.

According to a research by the Philippine Institute for Development Studies, the term “micro” pertains to the capacity of a program to handle the small, sometimes irregular cash flow of underprivileged families who have been excluded in the commercial insurance system.

The advent of micro-insurance may be traced to as early as 2006 with the issuance of the First Circular on Micro-insurance by the Insurance Commission that led to the creation of Mutual Benefit Associations. Until 2009, the bulk of what constituted microinsurance products was primarily credit life insurance — a life insurance policy designed

to pay off a borrower’s debt in case of death.

Lorenzo Chan, president of Pioneer Life and a staunch advocate of microinsurance, says this kind of innovation can be considered the "sachet" of insurance. He said this developed because it is the only insurance many Filipinos could afford “The market lives on a very tight budget and often do not have the means to wait for lengthy periods," he said.

Chan noted that during the aftermath of super typhoon Haiyan (Yolanda), insurance companies had to be quick with alternative documentation requirements to be able to settle claims.

“Back then, we promptly paid the claims of 20,199 families in Leyte and Samar. That’s 20,199 families less dependent on doleouts and evacuation centers. That’s 20,199 families who started rebuilding soon as their claims were settled.”

While micro-insurance may not provide the market with all the needed coverage, it offers timely cash assistance, enabling those who suffered losses to start rebuilding their lives and properties, settle their bills, bury their dead and move on quickly.

Chan was recently elected to the Board of Directors of the Micro-insurance Network — a non-profit organization based in

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Luxembourg and the only international multistakeholder platform in the microinsurance industry with experts committed to promoting the development and delivery of insurance services to low income people. The network serves as a platform for members to share and trade insurance expertise among 80 institutional members from over 40 countries, including those coming from the insurance industry as well as governmental and development organizations.

Recently, the Philippines saw the formation of the Mutual Exchange Forum on Inclusive Insurance (MEFIN Network), a collegial body of insurance policy makers and regulators in Asia.

As this developed, the Asian Development Bank Japan Fund for Poverty Reduction (JFPR) concluded its long-running study on the development of microinsurance in the Philippines.

Michael F. Rellosa, deputy chairman of PIRA, congratulated the ADB for such a very important project. "How I wish this project could continue on until we microinsurance becomes part of the everyday life of every Filipino.

Rellosa said that the ADB and PIRA's technical working group on microinsurance have worked together for the development of regulatory frameworks and the alternative dispute mechanisms for microinsurance.

"We in PIRA believe that poverty should not be an excuse for not buying insurance. On the contrary, we insist that poverty should a reason to buy insurance. Because believe it or not, the poorer a person is, the more he or she needs insurance," he said.

There are already at least 22 PIRA membercompanies with microinsurance products. As early as 2008, there has been a typhoon-

weather-indexed-based crop insurance from one of PIRA members, Rellosa said.

"These companies have seen the potential of microinsurance. They see what economists label as the "fortune at the bottom of the pyramid," he said.

Rellosa urged the ADB-JFPR to consider in its future direction to focus more on insurance providers and come up with a study on them.

"How can these insurance providers earn more profit from microinsurance? Because in the end, I am convinced that private insurance companies would continue developing microinsurance if they are earning from it," he said.

The PIRA executive also listed two wishes that the industry would want from the government.

First, is lower taxes for all non-life insurance products especially microinsurance. "Microinsurance is a tool for poverty alleviation and disaster risk mitigation. Maybe it is high time that we scrap all the taxes on microinsurance altogether to make it more affordable. This way, more Filipinos would be able to afford insurance," Rellosa said.

And second, a regulatory environment that fosters growth, and does not restrict it.

"Our industry has a huge challenge to face with the advent of the ASEAN economic integration. We need our government to strengthen us by allowing us more leeway, more room to stretch our limbs, more room to grow," he said. "We all have one hope and one dream. And that is to harness our market's potential and make insurance inclusive for all, not only for the rich but more so for the poor."

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Finance Secretary Carlos Dominguez congratulates newly appointed Insurance Commissioner Dennis B. Funa.Â

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New Commissioner Named for IC President Duterte has appointed lawyer Dennis Funa as the new Commissioner of the Insurance Commission (IC), replacing Emmanuel Dooc whom he assigned to head the Social Security System (SSS).

Atty. Funa was sworn into office by Finance Secretary Carlos Dominguez in December 2016 after Executive Secretary Salvador Medialdea confirmed his appointment.

As Insurance Commissioner, Atty. Funa will concurrently sit as a member of the AntiMoney Laundering Council (AMLC), alongside the governor of the Bangko Sentral ng Pilipinas Governor Amado Tetangco Jr. and the Chairperson of the Securities and Exchange Commission.

Atty. Funa served as Deputy Commissioner for Legal Services under Commissioner Dooc. And now as Commissioner, he vowed to continue what his predecessor started and pursue innovation that is truly needed in the insurance industry.

Atty, Funa obtained his law degree at the San Beda College and passed the Bar in 1992. He now specializes on intellectual property law and constitutional law.

As a lawyer, he served as a legal consultant to the National Power Corporation and various members of the Congress.

Atty. Funa was also managing partner at

the Funa Balayan Fortes Galandines Villagonzalo and Jimeneo Law offices.

For more than 12 years, he was placed as a national officer of the Integrated Bar of the Philippines (IBP) and was named “Most Outstanding Commissioner” of the IBP in 2007.

Atty. Funa also headed the Philippine delegation to various international intellectual property conventions, such as the Asia-Pacific Conference on New Technology and Enforcement of Copyright in 1995, and the World Intellectual Property Organization’s ASEAN Regional Round Table on Intellectual Property Rights Cooperation and the Agreement on TradeRelated Aspects of Intellectual Property Rights in Thailand in 1996.

With years of law practice, Atty. Funa has authored books on intellectual property law, administrative law and international law.

He first served as special assistant to the appointments secretary of the President under the Ramos administration.

He also served in the Videogram Regulatory Board and the Presidential Inter-Agency Committee on Intellectual Property Rights.

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Members of the Board of Trustees of the Philippine Insurers and Reinsurers Association (PIRA) are inducted to office

by Insurance Commissioner Dennis B. Funa and his deputies during the 68th anniversary of the Insurance Commission.Â

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DOF to IC: Sustain Pro-People Reforms The Insurance Commission (IC) should enhance its protection measures for consumers by building on the reforms and better regulatory capacity that it has put in place in recent years to avoid a repeat of the “ugly episodes” in the past when several preneed companies failed in succession, Finance Secretary Carlos Dominguez III said.

In his remarks at the agency’s 68th anniversary celebration, Dominguez also called on the IC to gear up for an insurance industry boom that will be one of the positive outcomes of the expected long period of growth on the Duterte watch.

With the IC’s primary job of assuring consumers of insurance products that their investments are safe, the Commission should help rebuild the public’s faith in companies that sell them insurance or preneed products, Dominguez said.

“We have gone through ugly episodes in the past. One particularly troublesome episode was when several pre-need companies failed in succession. We have yet to arrive at a final verdict on whether these failures were due to bad management of the providers or bad policy on the part of government,” Dominguez said.

“At any rate, thousands of consumers, paying premiums with their hard-earned

money, lost their valuable savings. That injury should not happen again,” he told IC officials and employees led by newly appointed Commissioner Dennis Funa.

Dominguez was referring to the near collapse of the pre-need industry over a decade ago, when a law lifting the cap on school tuition fees was enacted, making it difficult for many local pre-need firms, which sell mostly education plans, to meet the burgeoning costs of their maturing contracts.

“I am sure that because of the reforms instituted by the Insurance Commission and better regulatory capacity, the chances for failure have been dramatically diminished,” Dominguez said.

“We have to build on these reforms. We have to rebuild the faith of our people on companies that sell them insurance or preneed products. That is always a challenging job, to be sure. But I have faith

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that the Insurance Commission will perform its regulatory role abiding by the highest standards,” he said.

Assuring consumers of the soundness of the products sold in the industry is just half of the IC’s job though, Dominguez said, as the Commission must also ensure that insurance companies provide their clients with fairly priced premiums.

“We can only expect more dramatic growth in the insurance business as our economy is poised for a long period of high growth. Both the Insurance Commission and our industry partners should gear up for this,” he added.

“When premiums are overcharged, the cost of the products could be pushed beyond the reach of most consumers who need the protection these products otherwise bring,” Dominguez said.

In his speech, Dominguez also discussed how the Duterte administration intends to sustain the economic expansion that is responsible for the nascent blooming of the insurance industry.

He said the IC, for one, should look into the insurance coverage offered for vehicles and residential properties supported by the PAG-IBIG Fund that often involve “unreasonable premiums. ”

He cited President Duterte’s “AmbisyonNatin 2040” growth strategy that envisions a Philippines as a “prosperous, predominantly middle class society where no one is poor.”

“Insurance and pre-need industries are inherently risk-based businesses. They also involve arcane actuarial computations not readily clear to consumers patronizing these businesses.

By merely tweaking on these actuarial computations, huge profits could be made at the expense of consumers,” Dominguez said.

“This might seem an ambitious goal. But, I assure you, the goal is a reachable one,” he said.

Following the pre-need crisis, the insurance industry began to prosper, with assets growing to P1.32 trillion as of September 2016, which translates into a 21.27 percent increase over the same period in the previous year.

PIRA Chairman Augusto P. HIdalgo and the 9-member PIRA Board of Trustees personally congratulated Commissioner Funa and took their oath before him as newly elected officers of the association.

The insurance industry contributed P19.38 billion in 2015 through premium taxes.

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of the credit for this booming sector of the economy,” Dominguez said.

“This is a remarkable achievement. The Insurance Commission should take part

Meanwhile, the Philippine Insurers and Reinsurers Association (PIRA) has pledged its support to the IC under the leadership of its new Commissioner, lawyer Dennis B. Funa.

PIRA and the IC work hand-in-hand in formulating policies that promote the growth of the industry. Being the voice of the industry, PIRA speaks on behalf of its members and hold a monthly dialogue with the IC on vital issues that affect their business.

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New Insurance Commissioner Dennis B. Funa vows to continue the pro-people reforms of the regulatory body.Â

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INDUSTRY OVERVIEW

Since the 9/11 attack, terrorism insurance industry has grown exponentially. In the Philippine setting, however, it was only recently that a product has been approved which covers losses as a direct result of a terrorist act,

Atty. Dennis B. Funa Insurance Commissioner

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Insurers Urged: Offer Terrorism Coverage The Insurance Commission has highlighted the need for industry players to consider selling insurance cover against terrorism following the recent attacks allegedly perpetrated by terrorists.

Amid the continuing risk of terrorist attacks, Insurance Commissioner Dennis B. Funa said it is important that the public be protected against losses and damages resulting from terrorist attacks.

“Since the 9/11 attack, terrorism insurance industry has grown exponentially. In the Philippine setting, however, it was only recently that a product has been approved which covers losses as a direct result of a terrorist act,” Funa said in a statement.

Currently, there is only one company in the country that offers terrorism insurance. And Commissioner Funa wants more industry players to have their own products.

“Terrorism insurance should provide financial protection in the event of death or serious disability such as total and irreversible loss of sight on both eyes or hearing on both ears, total and permanent inability to use one or both hand or one foot or both feet,” Funa said.

He explained terrorism is one of the major social issues in the Philippines, noting attacks expose any person to the risk of incurring loss to life, limbs and property.

However, it has been considered a

'standard exclusion" in typical life and nonlife insurance policies.

“This leaves a significant gap between the likelihood of terrorist attack and the risk we are exposed to upon the happening of such attack,” Commissioner Funa said.

In recognizing this gap, Commissioner Funa urged insurance companies to develop products that will afford protection against losses and damages as a result of acts of terrorism.

“Considering that the Philippines is considered as ‘high risk’ country in terms of likelihood of terrorism attack, we encourage insurance companies to develop life and non-life insurance products which specifically covers losses and damages resulting from acts of terrorism,” Commissioner Funa said.

Terrorism insurance provides coverage to individuals and businesses for potential losses due to acts of terrorism.

On top of payment for the insured in case of death and injury, Commissioner Funa wants the terrorism insurance to also cover damages to property due to terrorist acts.

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Terrorist acts are often considered a "standard exclusion" in the typical property insurance policy.

Insurance companies find it hard to cover such peril as the odds of terrorist attacks are very difficult to predict and the potential liability enormous. \ For example, the September 11, 2001 attacks in New York resulted in an estimated $31.7 billion loss. This combination of uncertainty and potentially huge losses makes the setting of premiums a difficult matter.

Concentration of risk is another factor in determining availability for terrorism insurance. Due to the concentrated losses of the World Trade Center attack, insurers were hit with large losses in one centralized location.

Insurance companies are using an approach that is similar to that used with natural catastrophe risks. Studies have suggested that in a case where demand is greater than the supply for terrorism coverage, then a short-term solution is possible. The solution is a mix of government and private resources to make easy the transition. In this situation, the government would serve two functions: To establish rules to overcome the capacity shortage and to be the insurer of last resort.

This is what's being done in more advanced countries. In the Netherlands, for instance, insurance payments related to terrorism have a cap of a billion euros per year for all insurance companies. This is for both life and non-life insurers, including health insurance providers.

In the UNited States, the US Congress

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enacted in 2002 the Terrorism Risk Insurance Act (TRIA), in which the government shared the cost of large insurance losses.

In mid-2007 the idea of another extension to TRIA was tabled and is officially known as Terrorism Risk Insurance Revision and Extension Act (TRIREA). Initially TRIREA contained several new provisions including a mandatory 'make available' clause for Nuclear, Chemical, Biological and Radiological coverage and the ending of the distinction between domestic and foreign events. The act expired on December 31, 2014, but was renewed at the start of the next Congress.

In other countries more prone to terrorism, there exists certain insurance products akin to terrorism insurance.

In the United Kingdom, following the Baltic Exchange bombing in 1992, all UK insurers stopped including terrorism cover on their commercial insurance policies. As a consequence, the government and insurance industry established the Pool Reinsurance Company. Primarily funded by premiums paid by policyholders, the government guarantees the fund although any such support must be repaid from future premiums. To date, despite paying over ÂŁ600 million in relation to 13 separate claims, no government support has been necessary.

In France, a pool of insurers and reinsurers was set up in 2002 under the name Gestion de l'Assurance et de la RÉassurance des risques attentats et Actes de Terrorisme (GAREAT). This was built on the principle of mutuality between its members, all of whom are jointly liable, and relies on the support given to GAREAT by international reinsurers.

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Insurance companies are using an approach that is similar to that used with natural catastrophe risks. Studies have suggested that in a case where demand is greater than the supply for terrorism coverage, then a short-term solution is possible. The solution is a mix of government and private resources to make easy the transition. In this situation, the government would serve two functions: To establish rules to overcome the capacity shortage and to be the insurer of last resort.

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ASEAN INSURANCE CHAIRMANSHIP The chairmanship of the ASEAN Insurance Council (AIC) was given to PIRA in 2016. Mr. Michael Rellosa occupied the post on top of being at the helm of the AIC’s Education Committee. In November 2016, Mr. Rellosa and other PIRA executives attended AIC events in Yogyakarta, Indonesia and even partnered with the Insurance Institute for Asia and the Pacific in organizing the first ASEAN Managers Microinsurance Course.

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INDUSTRY OVERVIEW

Ready to Grow or Ready to Go? THE PHILIPPINE NON-LIFE INSURANCE INDUSTRY, as expected, once again experienced a reduction in the number of players, mainly because of the higher capitalization / net worth requirement of the government.

As of June 2017, the number of non-life insurance companies granted Certificates of Authority by the Insurance Commission is down to 63, from 66 last year.

Despite the reduction, however, the industry has continued to grow in financial strength.

The industry's assets, for one, has grown by 7.16 percent from 2015 -- from 163.9 billion to 175.62 billion.

Based on numbers from the Insurance Commission, the industry has 19 companies with over P2 billion in assets, while 20 companies have assets amounting to over P1 billion.

As for the net worth, the Philippine non-life insurance industry has registered a growth of 12.18 percent -- from P68.3 billion in 2015 to P76.6 billion in 2016.

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Almost of half of this total net worth of the industry is accounted for by only 13 companies with more than P1 billion each.

These companies are already past the ongoing capital build-up program

that will reach its completion by 2022.

With higher capitalization, it is only natural that the industry would also register higher production.

The industry's Gross Premiums Written for 2016 reached P78.5 billion or 9.89 percent higher than the P71.4 billion GPW the previous year.

More impressive, however, are the Net Premiums Written by the industry. For 2016, the industry retained P41.61 billion worth of premium, a 16.4 percent jump from the P35.79 billion it retained in 2015.

And finally, the industry's net income -which is dependent more on amount of claims insurance companies pay more than income they derive from investments.

Fifteen insurance companies registered a net loss at the end of 2016, with the biggest loser logging more than a billion pesos in losses.

However, the good news is, despite this reality, the industry was still able to post a

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net income of P3.37 billion for 2016 -- or a 2.66 percent growth rate from the P3.285 billion net income it registered the previous year.

has an estimated population of 103.4 million, yet he wonders how many of the people living in this country have actually bought insurance?

In terms of losses, PIRA data revealed that the industry registered an overall loss ratio of 43.28 percent in 2016, higher than the 39.56 percent it logged in 2015.

"Compare that with how many people have cellphones in this country? What's the difference? People buy cellphones because they know they need it. People don't buy insurance because they don't know they need it," he said.

This loss ratio was influenced by the rise in losses in Fire insurance (59.52 percent) and Motor Car insurance (50.31 percent).

Despite these, however, still the industry has posted growth in virtually all aspects pf the business.

PIRA Deputy Chairman Michael Rellosa, in his speech at the 2017 Non-Life Insurance Summit earlier this year, noted that growth is what the industry needs to be able to survive.

"Yet how do we grow? How can a small company like the one I lead right now grow to be one of the biggest in our industry?" he asked.

"Is there a growth hormone for business that we can take to accelerate our growth?"

Rellosa said that the industry is divided now into two groups -- the majority of companies and the minority. The majority are yearning to grow, while the minority are ready to go.

He advised those who are yearning to grow the following: First is to promote the importance and the value of insurance.

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According to Rellosa, the Philippines now

He stressed that if the industry truly wants to reach its full potential, then it should make people realize their need for insurance. "With all the risks our country is blessed with, it will not be very hard to convince our countrymen of their need for insurance," he said.

Rellosa's second challenge to insurance executives is to improve the claims experience of their clients.

"In our industry, our main product is a promise. And it is through claims that we deliver that promise. Unfortunately, it is here where some of us falter. To some, the default mode is to deny the claim unless it can be proven that it should be paid. This, to me, needs some serious evaluation if we truly want people to appreciate insurance. Our default mode should instead be to make claims payment an easy and hassle-free process for our clients. How to do it amidst reports of rising incidents of fraud is what we all need to figure out. But that's another story," he said.

And finally, Rellosa's last challenge is for the industry to outdo itself and come up with really innovative ideas.

He explained that innovative ideas need not be earth-shaking. They can be as mundane as how to simplify things.

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He cited as an example the industry's need for data. "Our rates are all based on scientific data gathered by experts through the years. Yet how many of us actually contribute data to PIRA's Motor Claims Information System whose latest version we just launched recently? We need ideas how to make PIRA members regularly contribute data," he said.

Another example he cited involves electronic insurance policies. Despite all the seminars done on this, there are still very few companies who have really migrated to a paperless way of doing business.

"We need ideas on how to make paperless more the norm rather than the exception in our industry. We also need ideas on how to convince our government that lowering taxes for non-life insurance is good for the country," he stressed.

Rellosa noted further that the growth the industry needs is the growth that addresses the needs of present and future clients.

He encouraged the industry to continue growing the microinsurance sector, the creation of the Natural Catastrophe Pool, and prepare the industry for the so-called Big One earthquake that experts expect could happen anytime.

"We are the ones who should be the most concerned about this as we are in the business of risks. Is our industry ready if the Big One hits? Are we big enough to absorb the losses?" he asked.

In closing, Rellosa pointed out that the industry needs to grow to become big enough to handle the Big One and similar catastrophes.

"Because if we are not big enough when the Big One happens, only God knows how we can survive and how we can serve our clients. In the final reckoning, it is in the service that we can give to our clients -- not in our net worth, not in our net income --that we will be measured with," he said.

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PIRA GENERAL MEMBERSHIP MEETING The Association’s members held their annual General Membership Meeting in December 2016 at the Asian Institute of Management. The event served as venue for PIRA Chairman Augusto P. Hidalgo to give his report and for the members to elect new members of the PIRA Board of Trustees.

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GOOGLE AND INSURANCE Kenneth Lingan, Google's Country Director for the Philippines. provides an incisive look into how people view insurance through the way they search on the Internet. Below, FPG Insurance President Ramon Dimacali reacts to the presentation as Michael Rellosa and Mark Lwin of PIRA listen.

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INDUSTRY OVERVIEW

Insures Tackle Global Issues Top leaders of the Philippine non-life insurance industry gathered together to discuss the hottest global issues affecting them during the 2016 PIRA Regional Dialogue.

With the theme “One World, One Future,” the event held at the New World Hotel in Makati City, served as a forum for non-life insurance executives to exchange ideas with experts and among themselves.

A powerhouse cast of speakers provided the industry with world-class insights and perspectives.

Then ASEAN Insurance Council Chairman Michael Rellosa gave the keynote for the morning session with his presentation on globalisation and its effects on PIRA and member countries of ASEAN. He was followed by Google Philippines country head Kenneth Lingan who talked about Winning Moments in a Mobile-First Era. Bona Santiago and Fabian Lum Wai Kit of Merimen Technologies presented a glimpse of the future of insurance and they were followed by Ashish Jain from AIR Worldwide who spoke about the importance of subperils like liquefaction, tsunami and storm surge in risk management.

Singapore Tourism Board’s Grace Cuenca presented exciting prospects for Philippine insurers going to the island state.

She was followed by Department of Transportation Undersecretary Raoul Creencia who provided the afternoon keynote on the change Filipinos want to see.

Philippine Institute of Volcanology and Seismology Director Renato Solidum gave an update on the feared Big One earthquake while Oscar Lizardo of Project NOAH spoke on how science could help insurers cope with change.

Lawyer Jorge Brania of the Insurance Commission talked on money laundering and insurance and House Deputy Speaker Romiro Quimbo provided a legislative update on the country’s tax reform, with particular focus on the heavy tax burden that insurers bear.

The PIRA Regional Dialogue is an annual event held every October as part of the Insurance Consciousness Week.

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GLOBAL ISSUES, LOCAL CONCERNS Top executives of the country’s non-life insurance companies gathered at the New World Hotel on October 7, 2016 for the PIRA Regional Dialogue where they discussed global issues that affect their business.

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TRICYCLE GOES ELECTRIC Electric tricycles go on a motorcade in the University of the Philippines campus in Diliman, Quezon City to mark the arrival of electric public utility vehicles in the country's premiere educational institution. The tricycles are now known as UP E-Kot, which is a pun on the UP Ikot jeepneys that ply the university's roads.Â

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INDUSTRY OVERVIEW

IC Eyes Better RBC System For Industry THE INSURANCE COMMISSION is looking into an improved RiskBased Capital system to further strengthen the local industry.

Insurance commissioner Dennis Funa said one of the challenges facing the insurance industry is the transition from the current riskbased capital (RBC) system to a new framework dubbed as RBC 2.

“In addition to the net worth requirement, we have the risk-based capitalization. All of these are geared towards strengthening the finances of insurance companies,” said Commissioner Funa.

“Basically the main change here is the adjustment in risk charges on equities. Let’s say, in every company’s equities investment, there’s a certain percentage required as buffer,” the Commissioner explained.

The guidelines of the new framework are provided in IC’s Circular Letter 68, signed on Dec. 28, 2016.

According to the circular, the new RBC framework is anchored towards three pillars.

Pillar 1 includes the quantitative requirements in relation to the calculation of capital requirements and determination of eligible capital.

Pillar 2 consists of a supervisory review

It also set a minimum RBC ratio of 100 percent for insurance companies.

The RBC ratio is equal to the total available capital divided by the RBC requirement of a company.

Companies that fail to meet the minimum RBC ratio are required to submit a report explaining the cause of failure and a management plan laying out the strategies of the firm to meet the required RBC ratio for the next quarter.

Commissioner Funa earlier said the improvement of the Risk-Based Capital framework, in addition to the increase in minimum capital requirement, would ensure the growth of the insurance industry.

He said the Insurance Commission would also implement several new financial regulatory requirements on financial reporting and valuation standards for policy reserves.

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INDUSTRY ISSUES

Insurers Oriented On IFRS Changes WITH THE INSURANCE COMMISSION'S directive to conduct a levelling phase for the readiness of the non-life insurance industry for the International Financial Reporting Standards (IFRS) 17, the Philippine Insurers and Reinsurers Association (PIRA) conducted an orientation seminar for its members with the assistance of external auditing firm SGV. The orientation seminar was held at the Asian Institute of Management (AIM) in September, with chief financial officers or actuaries of PIRA member companies in attendance.

On May 18, 2017, the financial world welcomed the International Financial Reporting Standards 17 (IFRS 17), a new comprehensive accounting standard for insurance contracts covering recognition and measurement, presentation, and disclosure.

IFRS 17 will become effective for annual reporting periods beginning on or after January 1, 2021. Early application is permitted.

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In the Philippines, the Financial Reporting Standards Council (PIC) delegated to the Philippine Interpretations Committee the task to study the impact of IFRS 17 prior to endorsement to PFRS. In response, the PIC assembled a task force headed by the Insurance Commission to undertake

consultations with insurance industry stakeholders.

According to SGV, the new standard will bring out the most significant change to accounting requirements ever undertaken by insurers in the Philippines, requiring companies to completely overhaul their financial statements and underlying actuarial models, financial reporting processes and systems. “Given the gravity of this change, investors and other stakeholders will want to understand the likely impact as early as possible,� SGV said.

IFRS 17 uses three different measurement approaches: 1. The Building Block Approach (BBA) for long-term contracts; 2.

The Premium Allocation Approach (PAA) for short-duration contracts; and 3. The Variable Fee Approach (VFA) for direct participating contracts. SGV said major changes required will extend beyond finance and actuarial teams.

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Representatives of PIRA member companies listen to a representative of SGV explaining the basics of IFRS 17.Â

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INDUSTRY ISSUES

PIRA Working On Revitalized MCIS The Technical Subcommittee on Motor Car of PIRA is now working on a revitalized version of the association's Motor Claims Information System (MCIS).

Labeled as MCIS 3.0, this fresh version of the system is a much needed update on the 21-year-old online platform that allows PIRA members to share important data on motor car claims to prevent and avoid insurance fraud.

3. Claim records updating forms.

The MCIS 3.0 aims to be integrated with another PIRA initiative -- the Certificate of Cover Authenticating Facility (COCAF) which screens out fake Compulsory Third Party Liability (CTPL) insurance policies.

6. Administration or maintenance modules per company, user, etc.

The service provider of COCAF, NTT Data, is also the company behind MCIS 3.0. It promises to come up with a better system that shall allow the submission, consolidation, viewing and analysis of shared motor car claims data in an easy, fast and reliable manner.

4. Integration with COCAF. 5. Reports generation with specified parameters.

The service provider says MCIS 3.0 will provide 24/7 online and real time validation of claims, thus PIRA members could fully utilize the data in the system to enhance decision-making.

PIRA members would be able to determine faster if there is a possible fraud or if a vehicle has been reported as either Total Loss or Carnapped/Stolen Vehicle or has Substantial OD Claim.

MCIS 3.0 will have the following features: 1. Claims uploading (Single Transactions, Batch, Web Service).

2. Claims verification / inquiry (online real-time,

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Each PIRA member will be able to decide based on the consolidated data and information that would be available from MCIS 3.0.

The MCIS 3.0 integration with COCAF shall provide more value-added benefits to

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COCAF’s customers. Hence, this will also open the doors to entice non-COCAF users to subscribe to the COCAF system.

On top of these, MCIS 3.0 would promote collaboration among PIRA members, specifically in their initiative to reduce fraud in motor car claims transactions.

Art Reyes, chairman of the Technical Subcommittee on Motor Car, said they are now encouraging PIRA members to "test drive" the new system so as to help in perfecting it.

"This is our system and it was built by us and for us," he said. "Like a human being, this system is already 21 years old and is already an adult. We expect it to deliver more substantial results for all of us."

Reyes noted that like any computer project, the system would only be as good as the data its users put into it. He mentioned the computer lingo GIGO (Garbage In, Garbage Out) and told PIRA members that if they do not put in accurate data into MCIS 3.0, then the results it would produce would not be accurate as well.

"Data is the fuel that will make this system run. The better tha data, the better the results we will get from it. So I hope all of us would make this MCIS a truly Maaasahang (Reliable) Claims Information System," he said.

Meanwhile, NTT Data noted that PIRA members who are not reporting their Carnapped/Stolen Vehicles or Total Loss or Substantial OD Claim may not be able to fully benefit from MCIS 3.0.

The developer said that reporting these

important information would allow the system to function as it was designed to.

With incomplete data, then it would have an incomplete result.

NTT Data also said that MCIS 3.0 would use the same infrastructure where COCAF is currently deployed. "This will eliminate complexity in the maintenance of the system’s environment," the company said.

Meanwhile, to secure MCIS 3.0, NTT Data would be utilizing NET and Oracle Database.

NTT Data said what they want to do is enable PIRA and its members to fully secure the data in such manner that a specific user, or member can only access its own specific data.

In short, each member can have its own repository and will not be able to access the data provided by other companies.

The system would only tell the user if the plate number of the car it has reported has already been reported previously to the system by another insurer.

On top of these, NTT Data said MCIS 3.0 would now have security features that would enable PIRA to control accesses and limit users’ data inquiry by having specific roles with specific responsibilities.

The Motor Car line constitutes about 32 percent of the total production of non-life insurance companies in the country.

For 2016, the industry posted a Gross Premiums Written of P23.8 billion for motor car, an increase of 15 percent from the previous year, with a loss ratio of 50.31 percent.

2017 PIRA FACT BOOK

65

APPRECIATION FOR PIRA COMMITTEE MEMBERS Executives from the non-life insurance industry volunteer their time to serve in the various technical committees of PIRA. As a way of showing appreciation to these men and women, PIRA hosted a luncheon at Conrad Hotel in December 2016.

66 2017 PIRA FACT BOOK

67 2017 PIRA FACT BOOK

INDUSTRY ISSUES

Catastrophe Bond Still Being Pushed The Philippines government is still planning to sponsor a sovereign catastrophe bond, in order to further enhance its national level disaster risk financing, and the recently announced parametric disaster insurance pilot is expected to be expanded to cover the entire country.

The recently arranged parametric disaster insurance pilot was launched with World Bank support and global reinsurance backing covering just 25 of the Philippines' 81 provinces.

The parametric insurance pilot is underpinned by reinsurance capital through a catastrophe swap arrangement, which has been backed by some of the world’s largest reinsurers.

According to reinsurer Swiss Re, which supported the set up and reinsurance of the parametric disaster insurance scheme, the Philippines will aim to expand this out to cover the entire country, a move which could see the amount of capacity required to back the scheme multiplied by more than three times.

The Philippines government is still planning to sponsor a sovereign catastrophe bond, in order to further enhance its national level disaster risk financing, and the recently announced parametric disaster insurance pilot is expected to be expanded to cover

the entire country.

Thomas Kessler, head of Swiss Re’s Global Partnerships team for the South East and East Asia region, explained: “It is the country’s stated ambition to scale up the subnational coverage to all 81 provinces in the coming years, helping Philippines to transition from a highly risk exposed country to one with a comprehensive disaster risk financing strategy that few others can match.”

The Philippines is gradually putting in place a tiered approach to managing, financing and transferring disaster risks, with the goal being to help the national and local government players to better respond to disasters, while helping asset owners to protect themselves and ultimately to cover more lives and livelihoods.

Kessler said that at the national level the Philippines already has its $500 million catastrophe contingent credit line from the World Bank and access to sources of international aid.

68 2017 PIRA FACT BOOK

We understand that the work got very close to a catastrophe bond being issued for the Philippines in 2015, but that political changes in the country delayed the process at the time.

Thomas Kessler, SwissRe "We understand that the work got very close to a catastrophe bond being issued for the Philippines in 2015, but that political changes in the country delayed the process at the time. It’s encouraging to learn then that the Philippines catastrophe bond remains firmly on the agenda, with a number of market sources suggesting that work is ongoing regarding this and a government source saying that a late 2017 issuance is possible, although not guaranteed, as the country looks to augment its disaster risk protection using

the capital markets," he said.

A diagram published by Swiss Re also confirms that the catastrophe bond remains on the table, as part of the national level disaster risk financing strategy for the Philippines.

The diagram below also shows the longdiscussed catastrophe risk pool for households, which would enable individuals and homeowners to acquire coverage for specific perils, such as typhoons and earthquakes.

69 2017 PIRA FACT BOOK

GIVING EVERY JUAN A LIGHTER BURDEN House Deputy Speaker and Marikina Representative Romiro Quimbo makes a compelling case to lower the tax burden for ordinary FIlipinos. He vowed to support the refiling of the bill that would lower taxes on non-life insurance.Â

70 2017 PIRA FACT BOOK

INDUSTRY ISSUES

Fight For Lower Taxes Continues The Philippine non-life insurance industry is not giving up on the fight to lower the taxes on insurance. In fact, it is pushing for the refiling of the bill in Congress for this purpose.

This developed as the Insurance Commission (IC) expressed its support to the non-life sector’s proposal of trimming taxes imposed on its premiums, and promised to submit soon its stand on the matter to the government agency tasked to study the matter.

Insurance Commissioner Dennis B. Funa said they would submit to the National Tax Research Center their position on the proposed tax reduction on premiums of nonlife insurance companies.

"The National Tax Research Center has asked for our opinion but we have not submitted it yet, so we will be submitting in the coming days our position paper on that.

We will support tax reduction for non-life… [and] the conversion of VAT (value-added tax) to premium [tax],” said Commissioner Funa.

The IC also pushed for the reduction of taxes levied on non-life insurers under the previous administration to put the sector at par with its neighbors. The regulator and non-life sector were earlier batting to cut

taxes imposed on non-life insurance premiums to 8% from the current high of 27%, in a bid to increase asset coverage in the country.

House Bill (HB) 3235 filed in the previous Congress eyed to trim taxes imposed on non-life insurance premiums to as low as 2% by exempting it from the 12% VAT plus a documentary stamp tax ranging from P10 to P100 per year.

The IC had said that instead of the provisions under the bill, non-life insurance should be subject to a 5% VAT that will be called a premium tax, and to a 0.5% documentary stamp tax (DST).

On top of the 5.5% duty, a 2% tax would be collected for fire service tax, and an additional levy will be paid to local government units, which range from 0.15% to 0.75%.

However, the Philippine Insurers and Reinsurers Association (PIRA) has been bearish on the passage of their motion of reducing taxes imposed on non-life

71 2017 PIRA FACT BOOK

insurance premiums under President Duterte’s administration.

“I am not optimistic, but we will not give up the fight,” PIRA Deputy Chairman Michael Rellosa has said in interviews.

Asked if this has been discussed with Mr. Duterte’s government, Mr. Rellosa said, “You see, it goes against the plan of the government. The government wants to fund all these projects. As a matter of fact, they are actually increasing taxes, so I don’t think, policy speaking, we are going to get any ground.”

Unlike life insurance companies that are levied only a 2% tax on their premiums, the government collects the following taxes from non-life insurance holders: 12% VAT, a 12.5% documentary stamp tax, a 2% fire service tax, and a 0.15% to 0.75% local government tax.

At the end of 2015, taxes collected from the insurance industry climbed 12.67% to reach P19.38 billion from P17.21 billion in 2014 driven by DST, VAT, final withholding tax, other withholding tax, and premium tax.

For non-life insurance companies, bulk of their tax payments were DST and VAT, with their total DST dues at P5.81 billion last year, 4.33% higher from P241.1 million in 2014 and VAT payments at P4.62 billion in 2015, 13.86% higher from P561.78 million in the previous year.

72

Insurance Commissioner Funa noted that the proposed premium tax on non-life insurers will be included in the fourth package of the government’s tax reform

program.

Sought for comment, the Finance Department said it is still reviewing its inclusion of premium tax in the fourth package.

“We will cover the insurance sector but no details yet,” Finance Undersecretary Karl Kendrick T. Chua answered when asked if the IC’s proposed premium tax will be included in the Duterte administration’s tax reform program.

Meanwhile, more lawmakers are convinced of the importance of lowering the taxes on non-life insurance.

Marikina Representative and House Deputy Speaker Romero Federico "Miro" Quimbo told non-life insurance executives during the 2016 PIRA Regional Dialogue that he sees the wisdom of slashing the tax burden of the non-life sector as it provides financial protection to Filipinos, particularly during calamities.

PIRA's Rellosa related that in the said event, "Rep. Quimbo as one of guest speakers, and being one of proponents of the bill to lower taxes, mentioned that he is going to support it to the end."

“The bill has been refiled by Davao Representative Karlo Nograles, and Congressman Quimbo said he is going to back it up,” he added.

Like the bill filed by Nograles that seeks to lower the overall tax on non-life insurance to 5%, Quimbo’s proposed measure did not pass the last Congress due to the Department of Finance's opposition.

Mr. Rellosa said the industry remains hopeful yet at the same time pragmatic about this.

2017 PIRA FACT BOOK

“We’re keeping our fingers crossed, hopefully the DOF sees the wisdom of this looking forward,” Mr. Rellosa said. “(Lawmakers) want to put all the tax laws together in one bill, because … that’s what they’re prioritizing,” he added.

At the 2016 PIRA Regional Dialogue, Quimbo said it is illogical for the government to slap a 27.5 percent tax on non-life insurance when insurance is a tool to empower the people to help themselves and not rely on government help in times of disasters.

“We live in one of the most disaster-prone countries in the world which makes it truly ironic that we have one of the highest taxes for non-life insurance. It doesn’t make sense,” Rep. Quimbo said.

“You tax something that you do not want people to buy. In our case, we should be encouraging people to buy insurance as a way of empowering them,” he added.

Officials of PIRA, the umbrella organization of non-life insurance companies, earlier said the government should stop penalizing the public who are aiming for self-protection by slapping huge taxes on non-life insurance products.

insurance.

PIRA has been pushing for lower taxes for its members since 2011, insisting that the government could recoup whatever revenue it loses from proposed reduction in taxes on premiums through higher premium income volume resulting from more affordable insurance premiums and higher demand for non-life insurance products.

PIRA has conducted a study that shows that there is an added advantage of higher insurance penetration rates on the readiness and resilience on the part of the population and lower tax burden on the part of the government in times of disasters.

The association noted that if premiums are lowered with less taxes, then more people would be able to afford insurance, and hence the insurance penetration in the country would go up.

"A 1% increase in insurance penetration may lead to a 13% reduction in uninsured losses and 22% reduction in taxpayers' contribution following a disaster," PIRA said.

"An affordable catastrophe insurance is essential for countries that are vulnerable to natural disasters, which will result in lower rehabilitation cost for the government in the event of catastrophes," the group added.

This led the products becoming a luxury instead of a basic need that protects the public whenever disasters or accidents strike, industry players said.

PIRA also pushes for equitable treatment with life insurance which enjoy far lower taxes.

A National Tax Research Center study noted the Philippines is the only country in the ASEAN region imposing a tax other than income tax, value-added tax and documentary stamp tax on non-life

"We should be treated as equal with those in the life sector for us to be more competitive with those from other countries in ASEAN and be responsive to the needs of the economy," PIRA said.

2017 PIRA FACT BOOK

73

INDUSTRY ISSUES

Higher Passenger Insurance Pushed THE INSURANCE COMMISSION is looking into an improved RiskBased Capital system to further strengthen the local industry.

Insurance commissioner Dennis Funa said one of the challenges facing the insurance industry is the transition from the current riskbased capital (RBC) system to a new framework dubbed as RBC 2.

“In addition to the net worth requirement, we have the risk-based capitalization. All of these are geared towards strengthening the finances of insurance companies,” said Commissioner Funa.

“Basically the main change here is the adjustment in risk charges on equities. Let’s say, in every company’s equities investment, there’s a certain percentage required as buffer,” the Commissioner explained.

The guidelines of the new framework are provided in IC’s Circular Letter 68, signed on Dec. 28, 2016.

According to the circular, the new RBC framework is anchored towards three pillars.

Pillar 1 includes the quantitative requirements in relation to the calculation of capital requirements and determination of eligible capital.

Pillar 2 consists of a supervisory review

It also set a minimum RBC ratio of 100 percent for insurance companies.

The RBC ratio is equal to the total available capital divided by the RBC requirement of a company.

Companies that fail to meet the minimum RBC ratio are required to submit a report explaining the cause of failure and a management plan laying out the strategies of the firm to meet the required RBC ratio for the next quarter.

Commissioner Funa earlier said the improvement of the Risk-Based Capital framework, in addition to the increase in minimum capital requirement, would ensure the growth of the insurance industry.

He said the Insurance Commission would also implement several new financial regulatory requirements on financial reporting and valuation standards for policy reserves.

74 2017 PIRA FACT BOOK

75 2017 PIRA FACT BOOK

INDUSTRY ISSUES

Future Actuaries Get To Know PIRA The future actuaries of the country now studying at the University of Santo Tomas (UST) got a sneak preview of the non-life insurance industry when the Philippine Insurers and Reinsurers Association (PIRA) Campus Tour visited the Manila-based school recently.

Almost 200 students majoring in Actuarial Science trooped to the PIRA Campus Tour to listen to two experts from the industry as they presented career prospects and growth opportunities in non-life insurance.

Armand Pesigan, first vice president of Pioneer Insurance, spoke about how actuarial science majors can actually "create their future" by choosing a career in insurance.

He talked about the importance of non-life insurance and the role it plays in the global and local economy, and stressed the need for people who are good at science and math.

The second speaker, Januario Aliwalas, the executive director of the Insurance Institute for Asia and the Pacific (IIAP), discussed the SUITS Program and invited the students to join.

SUITS stands for Select Universities Insurance Training Scholarship. It is a twomonth intensive management training course that the IIAP offers for free to

qualified applicants. Those who go through this course are sought after by insurance companies and immediately hired for managerial positions.

Pesigan and Aliwalas stressed that they never planned to work in the insurance industry and discovered their careers by accident.

Incidentally, the two are both UST graduates. Pesigan finished BS Behavioral Science with Aliwalas finished BS Mathematics, magna cum laude.

The future actuaries from UST got all excited at the prospects presented by Pesigan and Aliwalas that more than 20 of them already signified intention to join the SUITS Program.

They also visited the PIRA Job Fair participated in by ALC Group of Companies, Alliedbankers Insurance, Investors Assurance, Malayan Insurance, PNB General Insurance, Standard Insurance and UCPBGen Insurance.

76 2017 PIRA FACT BOOK

PIRA CAMPUS TOUR GOES TO UST -Armand Pesigan, chairman of PIRA's Education Committe (left) is joined by Januario Aliwalas (lower left), executive director of the Insurance Institute for Asia and the Pacific, in giving a lecture on the basics of insurance to Actuarial Science students of the University of Santo Tomas.Â

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PIRA-MEDIA SURVIVAL TRAINING Executives of PIRA and members of the media writing about insurance get a basic survival training in the jungles of Subic Bay, Zambales on June 12, 2016. The training was part of PIRA's advocacy of promoting the importance of insurance to the general public through the media. Â

79 2017 PIRA FACT BOOK

East Asian Insurance Congress Returning To Manila in 2018 Hundreds of Asia's leading insurance executives and upcoming talent will converge on Manila on May 6 to 9, 2018 for the 29th East Asian Insurance Congress (EAIC).

Mr. Ramon Dimacali, chairman of the 29th EAIC Organizing Committee, and Mr. Augusto Hidalgo, chief delegate of the Philippines, said the event would be held at the Marriot Grand Ballroom near Manila's international airport. The event would have the theme: “Managing Disruptions, Driving Change."

representatives from East Asia's entire insurance industry, both from the life and non-life sectors.

Mr. Dimacali said the EAIC is the biggest gathering of insurance executives in the region and was last held in Manila in 2000.

Mr. Hidalgo, for his part, said the early dates were chosen taking into account the various potential conflicts in the market and to draw the maximum number of people from around the world.

He said next year's event aims to be different to ensure that it will not only tackle the current challenges of the industry but will also offer solutions and strategic tips to cope with issues and guide industry players to emerge as winners. "This would also be an excellent opportunity for local industry players to network with delegates," he said.

80

Mr. Dimacali added that the most important thing to note is that the EAIC strives to draw

The 2017 EAIC is already different in that it will be staged in the first half of the year instead of in the second half when previous Congresses were held.

The Conference will also attempt to draw delegates beyond the 12 EAIC markets as well as young insurance professionals within the region.

The program is expected to highlight the expertise and talent within the Philippine insurance community and experts from all over the region.

2017 PIRA FACT BOOK

81 2017 PIRA FACT BOOK

2017 Non-Life Industry Statistics

NON-LIFE INSURANCE INDUSTRY STATISTICS Direct Writing Companies, Including GSIS

PREMIUMS ON DIRECT BUSINESS

In Million Pesos % INC/(DEC) Over Previous Year

2012 TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

50,124.01 17,685.17 4,578.24 15,179.78 12,680.82

10.32 16.69 0.17 7.44 9.50

2013 53,040.27 17,900.42 5,163.50 16,594.95 13,381.40

% INC/(DEC) Over Previous Year 5.82 1.22 12.78 9.32 5.52

2014 57,828.85 20,971.36 4,901.92 18,123.01 13,832.57

% INC/(DEC) Over Previous Year 9.03 17.16 (5.07) 9.21 3.37

2015 66,960.77 24,658.37 5,877.69 20,179.00 16,245.70

25%

2016 Direct Premiums Production

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

15.79 17.58 19.91 11.34 17.45

72,892.58 25,783.35 5,617.94 23,531.32 17,959.97

8.86 4.56 (4.42) 16.61 10.55

Others

Percentage Distribution by Line of Business

35%

Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

PREMIUMS ASSUMED

% INC/(DEC) Over Previous Year

8,201.76 4,067.88 1,396.09 734.44 2,003.36

GROSS PREMIUMS TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

32%

In Million Pesos 2012

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

8%

3.72 13.03 12.56 (19.17) (7.25)

2013 9,617.12 5,181.61 1,531.56 691.61 2,212.35

% INC/(DEC) Over Previous Year 17.26 27.38 9.70 (5.83) 10.43

2014 8,708.29 4,257.40 1,659.10 652.74 2,139.05

% INC/(DEC) Over Previous Year (9.45) (17.84) 8.33 (5.62) (3.31)

2015 8,294.92 4,789.02 719.82 541.40 2,244.70

Fire Insurance

Marine Insurance & Aviation

Motor Car Insurance

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

(4.75) 12.49 (56.61) (17.06) 4.94

8,127.28 4,816.58 565.93 309.83 2,434.94

(2.02) 0.58 (21.38) (42.77) 8.48

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

13.10 16.72 0.56 10.36 15.77

81,019.86 30,599.93 6,183.87 23,841.15 20,394.92

7.66 3.91 (6.27) 15.06 10.30

In Million Pesos

2012

% INC/(DEC) Over Previous Year

58,325.77 21,753.04 5,974.33 15,914.22 14,684.18

9.34 15.99 2.81 5.83 6.86

2013 62,657.39 23,082.03 6,695.06 17,286.55 15,593.75

% INC/(DEC) Over Previous Year 7.43 6.11 12.06 8.62 6.19

2014 66,537.15 25,228.76 6,561.02 18,775.75 15,971.62

% INC/(DEC) Over Previous Year 6.19 9.30 (2.00) 8.61 2.42

82 2017 PIRA FACT BOOK

2015 75,255.70 29,447.39 6,597.51 20,720.40 18,490.40

Gross Premiums from Direct Writing Companies Including GSIS 30,599.93

30,000

29,447.39 25,228.76

In Million Pesos

25,000

23,841.15

23,082.03

21,753.04

20,720.40

20,000

18,775.75 17,286.06

15,914.22

15,000

18,490.40 15,971.62

15,593.75

14,684.18

20,394.92

10,000 6,695.06

5,974.33

5,000

6,561.02

6,597.51

6,183.87

0 2012 2013 2014 2015 2016 Fire Insurance PREMIUMS CEDED TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

2012

% INC/(DEC) Over Previous Year

24,414.06 13,510.61 2,964.62 1,840.68 6,098.16

8.20 20.46 (11.05) (0.11) (1.21)

Others

2013 26,662.63 14,327.15 3,697.05 1,634.80 7,003.63

% INC/(DEC) Over Previous Year 9.21 6.04 24.71 (11.18) 14.85

2014 29,163.33 17,106.87 3,578.25 2,090.60 6,387.60

% INC/(DEC) Over Previous Year 9.38 19.40 (3.21) 27.88 (8.80)

2015 31,855.44 18,456.24 3,963.83 2,091.02 7,344.35

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

9.23 7.89 10.78 0.02 14.98

33,673.34 19,777.27 4,014.91 2,269.23 7,611.93

5.71 7.16 1.29 8.52 3.64

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

(7.04) 14.90 (54.86) (28.76) (20.50)

4,203.72 3,242.88 292.93 2.96 664.96

(10.46) (5.25) (40.37) (64.97) (13.93)

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

19.74 47.15 13.09 11.68 20.45

43,142.81 7,579.78 1,876.04 21,568.96 12,118.03

11.46 0.15 (12.44) 15.83 16.82

In Million Pesos % INC/(DEC) Over Previous Year

2012

5,227.99 2,883.03 1,081.31 25.36 1,238.29

NET PREMIUMS

21.78 22.34 21.61 224.86 19.12

2013 6,208.92 4,020.63 977.50 12.41 1,198.39

% INC/(DEC) Over Previous Year 18.76 39.46 (9.60) (51.06) (3.22)

2014 5,050.38 2,978.46 1,088.24 11.86 971.82

% INC/(DEC) Over Previous Year (18.66) (25.92) 11.33 (4.40) (18.91)

2015 4,694.68 3,422.39 491.22 8.45 772.61

In Million Pesos 2012

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

Motor Car Insurance

In Million Pesos

PREMIUMS RETROCEDED TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

Marine Insurance & Aviation

28,683.72 5,359.41 1,928.40 14,048.18 7,347.73

% INC/(DEC) Over Previous Year 8.30 3.43 21.38 6.53 12.54

2013 29,785.83 4,734.25 2,020.52 15,639.35 7,391.73

% INC/(DEC) Over Previous Year 3.84 (11.66) 4.78 11.33 0.60

2014 32,323.43 5,143.42 1,894.53 16,673.29 8,612.20

% INC/(DEC) Over Previous Year 8.52 8.64 (6.24) 6.61 16.51

2017 PIRA FACT BOOK

2015 38,705.58 7,568.76 2,142.45 18,620.93 10,373.43

83

PREMIUMS EARNED 2012

% INC/(DEC) Over Previous Year

27,706.51 5,415.63 1,904.24 13,596.92 6,789.72

12.51 19.06 20.69 9.49 11.66

LOSSES INCURRED TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

29,042.91 5,026.10 1,827.77 14,898.83 7,290.20

% INC/(DEC) Over Previous Year 4.82 (7.19) (4.02) 9.58 7.37

2014 31,291.24 4,986.46 1,973.10 16,037.49 8,294.19

% INC/(DEC) Over Previous Year 7.74 (0.79) 7.95 7.64 13.77

2015

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

14.26 25.89 8.60 9.57 17.69

41,308.01 7,771.38 1,842.57 20,075.17 11,618.89

15.53 23.80 (14.01) 14.24 19.03

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

5.33 (26.72) (12.30) 20.57 4.47

16,886.03 3,549.48 409.03 10,007.27 2,920.25

27.80 71.96 (23.52) 22.77 18.58

35,754.07 6,277.25 2,142.70 17,572.77 9,761.35

In Million Pesos 2012

% INC/(DEC) Over Previous Year

11,071.92 2,766.45

738.83 5,454.27 2,112.36

13.45 14.59 20.55 3.77 43.09

LOSS RATIO %

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

2013

2013 14,219.65 3,882.31 519.00 6,588.27 3,230.06

% INC/(DEC) Over Previous Year 28.43 40.34 (29.75) 20.79 52.91

2014 12,544.29 2,816.65 609.79 6,760.62 2,357.22

% INC/(DEC) Over Previous Year (11.78) (27.45) 17.49 2.62 (27.02)

2015 13,212.83 2,064.15 534.81 8,151.26 2,462.61

LOSS RATIO %

In Million Pesos

2012

2013

2014

2015

2016

39.96 51.08 38.80 40.11 31.11

48.96 77.24 28.40 44.22 44.31

40.09 56.49 30.91 42.16 28.42

36.95 32.88 24.96 46.39 25.23

37.37 45.67 22.20 49.85 25.13

Percentage

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

In Million Pesos

LOSS RATIO % (By Line of Business)

60.00 50.00 40.00 30.00 20.00 10.00 0.00

48.96 40.09

39.96

36.95

2012 2013 2014 2015 2016

60.00 50.00 40.00 30.00 20.00 10.00 0.00

84

37.37

2012

2013

2014

Fire Insurance

Marine Insurance & Aviation

2015

Motor Car Insurance

2017 PIRA FACT BOOK

2016

Others

FINANCIAL HIGHLIGHTS Assets Liabilities Networth

In Million Pesos 2012

% INC/(DEC) Over Previous Year

2013

154,543.34 77,053.90 77,489.44

14.89 18.35 11.73

194,303.27 115,564.50 78,738.77

RISKS WRITTEN ON DIRECT BUSINESS TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

25.73 49.98 1.61

% INC/(DEC) Over Previous Year

2014 194,529.68 109,182.54 85,347.14

0.12 (5.52) 8.39

2015 195,288.50 106,810.83 88,477.66

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

0.39 (2.17) 3.67

197,405.97 96,625.53 100,780.45

1.08 (9.54) 13.90

% INC/(DEC) Over Previous Year

In Million Pesos 2012

% INC/(DEC) Over Previous Year

2013

% INC/(DEC) Over Previous Year

2014

% INC/(DEC) Over Previous Year

2015

% INC/(DEC) Over Previous Year

2016

45,824,257.82 18,907,944.00 4,500,568.97 2,065,319.34 20,350,425.51

22.03 18.66 (11.75) 23.75 37.07

58,670,916.99 30,241,280.66 2,733,541.93 2,658,982.37 23,037,112.03

28.03 59.94 (39.26) 28.74 13.20

67,715,404.33 43,223,801.67 3,607,372.20 2,705,987.35 18,178,243.11

15.42 42.93 31.97 1.77 (21.09)

90,035,913.62 55,139,813.45 7,542,988.84 6,360,771.66 20,992,339.68

32.96 27.57 109.10 135.06 15.48

210,651,942.28 107,474,475.87 8,931,114.44 6,601,569.82 87,644,782.15

% INC/(DEC) Over Previous Year

2014

% INC/(DEC) Over Previous Year

2015

% INC/(DEC) Over Previous Year

2016

29,797,814.32 12,182,728.09 1,422,506.44 2,422,395.32 13,770,184.48

37.47 32.41 (2.84) (4.16) 62.33

48,881,342.38 24,385,891.74 2,025,638.14 6,080,418.55 16,389,393.95

64.04 100.17 42.40 151.01 19.02

138,765,129.68 47,408,869.67 2,430,554.45 6,424,345.46 82,501,360.09

NET RISKS WRITTEN TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

% INC/(DEC) Over Previous Year

133.96 94.91 18.40 3.79 317.51

In Million Pesos 2012

% INC/(DEC) Over Previous Year

2013

21,682,315.92 7,932,766.14 1,444,624.72 2,044,552.48 10,260,372.58

(12.10) 4.44 (35.71) 24.37 (22.16)

21,675,177.98 9,200,884.46 1,464,117.79 2,527,587.04 8,482,588.69

(0.03) 15.99 1.35 23.63 (17.33)

% INC/(DEC) Over Previous Year 183.88 94.41 19.99 5.66 403.38

NETWORTH

Distribution, By Companies Including GSIS

As of Dec. 31, 2016

3% 1%

10B AND Up - 2 Companies 5B to 9.99B - 1 Company 1B to 4.99B - 11 Companies 500M to 999M - 36 Companies 100M to 499M - 20 Companies TOTAL P100,780.45 - 70 Companies

16% 51% 29%

85 2017 PIRA FACT BOOK

OPERATING RESULTS

Premiums Earned

Commission Earned

Other Underwriting Income

Total Underwriting Income

Losses Incurred

Loss Adjustment Expenses

Commision Expenses

Other Underwriting Expenses Total Underwriting Expenses Underwriting Gain/(Loss)

Gross Investment Income

Other Income/(Expense)

Net Income/(Loss) before Income Tax Income Tax

Net Income/(Loss) for the Year

In Million Pesos

2012

% INC/(DEC) Over Previous Year

2013

% INC/(DEC) Over Previous Year

27,706.51 3,026.32 194.88 30,927.71 11,071.92 286.89 8,331.23 2,303.81 21,996.04 8,931.68 2,781.59 803.40 3,272.46 336.28 2,936.18

12.51 0.72 (27.26) 10.86 13.45 1.59 11.23 13.91 12.46 7.11 1.39 (49.55) (30.78) 2.68 (33.27)

29,108.16 3,236.98 208.32 32,553.46 15,323.53 356.03 8,633.26 2,195.39 26,508.21 6,045.26 2,780.83 3,710.18 3,387.34 149.45 3,237.89

5.06 6.96 6.89 5.26 38.40 24.10 3.63 (4.71) 20.51 (32.32) (0.03) 361.81 3.51 (55.56) 10.28

% INC/(DEC) Over Previous Year

2014 31,291.24 3,447.49 361.20 35,099.92 12,544.28 325.33 9,470.02 2,758.67 25,098.29 10,001.63 2,720.23 1,974.10 4,430.87 467.70 5,944.94

7.50 6.50 73.39 7.82 (18.14) (8.62) 9.69 25.66 (5.32) 65.45 (2.18) (46.79) 30.81 212.94 83.61

2015

% INC/(DEC) Over Previous Year

35,754.07 3,832.25 286.53 39,872.85 13,212.74 445.24 10,180.26 2,346.68 26,184.91 13,687.94 2,943.54 655.19 5,781.41 842.74 4,938.66

14.26 11.16 (20.67) 13.60 5.33 36.86 7.50 (14.93) 4.33 36.86 8.21 (66.81) 30.48 80.19 (16.93)

2016 41,308.01 3,564.50 210.98 45,083.49 16,886.03 292.24 10,676.62 3,489.08 31,343.97 13,739.52 4,056.80 1,084.48 6,504.51 605.71 5,898.80

% INC/(DEC) Over Previous Year 15.53 (6.99) (26.37) 13.07 27.80 (34.36) 4.88 48.68 19.70 0.38 37.82 65.52 12.51 (28.13) 19.44

NON-LIFE INSURANCE INDUSTRY STATISTICS Direct Writing Companies, Excluding GSIS PREMIUMS ON DIRECT BUSINESS TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

In Million Pesos 2012

% INC/(DEC) Over Previous Year

46,442.19 15,091.39 4,335.20 14,599.98 12,415.62

12.32 21.64 3.16 8.09 10.53

2013 49,358.44 15,306.64 4,920.47 16,015.15 13,116.19

% INC/(DEC) Over Previous Year 6.28 1.43 13.50 9.69 5.64

2014 54,377.49 18,592.65 4,704.16 17,563.56 13,517.12

% INC/(DEC) Over Previous Year 10.17 21.47 (4.40) 9.67 3.06

2016 Direct Premiums Production

2015 62,706.93 21,515.58 5,664.45 19,657.46 15,869.45

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

15.32 15.72 20.41 11.92 17.40

68,709.04 22,901.37 5,366.25 22,884.49 17,556.93

9.57 6.44 (5.26) 16.42 10.63

26%

Percentage Distribution by Line of Business

Others

Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

86

33%

Fire Insurance

8%

Marine Insurance & Aviation

33%

Motor Car Insurance

2017 PIRA FACT BOOK

PREMIUMS ASSUMED

In Million Pesos

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

2012

% INC/(DEC) Over Previous Year

2013

% INC/(DEC) Over Previous Year

8,190.25 4,061.59 1,396.06 734.44 1,998.17

3.65 12.98 12.57 (19.17) (7.42)

9,605.61 5,175.32 1,531.52 691.61 2,207.17

17.28 27.42 9.70 (5.83) 10.46

GROSS PREMIUMS

2014 8,708.29 4,257.40 1,659.10 652.74 2,139.05

% INC/(DEC) Over Previous Year

% INC/(DEC) Over Previous Year

2015

(9.34) (17.74) 8.33 (5.62) (3.09)

8,289.69 4,789.02 719.82 541.40 2,239.46

% INC/(DEC) Over Previous Year

2016

(4.81) 12.49 (56.61) (17.06) 4.69

8,124.19 4,816.58 565.93 309.83 2,431.86

(2.00) 0.58 (21.38) (42.77) 8.59

In Million Pesos

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

2012

% INC/(DEC) Over Previous Year

2013

% INC/(DEC) Over Previous Year

54,632.44 19,152.97 5,731.26 15,334.42 14,413.79

10.93 19.69 5.31 6.37 7.63

58,964.06 20,481.96 6,451.99 16,706.75 15,323.35

7.93 6.94 12.58 8.95 6.31

2014 63,085.79 22,850.05 6,363.26 18,216.30 15,656.17

% INC/(DEC) Over Previous Year

2015

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

6.99 11.56 (1.38) 9.04 2.17

70,996.62 26,304.59 6,384.26 20,198.86 18,108.91

12.54 15.12 0.33 10.88 15.67

76,833.23 27,717.95 5,932.18 23,194.32 19,988.78

8.22 5.37 (7.08) 14.83 10.38

Gross Premiums from Direct Writing Companies Excluding GSIS 30,000

27,717.95 26,304.59

25,000 20,000

23,194.32

22,850.05 20,198.86

20,481.96 19,152.97

18,216.30

In Million Pesos

16,706.75

15,000

18,108.91 15,656.17

15,323.35

15,334.42

19,998.78

14,413.79

10,000 5,000

6,384.26

6,363.26

6,451.99

5,731.26

5,932.18

0 2012

2013 Fire Insurance

2014

Marine Insurance & Aviation

2015 Motor Car Insurance

2017 PIRA FACT BOOK

2016 Others

87

PREMIUMS CEDED

In Million Pesos % INC/(DEC) Over Previous Year

2012 TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

22,190.30 11,746.05 2,914.51 1,543.87 5,985.87

PREMIUMS RETROCEDED

% INC/(DEC) Over Previous Year

5,227.99 2,883.03 1,081.31 25.36 1,238.29

NET PREMIUMS TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

21.78 22.34 21.61 224.86 19.12

2012

% INC/(DEC) Over Previous Year

27,214.15 4,523.90 1,735.44 13,765.19 7,189.64

9.80 7.24 24.28 6.99 14.05

26,998.88 15,224.63 3,452.36 1,988.38 6,333.50

% INC/(DEC) Over Previous Year 10.48 21.19 (5.34) 48.61 (8.09)

2015 30,664.16 17,427.29 3,983.22 1,952.42 7,301.22

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

13.58 14.47 15.38 (1.81) 15.28

32,043.33 18,304.79 3,891.12 2,269.23 7,578.20

4.50 5.04 (2.31) 16.23 3.79

2013 6,208.92 4,020.63 977.50 12.41 1,198.39

% INC/(DEC) Over Previous Year 18.76 39.46 (9.60) (51.06) (3.22)

2014 5,050.38 2,978.46 1,088.24 11.86 971.82

% INC/(DEC) Over Previous Year (18.66) (25.92) 11.33 (4.40) (18.91)

2015

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

4,694.68 3,422.39 491.22 8.45 772.61

(7.04) 14.90 (54.86) (28.76) (20.50)

4,203.72 3,242.88 292.93 2.96 664.96

(10.46) (5.25) (40.37) (64.97) (13.93)

2013 28,316.27 3,898.74 1,827.55 15,356.35 7,233.63

% INC/(DEC) Over Previous Year 4.05 (13.82) 5.31 11.56 0.61

2014 31,036.53 4,646.97 1,822.65 16,216.05 8,350.86

% INC/(DEC) Over Previous Year 9.61 19.19 (0.27) 5.60 15.44

2015

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

35,637.79 5,454.91 1,909.82 18,237.99 10,035.07

14.83 17.39 4.78 12.47 20.17

40,586.18 6,170.29 1,748.13 20,922.13 11,745.63

13.89 13.11 (8.47) 14.72 17.05

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

11.63 10.74 0.16 10.05 17.94

38,618.83 6,104.38 1,743.15 19,516.23 11,255.06

15.35 25.37 (8.86) 13.28 18.88

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

12.73 1.54 (8.26) 19.18 10.02

16,720.00 3,633.61 451.28 9,819.19 2,815.93

26.23 60.46 (15.50) 22.77 14.99

In Million Pesos 2012

% INC/(DEC) Over Previous Year

26,009.03 4,337.21 1,704.93 13,332.87 6,634.01

12.09 14.62 21.72 9.61 13.30

LOSSES INCURRED TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

10.13 6.95 25.13 (13.34) 15.13

2014

In Million Pesos

PREMIUMS EARNED TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

24,438.86 12,562.59 3,646.94 1,337.99 6,891.34

% INC/(DEC) Over Previous Year

In Million Pesos 2012

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

10.00 24.61 (7.68) 0.13 (1.02)

2013

2013 27,345.42 3,947.68 1,628.47 14,634.78 7,134.49

% INC/(DEC) Over Previous Year 5.14 (8.98) (4.48) 9.76 7.54

2014 29,989.52 4,396.85 1,909.58 15,655.84 8,027.25

% INC/(DEC) Over Previous Year 9.67 11.38 17.26 6.98 12.51

2015 33,478.27 4,869.04 1,912.62 17,228.92 9,467.69

In Million Pesos 2012

% INC/(DEC) Over Previous Year

10,421.45 2,699.71

702.27 5,354.28 1,665.19

12.56 28.00 37.04 2.05 19.79

2013 13,569.17 3,815.57 482.43 6,488.28 2,782.90

% INC/(DEC) Over Previous Year 30.20 41.33 (31.30) 21.18 67.12

2014 11,749.42 2,230.16 582.17 6,711.20 2,225.88

% INC/(DEC) Over Previous Year (13.41) (41.55) 20.67 3.44 (20.02)

88 2017 PIRA FACT BOOK

2015 13,245.52 2,264.43 534.08 7,998.17 2,448.84

LOSS RATIO %

2012

2013

2014

2015

2016

40.07 62.25 41.19 40.16 25.10

49.62 96.65 29.62 44.33 39.01

39.18 50.72 30.49 42.87 27.73

39.56 46.51 27.92 46.42 25.87

43.29 59.52 25.89 50.31 25.02

LOSS RATIO % 60 50 40 30 20 10 0

Percentage

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

In Million Pesos

LOSS RATIO % (By Line of Business)

49.62 40.07

43.29 39.18

39.56

2011 2012 2013 2014 2015

60.00 50.00 40.00 30.00 20.00 10.00 0.00 2012

2013

Fire Insurance

Marine Insurance & Aviation

FINANCIAL HIGHLIGHTS Assets Liabilities Networth

2015

2016

Motor Car Insurance

Others

In Million Pesos 2012

% INC/(DEC) Over Previous Year

2013

128,445.92 70,323.03 58,122.89

14.45 19.34 9.16

159,062.70 100,723.02 58,339.68

23.84 43.23 0.37

RISKS WRITTEN ON DIRECT BUSINESS TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

2014

% INC/(DEC) Over Previous Year

2014 156,973.55 94,009.91 62,963.65

% INC/(DEC) Over Previous Year (1.31) (6.66) 7.93

2015 161,797.35 97,225.27 64,572.07

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

3.07 3.42 2.55

162,440.52 88,396.13 74,044.39

0.40 (9.08) 14.67

% INC/(DEC) Over Previous Year

2016

% INC/(DEC) Over Previous Year

In Million Pesos 2012

% INC/(DEC) Over Previous Year

2013

% INC/(DEC) Over Previous Year

2014

% INC/(DEC) Over Previous Year

2015

44,920,384.99 18,163,399.77 4,438,403.29 2,065,319.34 20,253,262.59

54.88 13.98 (12.97) 23.75 36.41

57,767,044.16 29,496,736.42 2,671,376.25 2,658,982.37 22,939,949.11

19.63 62.40 (39.81) 28.74 13.27

66,586,032.49 42,361,140.61 3,528,794.57 2,606,012.98 18,090,084.33

28.60 43.61 32.10 (1.99) (21.14)

88,306,997.14 53,723,652.80 7,474,456.79 6,241,472.42 20,867,415.14

15.27 209,448,569.05 26.82 106,627,551.35 111.81 8,864,904.79 139.50 6,510,517.95 15.35 87,445,594.96

33.59 98.47 18.60 4.31 319.05

89 2017 PIRA FACT BOOK

NET RISKS WRITTEN TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

In Million Pesos

2012

% INC/(DEC) Over Previous Year

2013

% INC/(DEC) Over Previous Year

2014

% INC/(DEC) Over Previous Year

2015

% INC/(DEC) Over Previous Year

2016

21,275,959.29 7,645,422.09 1,414,225.27 2,044,552.48 10,171,759.45

(13.75) 0.65 (37.06) 24.37 (22.83)

21,268,821.34 8,913,540.41 1,433,718.34 2,527,587.04 8,393,975.56

(0.03) 16.59 1.38 23.63 (17.48)

29,226,562.15 11,783,934.96 1,384,008.70 2,372,408.13 13,686,210.36

37.42 32.20 (3.47) (6.14) 63.05

47,643,813.11 23,381,153.75 1,986,292.78 6,007,394.93 16,268,971.63

63.02 98.42 43.52 153.22 18.87

137,993,110.84 46,939,799.57 2,406,068.88 6,333,293.60 82,313,948.78

189.63 100.76 21.13 5.42 405.96

10B AND Up - 1 Companies 5B to 9.99B - 1 Company 1B to 4.99B - 11 Companies 500M to 999M - 36 Companies 100M to 499M - 20 Companies

NETWORTH

Distribution, By Companies Excluding GSIS

As of Dec. 31, 2016

2%

29%

% INC/(DEC) Over Previous Year

TOTAL P74,0044.39 - 69 Companies

1%

16% 52%

OPERATING RESULTS

Premiums Earned

Commission Earned

Other Underwriting Income

Total Underwriting Income

Losses Incurred

Loss Adjustment Expenses

Commision Expenses

Other Underwriting Expenses Total Underwriting Expenses Underwriting Gain/(Loss)

Gross Investment Income

Other Income/(Expense)

Net Income/(Loss) before Income Tax Income Tax

Net Income/(Loss) for the Year

In Million Pesos 2012

% INC/(DEC) Over Previous Year

2013

% INC/(DEC) Over Previous Year

26,009.03 2,718.39 186.49 28,913.91 10,421.45 286.89 8,329.22 1,703.90 20,743.65 8,170.26 2,439.43 871.97 2,733.73 336.28 2,397.45

12.09 (2.83) (15.05) 10.27 12.56 1.59 11.23 13.05 11.88 6.38 0.17 (0.13) (14.14) 2.68 (16.07)

27,345.42 2,924.08 200.59 30,470.09 13,569.17 304.86 8,631.81 1,815.45 24,321.29 6,148.80 2,285.22 1,531.41 1,088.36 149.45 938.91

5.14 7.57 7.56 5.38 30.20 6.27 3.63 6.55 17.25 (24.74) (6.32) 75.63 (60.19) (55.56) (60.84)

2014 29,989.52 3,218.39 359.75 33,567.67 11,749.41 302.02 9,469.26 2,484.38 24,005.08 9,562.59 2,083.26 910.73 2,736.35 467.70 2,268.65

% INC/(DEC) Over Previous Year 9.67 10.07 79.35 10.17 (13.41) (0.93) 9.70 36.85 (1.30) 55.52 (8.84) (40.53) 151.42 212.94 141.63

90 2017 PIRA FACT BOOK

2015 33,478.27 3,573.67 289.43 37,341.36 13,245.43 429.09 10,180.26 2,343.26 26,198.03 11,143.33 2,082.98 962.18 3,389.82 842.74 2,547.08

% INC/(DEC) Over Previous Year 11.63 11.04 (19.55) 11.24 12.73 42.07 7.51 (5.68) 9.14 16.53 (0.01) 5.65 23.88 80.19 12.27

2016 38,618.83 3,419.02 237.82 42,275.67 16,720.00 272.64 10,676.62 1,858.96 29,528.22 12,747.45 3,168.60 1,079.82 3,701.11 605.71 3,095.40

% INC/(DEC) Over Previous Year 15.35 (4.33) (17.83) 13.21 26.23 (36.46) 4.88 (20.67) 12.71 14.40 52.12 12.23 9.18 (28.13) 21.53

Directory of PIRA Members AIG PHILIPPINES INSURANCE, INC.

47th Floor, PBCOM Tower 6795 Ayala Avenue cor. V.A. Rufino Street, Makati City Tel. No/s. 815-3000; 878-5453; 878-5552 Fax Nos. 815-3710; 878-5450; 878-5594/95

ALLIEDBANKERS INSURANCE CORP.

17th Floor, Federal Tower Condominium Dasmarinas Street, cor. Muelle de Binondo, Binondo, Manila Tel. No/s.243-0077; 245-2886 Fax No. 241-2549 E-Mail: alliedbankers.insurance@gmail.com

ALPHA INSURANCE & SURETY CO., INC.

4th & 5th Floors, Alpha Insurance Centre, No. 1025 San Marcelino Street, Ermita, Manila Tel. No/s. 525-1301 Fax No. 404-0320; 522-6131 E-Address : alpha@alphainsurance.com.ph alphainsurance@gmail.com

ASIA UNITED INSURANCE, INC.

Room 777, 7th Floor BPI Office Condominium, Plaza Cervantez, Binondo, Manila Tel. No/s. 242-1688 loc. 108 Fax No. 245-3255 E-Mail: asiaunited@auii.com.ph

ASIAN LIFE & GENERAL ASSURANCE CORP. Ground Floor, to 3rd Floor, Morning Star Center, 347 Sen. Gil Puyat Avenue, 1200 Makati City Tel. No/s. 890-1758 Fax No. 895-8519 & 895-8524 E-mail: helpdesk@asianlife.com.ph contact@asianlife.com.ph

BANKERS ASSURANCE CORP.

108 Paseo de Roxas, Legaspi Vill., Makati City Tel. No/s. 812-7777 Fax No. 817-1461

CHARTER PING AN INSURANCE CORP. Ground Floor, Skyland Plaza Sen Gil Puyat Avenue, Makati City Tel. No/s. 580-6800 Fax No. 842-1220

CIBELES INSURANCE CORP.

6th Floor, State Centre Building 333 Juan Luna Street Binondo, Manila Tel. No/s. 242-1631 to 40 Fax No. 242-0718 E-Mail:info@cibeles.com.ph

Room 604 Doña Felisa Syjuco Bldg.

1872 Remedios Street cor. Taft Ave. 1004 Malate Manila Tel. No/s. 244-7270; 241-2478; 567-4678; 2412739; 567-4675; 242-8888 loc.290 Fax No. 567-4675; 567-4676; 241-2449; 2413155; 567-4675; 242-2222; 241-2750 E-Mail: bac@bankersassurance.com.ph

CLIMBS LIFE AND GENERAL INSURANCE COOPERATIVE

AFP GIC Building, Col. B. Serrano Road, cor. EDSA, Camp Aguinaldo, Quezon City Tel. No/s. 911-4676; 421-2286; 911-9369;

911-9888 loc.316 Fax No. 913-4358; 911-3149 E-Mail: info@afpgen.com

BF GENERAL INSURANCE COMPANY, INC.

COMMONWEALTH INSURANCE COMPANY

ASIA INSURANCE (PHILIPPINES) CORP.

11th, 14th & 16th Floor, Ayala Life-FGU Center 6811 Ayala Avenue, Makati City Tel. No/s. 840-90-00 Fax No. 840-95-99 E-Mail: insure@bpims.com

ARMED FORCES & POLICE GENERAL INSURANCE CORP. (AFP GEN. INS. CORP.)

15th Floor, Tytana Plaza Bldg., Plaza Lorenzo Ruiz, Binondo, Manila Tel. No/s. 241-5201; 845-3223; 243-3213; 243-3219 Fax No. 241-6257; 243-3216; 888-2309 E-Mail: aipc@asiains.com.ph

Room 403-B Vicente Madrigal Building 6793 Ayala Avenue, Makati City Tel. Nos. 817-2002 to 05 E-mail: info@bfgeneral.com

BPI/MS INSURANCE CORP.

CARD PIONEER MICROINSURANCE INC. (formerly: Pioneer Asia Ins. Corp.)

3rd Floor, Pioneer House – Makati

2017 PIRA FACT BOOK

Climbs Building, Zone 5, National Highway Bulua, 9000 Cagayan de Oro City Tel. No/s. (08822) 738-738 (088) 856-1355 Fax No. (08822) 738-886 E-Mail: head_office@climbs.com head_office@climbs.coop 10th & 19th Floors, 1st BDO Plaza 8737 Paseo de Roxas, Makati City Tel. No/s.818-7626 to 31 Fax No. 813-8575 E-Mail: info@cic.com.ph

CORPORATE GUARANTEE & INSURANCE CO., INC.

2nd Floor, CGIC Building Jose Abad Santos Avenue, City of San Fernando, Pampanga Tel. No/s. (045) 961-5621 • (045) 961 2222 Fax No.: (045) 963-4991 • Manila: 638-6901 E-mail: clientcare@cgic.com.ph

91

Directory of PIRA Members COUNTRY BANKERS INSURANCE CORP. County Bankers Center 648 T.M. Kalaw St., Ermita Manila Tel. No/s.524-1886 to 89; 524-0621 Fax No. 523-2211 E-Mail: cbic@countrybankers.com

EMPIRE INSURANCE COMPANY

2nd Floor, B & P Building 843 A. Arnaiz Avenue, Legaspi Vill., Makati City Tel. No/s. 815-9561 to 65; 812-2245 Fax No. 815-2599

FIRST INTEGRATED BONDING & INSURANCE CO., INC.

2nd Floor, Rm 201 First Midland Offices Condo, 109 Gamboa Street, Legaspi Village, Makati City Tel. No/s. 818-0360; 813-0304 Fax No. 815-2695 Email - firstintegratedbonding@yahoo.com.ph

FIRST NATIONWIDE ASSURANCE CORP.

Yuchengco Tower II, Leviste Street, Makati City Tel. No/s. 737-3625; 737-3635; 844-2164; 817-4630 Fax No. 867-3483

FORTUNE GENERAL INS., CORP. 4th Floor, Citystate Center 709 Shaw Boulevard, Pasig City Tel. No/s. 706-3959; 706-4013 Fax No. 706-3986

FPG INSURANCE COMPANY, INC.

6th Floor, Zuellig Bldg., Makati Ave., cor. Paseo De Roxas, Makati City Tel. No/s. 859-1214; 859-1247; 869-1206; 859-1243; 859-1225 Fax No. 811-5108

92

GOVERNMENT SERVICE INS. SYSTEM General Insurance Group, Level 7 GSIS Building, Financial Center Roxas Blvd., Pasay City Tel. No/s.479-3510; 473-3512 Fax No. 859-0314

INSURANCE COMPANY OF NORTH AMERICA (CHUBB CO.) 24th Floor, Zuellig Building Makati Ave. Cor. Paseo de Roxas, Makati City Tel. No/s. 849-6021 Fax No. 325-1675

INTRA-STRATA ASSURANCE CORPORATION 8th Floor, 88 Corporate Center Sedeno cor. Valero Streets Salcedo Village, Makati City Tel. No/s.817-3031/34 Fax No. 817-2193 E-Mail: underwriting@intrastrata.com

INVESTORS ASSURANCE CORP.

Unit 1-20th Floor, BDO Plaza Paseo de Roxas near cor. Makati Ave., Makati City Tel. No/s.822-4000; 822-5000; 891-0996 Fax No. 891-1200 E-Mail: inquiry@investors-assurance.com

LIBERTY INSURANCE CORP.

JCS Building, 119 Dela Rosa cor.

Carlos Palanca Steets, Legaspi Village, teevvMakati City Tel. No/s. 819-1961 Fax No.819-5217

MAA GENERAL ASSURANCE PHILS.,INC.

9th & 10th Floor, 1001 Pearlbank Centre 146 Valero Street, Salcedo Village, Makati City Tel. No/s. 867-2452 Fax No.893-2230 2017 PIRA FACT BOOK

MALAYAN INSURANCE COMPANY

Yuchengco Tower, 500 Quintin Paredes Street, Binondo, Manila Tel. No/s. 241-2744; 244-7270; 241-2739;

243-0943; 242-8888 loc. 232 Fax No. 241-2449; 241-2744; 241-2449; 242-2222;241-1489; 241-2750 E-Mail: malayan@malayan.com, malayan_postmaster@yahoo.com

MAPFRE INSULAR INSURANCE CORP. Acacia Ave. Madrigal Business Park, Ayala Alabang, Muntinlupa City Tel. No/s. 876-4412; 876-4499 Fax No. 876-4322; 876-4399

MERCANTILE INS. CO., INC.

2ND Floor, Mercantile Insurance Building, General Luna cor. Beaterio streets, Intramuros, Manila Tel. No/s. 527-0667 Fax No. 627-0607

METROPOLITAN INS. CO., INC.

3rd Floor, Athenaeum Building 160 L.P. Leviste Street, Salcedo Vill., Makati City Tel. No/s. 867-2888 Fax No. 816-2294 E-Mail: metgenco@metins.net

MILESTONE GUARANTY & ASSURANCE CORP. 2654 Leveriza near the corner of Pablo Ocampo Street, Malate, Manila Tel. No/s. 353-8024 Fax No. 523-7775 E-Mail: milestoneguaranty@yahoo.com info@milestoneguaranty.com

Directory of PIRA Members NATIONAL REINSURANCE CORP. OF THE PHILIPPINES 31ST Floor, Ayala Life-FGU Center 6811 Ayala Avenue, Makati City Tel. No/s. 988-7402 Fax No.988-7457 E-Mail: nrcp@nrcp.com.ph

NEW INDIA ASSURANCE CO. LTD. 405 ITC Building 337 Sen. Gil Puyat Ave., Makati City Tel. No/s. 899-3772; 899-9999 Fax No. 899-3844 E-Mail: newindiamanila@pldtdsl.net

NORTHWEST INSURANCE & SURETY CO., INC.

NISCO Building, 272 Dasmarinas Street, Binondo, Manila Tel. No/s. 242-9330; 242-9331; 2429334; 242-9342; 244-6289; 244-6292 Fax No. 242-9337 E-Mail: northwest_insurance@pldtdsl.net northwest@gmail.com

ORIENTAL ASSURANCE CORP. 2nd Floor, OAC Building 27 San Miguel Avenue, Ortigas Center, Pasig City Tel. No/s. 631-7851 Fax No. 631-7815

PACIFIC CROSS INSURANCE, INC.

Blue Cross Center, 8000 Makati Avenue cor.

P. Burgos Street, Makati City Tel. No/s. 899-8001 loc. 8548 Fax No.899-5392; 899-9618

PACIFIC UNION INSURANCE CO. 2401 Antel Corporate Centre 121 Valero Street, Salcedo Village Makati City

Tel. No/s. 845-1220; 845-1033/37 loc.122 Fax No. 845-3272 E-Mail: pacificunioninsco@yahoo.com admin@PUICinsurance.com

PARAMOUNT LIFE & GENERAL INSURANCE CORP. 15th Floor, Sage House 110 V.A. Rufino St., Legaspi Vill.

Makati City Tel. No/s. 772-9200 Fax No. 813-1140 E-Mail: insure@paramount.com.ph

PEOPLE’S GENERAL INS. CORP.

People’s Building, 420 Calle Magallanes, Intramuros, Manila Tel. No/s. 527-7611 to 15 Fax No. 527-6555 E-Mail: info@peoplesgen.com.ph

PERLA COMPANIA DE SEGUROS, INC.

2nd Floor, Perla Compania de Seguros Mansion, 117 Carlos J. Palanca, Jr. Street, Legaspi Village, Makati City Tel. No/s. 892-9546 to 50 Fax No. 892-9548 to 50 E-Mail: ho@perlainsurance.com

PETROGEN INSURANCE CORP. SMC Head Office Complex 40 San Miguel Avenue, Mandaluyong City Tel. No/s. 884-9200 Fax No. 884-0959 E-mail: assy@petron.com

PGA SOMPO INSURANCE, CORP.

5TH Floor, Corinthian Plaza, 121 Paseo de Roxas, Legaspi Village, Makati City Tel. No/s. 811-34-17; 810-49-16 Fax No. 811-32-78 2017 PIRA FACT BOOK

PHILIPPINE BRITISH ASSURANCE CO., INC. Morning star Center Building 347 Sen. Gil Puyat Avenue Extension, Makati City Tel. No/s. 890-4051 to 57 Fax No. 897-3588; 890-4058 E-mail: info@philbritish.com

PHILIPPINES FIRST INSURANCE COMPANY, INC.

7th Floor, iACADEMY Building 6764 Ayala Avenue, Makati City Tel. No/s. 892-8888 Fax No.814-0601; 814-0582 E-mail: customer@philippinesfirst.com.ph

PIONEER INSURANCE & SURETY CORPORATION

Pioneer House Makati 108 Paseo De Roxas, Lagaspi Village, Makati City Tel. No/s. 812-7777 Fax No. 817-1461 E-Mail: info@pioneer.com.ph

PIONEER INTERCONTINENTAL INSURANCE CORP.

Pioneer House Makati 108 Paseo De Roxas, Lagaspi Village, Makati City Tel. No/s. 812-7777 Fax No. 817-1461 E-Mail: info@pioneer.com

PLARIDEL SURETY & INSURANCE CO.

Suite 2502, 25th Floor, 88 Corporate Center cor. Sedeno & Valero Streets Salcedo Village, Makati City Tel. No/s. 889-6101 to 03; 752-1503 Fax No.752-1504 E-mail:plaridel_main@yahoo.com

93

Directory of PIRA Members PNB GENERAL INSURERS CO., INC.

RELIANCE SURETY & INSURANCE CO., INC.

2nd Floor, PNB Financial Center, Pres. D. Macapagal Blvd., Pasay City Tel. No/s. 832-0312 Fax No. 832-0313

8th Floor, G.A. Cu-Unjieng Center 208 Dasmarinas Street, Binondo, Manila Tel. No/s. 243-0261 to 70 Fax No. 241-6172 Email: reliance_surety@rsi-insure.com

PREMIER INSURANCE & SURETY CORP.

REPUBLIC SURETY & INSURANCE CO., INC.

Suite 702, Federal Tower Center Dasmarinas Street, Binondo Manila Tel. No/s. 243-0181 to 88 Fax No. 242-2162; 243-0170 Email: info@thepremier.com.ph

PRUDENTIAL GUARANTEE & ASSURANCE, INC.

Coyiuto House 119 C. Palanca Jr., Street, Legaspi Village, Makati City Tel. No/s. 810-4916 to 35 Fax No. 819-2991 E-Mail: coyiutohouse@pga.com.ph pgainfo@prudentialguarantee.com

QBE SEABOARD INSURANCE (Philippines), Inc.

16th Floor, BDO Equitable Tower 8751 Paseo de Roxas, Makati City Tel. No/s. 224-4040 Fax No.224-4044

R & B INSURANCE CORP.

Unit 203 East Side Condominium Brgy Pinyahan Central District Diliman, Quezon City Tel. No/s. 2874389; 2859104 Fax. No. Email: rbinsure@rbinsure.com

7th Floor, The Rockwell Business Center Ortigas Avenue, Pasig City Tel. No/s. 470-7742 Fax No. 470-3027

SGI PHILS. GENERAL INSURANCE CO., INC. (formerly: Monarch Ins. Co., Inc.) 15TH Floor, Citibank Tower 8741, Paseo de Roxas Street Makati City Tel. No/s. 848-0188 Fax No. 752-2200 E-mail: info@sgiphils.com.ph

STANDARD INSURANCE CO., INC. 28th Floor, Petron Mega Plaza Bldg.

Sen. Gil Puyat Avenue, Makati City Tel. No/s. 988-6306; 988-6340; 988-6338; 988-6308; 988-6314; 988-6358 Fax No. 988-6330

STARR INTERNATIONAL INSURANCE (ASIA) LTD.

Unit 5, 23rd Floor, Tower 2, The Enterprise Center, 6766 Ayala Avenue cor. Paseo de Roxas, Legaspi Village, Makati City Tel. No/s. 689-6619 Fax No. 689-6630

STERLING INSURANCE CO., INC.

94

6th Floor, Zeta II Annex Bldg., 191 Salcedo Street, Legaspi Village, Makati City

2017 PIRA FACT BOOK

Tel. No/s. 893-0025 and 893-0026 Fax No. 759-2399; 892-3794; 759-2886 E-mail: insure@sterling-insurance.com.ph

STRONGHOLD INSURANCE COMPANY, INC. 17th Floor, Security Bank Centre 6776 Ayala Avenue, Makati City Tel. No/s. 891-1329 to 37 Fax No. 891-1383; 891-1326

TRAVELLERS INSURANCE & SURETY CORP. 10th Floor, G.E. Antonio Building T.M. Kalaw cor. J. Bocobo Streets Ermita, Manila Tel. No/s.524-0173 Fax No. 521-4931

UCPB GENERAL INSURANCE CO., INC. (UCPB GEN) 5th Floor, UCPB Building 7907 Makati Avenue, Makati City Tel. No/s. 811-1788 Fax No. 403-7100; 811-3333; 406-7113; 403-7091; 403-7106 E-Mail: ucpbgen@ucpbgen.com

VISAYAN SURETY & INSURANCE CORP.

Unit 1403 Keppel Center, Samar Loop cor. Card. Rosales Ave., Cebu Business Park, Cebu City Tel. No/s. Cebu: (032) 231-1627; 415-8287 Manila: 242-2456; 242-2486 Fax No. C ebu: (032) 415-8287 Manila: 242-6301 E-Mail: vsurety@yahoo.com

WESTERN GUARANTY CORPORATION

Suite 508, BPI Office Condominium Building, Plaza Cervantes, Binondo, Manila Tel. No/s. 241-7401 to 07 Fax No. 242-0789 E-Mail: westguar@pldtdsl.net

2017 PIRA Committees PUBLIC RELATIONS (PR) COMMITTEE

FINANCE COMMITTEE NAME

COMPANY

Mr. David P. Mercado, Jr., Chairman Ms. Rebecca B. Dela Cruz Ms. Herminia S. Jacinto Ms. Marcelina F. Valles Mr. Erwin V. Toribio Ms. Alegria R. Castro Mr. Jeffrey R. Lacson Ms. Merlina P. Mendoza Mr. Santino U. Sontillano Mr. Wilfredo V. Morales Mr. Rogelio J. Concepcion Ms. Agnes C. Silaya Ms. Shirley F. Dela Cruz

Milestone Guaranty & Assurance Corp.

Alliedbankers Insurance Corp.

KRM Reins. Brokers Phils., Inc. PIRA Finance Committee Prudential Guarantee & Assurance Inc. Association of Insurance Accountants of the Phils.

QBE Seaboard Insurance BPI/MS Insurance Corp.

National Reinsurance Corp. of the Phils.

Pioneer Insurance & Surety Corp.

PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

INFORMATION TECHNOLOGY (IT) COMMITTEE NAME

COMPANY

Mr. Andrew Dee Co, Chairman Mr. David P. Mercado, Jr. Mr. Andres O. Llamas Ms. Ma. Beatriz A. Adversalo Mr. Rogelio M. Ancheta, Jr. Mr. Alvin M. Dela Cruz Mr. Jose C. dela Cruz Mr. Rogelio J. Concepcion Mr. Jerry L. Garchitorena Ms. Marilou C. Serrano

Reliance Surety & Insurance Co., Inc. Milestone Guaranty & Assurance Corp.

Paramount Life & Gen. Insurance Corp.

Malayan Insurance Co., Inc. AIG Philippines Insurance Inc. FPG Insurance Co., Inc. MCIS Project Manager PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

EDUCATION COMMITTEE NAME Mr. Armand M. Pesigan, Chairman Mr. Michael F. Rellosa Mr. Jose G. Banzon, Jr. Ms. Herminia S. Jacinto Ms. Melinda A. Natividad Mr. Antonio Roderick B. Cabusao Mr. Januario C. Aliwalas Mr. Rogelio J. Concepcion Ms. Agnes C. Silaya Ms. Marilou C. Serrano

COMPANY Pioneer Insurance & Surety Corp.

Fortune General Insurance Corp.

JLT Re Philippines KRM Reins. Brokers Phils., Inc. BPI/MS Insurance Corp.

Liberty Insurance Corp.

Insurance Institute for Asia & the Pacific PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

NAME

COMPANY

Mr. Michael F. Rellosa, Chairman Ms. Rebecca B. Dela Cruz Ms. Melinda A. Natividad Mr. Francisco D. Papa, Jr. Atty. April Raine B. Morales Mr. Antonio Roderick B. Cabusao Mr. Rogelio J. Concepcion Ms. Agnes C. Silaya Ms. Marilou C. Serrano Mr. Junep Ocampo, Resource Person

Fortune General Insurance Corp.

Alliedbankers Insurance Corp.

BPI/MS Insurance Corp.

FPG Insurance Co., Inc. PLARIDEL Surety & Insurance Co. Liberty Insurance Corp.

PIRA. Inc., General Manager PIRA, Inc. PIRA, Inc. Right Media

AUDIT COMMITTEE NAME

COMPANY

Ms. Rebecca B. Dela Cruz, Chairperson Alliedbankers Insurance Corp.

Ms. Claire N. Chua Western Guaranty Corp.

Mr. Erwin V. Toribio Prudential Guarantee & Assurance Inc. Ms. Alegria R. Castro Association of Insurance Accountants of the Phils.

Mr. Rogelio J. Concepcion PIRA. Inc., General Manager Ms. Agnes C. Silaya PIRA. Inc. Ms. Shirley F. Dela Cruz PIRA. Inc.

LEGISLATION/GOVERNMENT LIAISON & LEGAL COMMITTEE NAME Ms. Rebecca B. Dela Cruz, Chairperson Atty. Victoria B. Roman Mr. Jose G. Banzon, Jr. Atty. Ma. Luisa Cecilia E. Garcia Atty. Noel A. Beltran Atty. Francisco M. Nob Atty. Ma. Patricia E. Foria Atty. Francisco J. Farolan/ Atty. Martin Rosendo Campos Mr. Rogelio J. Concepcion Ms. Agnes C. Silaya Mr. Alexander D. Pablo Ms. Shirley F. Dela Cruz

COMPANY Alliedbankers Insurance Corp.

R & B Insurance Corp.

JLT Re Philippines Charter Ping An Insurance Corp.

Investors Assurance Corp.

UCPB General Insurance Co., Inc. Insurance Co. of North America Malayan Insurance Co., Inc. PIRA. Inc., General Manager PIRA. Inc. PIRA. Inc. PIRA. Inc.

95 2017 PIRA FACT BOOK

TECHNICAL COMMITTEE NAME

COMPANY

Mr. Joselito C. Bantayan, Co-Chair, Bankers Assurance Corp.

Technical Committee Mr. Arturo B. Reyes, Co-Chair Technical Committee & MAA General Assurance Phils., Inc. Chair Sub-Committee on Motor Car Insurance Mr. Joel G. Libo-on, Chair, Sub-Com UCPB General Insurance Co., Inc. on Fire & Engineering Mr. Kent S. Cotoco, Chair, Sub-Com on Marine Oriental Assurance Corp.

Mr. Alberto C. Santos, Chair, Sub-Com on Casualty BPI/MS Insurance Corp.

Ms. Melinda A, Natividad, Chairperson, BPI/MS Insurance Corp.

Sub-Com on Surety Business PIRA, Inc., General Manager Mr. Rogelio J. Concepcion PIRA, Inc. Mr. Alexander D. Pablo PIRA, Inc. Ms. Marilou C. Serrano

TECHNICAL SUB-COMMITTEE ON FIRE & ENGINEERING NAME

COMPANY

Mr. Joel G. Libo-on, Chairman Mr. Redentor D. Magat Mr. Armand M. Pesigan Mr. Manuel C. Quijano Mr. Edwin V. Salvan Ms. Eden R. Tesoro Mr. Joel Z. Belardo Mr. Rogelio J. Concepcion Mr. Alexander D. Pablo Ms. Marilou C. Serrano

UCPB General Insurance Co., Inc. Fortune General Insurance Corp.

Pioneer Insurance & Surety Corp.

Lockton Insurance and Reinsurance Brokers, Inc. Charter Ping An Insurance Corp.

Malayan Insurance Co., Inc. Prudential Guarantee & Assurance, Inc PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

TECHNICAL SUB-COMMITTEE ON MOTOR CAR INSURANCE MATTERS NAME Mr. Arturo B. Reyes, Chairman Mr. Reynaldo B. Fong Mr. Danilo B. Bariring Mr. Cleto D. Obello, Jr. Ms. Melinda A. Natividad Atty. Leo-Jon P. Ramos Mr. Christopher Y. Marquez Mr. Alexander L. Reyes Ms. Vilma D. Dollentas Atty. Fortunato D. Peralta Mr. Rogelio J. Concepcion Mr. Jaycee Dela Cruz Ms. Agnes C. Silaya Mr. Alexander D. Pablo Mr. Jerry L. Garchitorena Ms. Shirley F. Dela Cruz

96

TECHNICAL SUB-COMMITTEE ON CASUALTY NAME

COMPANY

Mr. Alberto C. Santos, Chairman Mr. Werhner V. Parel Ms. Priscila M. Manaig Mr. Alan SD. Sta. Ana Mr. Cris A. Mercader, Jr. Ms. Arlene Q. Calimag Mr. Marlon O. Javellana Ms. Josephine A. Ramos Mr. Manny M. Maloles Atty. Christopher Jay Sacluti Atty. Fortunato D. Peralta Mr. Rogelio J. Concepcion Mr. Alexander D. Pablo Ms. Shirley F. Dela Cruz

BPI/MS Insurance Corp.

Republic Surety & Insurance Co., Inc. UCPB General Insurance Co., Inc. Philippine British Assurance Co., Inc. Solaire Resorts & Casino Malayan Insurance Co., Inc Charter Ping An Insurance Corp.

QBE Seaboard Insurance Phils. Inc. Fortune General Insurance Corp.

FPG Insurance Co., Inc. Resource Person PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

TECHNICAL SUB-COMMITTEE ON SURETY BUSINESS NAME

COMPANY

Ms. Melinda A. Natividad, Chairperson Atty. Guia Laguio Flaminiano Atty. Christopher Jay R. Sacluti Atty. Christopher R. Hernandez Atty. Edgardo C. Galvez Atty. Francis M. Nob Atty. Fortunato D. Peralta Mr. Rogelio J. Concepcion Ms. Agnes L. Silaya Mr. Alexander D. Pablo Ms. Shirley F. Dela Cruz

BPI/MS Insurance Corp.

Prudential Guarantee & Assurance Inc. FPG Insurance Co., Inc. Malayan Insurance Co., Inc. Fortune General Insurance Corp.

UCPB General Insurance Co., Inc. Resource Person PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc. PIRA, Inc.

COMPANY MAA General Assurance Phils., Inc. Asia Insurance (Philippines) Corp.

Stronghold Insurance Co., Inc. Association of Insurance Claimsmen, Inc. BPI/MS Insurance Corp.

Pioneer Insurance & Surety Corp Fortune General Insurance Corp.

National Reinsurance Corp. of the Phils.

Standard Insurance Co., Inc. Resource Person PIRA, Inc., General Manager MCIS Project Manager PIRA, Inc. PIRA, Inc. PIRA, Inc. PIRA, Inc.

TECHNICAL SUB-COMMITTEE ON MARINE NAME

COMPANY

Mr. Kent S Cotoco, Chairman Mr. Carlos H. Yturzaeta Mr. Angelito M. Lampa Mr. Elmer Victor B. Felipe Mr. Richard G. Delantar Mr. Edward N. Suy Ms. Ma. Lena B. Catacutan Mr. Mandy C. Velasquez Mr. Rogelio J. Concepcion Mr. Alexander D. Pablo Ms. Marilou C. Serrano

Oriental Assurance Corp.

E. L. Punsalan CPAs BPI/MS Insurance Corp.

Charter Ping An Insurance Corp.

Petrogen Insurance Corp.

MAA General Assurance Corp.

Pioneer Insurance & Surety Corp.

Malayan Insurance Co., Inc. PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

2017 PIRA FACT BOOK

TECHNICAL SUB-COMMITTEE ON PRODUCT MARKET DEVELOPMENT NAME

COMPANY

Ms. Joli Co Wu, Chairperson Mr. Mark R. Lwin Mr. Carlo B. Diaz Mr. Manny M. Maloles

QBE Seaboard Insurance Phils., Inc AIG Phils.Insurance Inc. Bankers Assurance Corp.

Fortune General Insurance Corp.

AD-HOC COMMITTEE ON OFFICE ADMINISTRATION NAME

TECHNICAL WORKING GROUP MICROINSURANCE COMMITEE NAME

COMPANY

Mr. Joselito C. Bantayan Mr. Carlo B. Diaz Mr. Alberto C. Santos Mr. Bernard Gerard M. Reyes Mr. Rogelio J. Concepcion Ms. Marilou C. Serrano

Bankers Assurance Corp.

Bankers Assurance Corp.

BPI/MS Insurance Corp.

Western Guaranty Corp.

PIRA, Inc., General Manager PIRA, Inc.

COMPANY

Mr. Michael F. Rellosa, Chairman Mr. Augusto P. Hidalgo Mr. David P. Mercado, Jr. Mr. Rogelio J. Concepcion Ms. Mady P. Tercero

Fortune General Insurance Corp.

National Reinsurance Corp. of the Phils.

Milestone Guaranty & Assurance Corp.

PIRA, Inc., General Manager PIRA, Inc.

TECHNICAL WORKING GROUP TAXATION COMMITEE NAME

AD-HOC COMMITTEE ON ASEAN INTEGRATION NAME

COMPANY

Mr. Michael F. Rellosa, Chairman Ms. Herminia S. Jacinto Mr. Ramon Y. Dimacali Mr. Pedro P. Benedicto, Jr. Mr. Rogelio J. Concepcion Ms. Mady P. Tercero

COMPANY

Mr. Augusto P. Hidalgo, Chairman Mr. Emmanuel R. Que Mr. Michael F. Rellosa Ms. Rebecca B. Dela Cruz Mr. Rogelio J. Concepcion Ms. Agnes L. Silaya

National Reinsurance Corp. of the Phils.

Charter Ping An Insurance Corp.

Fortune General Insurance Corp.

Alliedbankers Insurance Corp.

PIRA, Inc., General Manager PIRA, Inc.

TECHNICAL WORKING GROUP

STANDARDIZATION OF WORDINGS AND CLAUSES (SWAC)

NAME Mr. Pedro P. Benedicto, Jr. Atty. Rodolfo A. Lat Mr. Christopher Y. Marquez Atty. Isagani N. Acosta Mr. Manuel C. Quijano Mr. Joel G. Libo-On Mr. Rogelio J. Concepcion Mr. Alexander D. Pablo Ms. Marilou C. Serrano

COMPANY Republic Surety & Insurance Co., Inc. Chartered Adjusters, Inc. Fortune General Insurance Corp.

Philippine British Assurance Co., Inc. Lockton Insurance & Reinsurance Brokers, Inc. UCPB General Insurance Co., Inc. PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

Fortune General Insurance Corp.

KRM Reins. Brokers Phils., Inc. FPG Insurance Co., Inc. Republic Surety & Insurance Co., Inc. PIRA, Inc., General Manager PIRA, Inc.

AD-HOC COMMITTEE ON

SELF-REGULATORY ORGANIZATION (SRO) & REVISIONS OF PIRA’s ARTICLES OF INCORPORATION AND BY-LAWS

NAME

COMPANY

Mr. Jose G. Banzon, Jr., Chairman Ms. Rebecca B. Dela Cruz Ms. Herminia S. Jacinto Atty. April Raine B. Morales Mr. Rogelio J. Concepcion Ms. Agnes L. Silaya Mr. Alexander D. Pablo Ms. Shirley F. Dela Cruz

JLT Re Philippines Alliedbankders Insurance Corp.

KRM Reins. Brokers Phils. Inc. Plaridel Surety & Insurance Co. PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc. PIRA, Inc.

TECHNICAL WORKING GROUP

CORPORATE GOVERNANCE SCORECARD (with PLIA, IC and MBAI)

NAME Mr. Pedro P. Benedicto, Jr. Ms. Rebecca B. Dela Cruz Mr. Rogelio J. Concepcion

2017 PIRA FACT BOOK

COMPANY Republic Surety & Insurance Co., Inc. Alliedbankers Insurance Corp.

PIRA, Inc., General Manager

97

TECHNICAL WORKING GROUP

FINANCIAL REPORTING FRAMEWORK RESERVING and RISK BASED CAPITAL NAME

COMPANY

Mr. David P. Mercado, Jr., Steering Committee Ms. Rebecca B. Dela Cruz, Steering Committee Mr. Rogelio J. Concepcion, Over-All Project Manager Ms. Alegria R. Castro Ms. Marcelina F. Valles Ms. Merlina P. Mendoza Ms. Lourdes E. Cervantes Ms. Joanne S. Dela Cruz Mr. Allan R. Santos Mr.Wilfredo R. Pangilinan Mr. Gerardo S. Salas Ms. Agnes L. Silaya

Milestone Guaranty & Assurance Corp.

Alliedbankers Insurance Corp.

PIRA, Inc., General Manager Association of Insurance Accountants of the Phils.

PIRA Finance Committee BPI/MS Insurance Corp.

UCPB General Insurance Co., Inc. Malayan Insurance Co., Inc. National Reinsurance Corp. of the Phils.

AIG Philippines Insurance Inc. Pacific Cross Insurance, Inc. PIRA, Inc.

PIRA REPRESENTATIVES TO DIFFERENT ASSOCIATIONS CAPITAL MARKET DEVELOPMENT COUNCIL (CMDC) NAME

COMPANY

Mr. Augusto P. Hidalgo

National Reinsurance Corp. of the Phils.

PIRA SPOKESPERSON FOR THE INDUSTRY NAME Mr. Michael F. Rellosa

Mr. Rogelio J. Concepcion

COMPANY

NAME

PIRA, Inc., General Manager

Mr. David P. Mercado, Jr. Ms. Rebecca B. Dela Cruz Ms. Herminia S. Jacinto Mr. Rogelio J. Concepcion

MAKATI FIRE SAFETY FOUNDATION, INC. (MAFSAFI) NAME

COMPANY

Mr. Rogelio J. Concepcion

PIRA, Inc., General Manager

COMPANY Milestone Guaranty & Assurance Corp.

Alliedbankers Insurance Corp.

KRM Reins. Brokers Phils. Inc. PIRA Inc., General Manager

ASEAN INSURANCE COUNCIL (AIC) NAME

98

Fortune General Insurance Corp.

REPRESENTATIVE TO IC INVESTMENT ADVISORY COUNCIL

FINANCIAL SECTOR LIAISON COMMITTEE RE: ANTI-MONEY LAUNDERING NAME

COMPANY

Mr. Augusto P. Hidalgo Mr. Michael F. Rellosa

2017 PIRA FACT BOOK

COMPANY National Reinsurance Corp. of the Phils.

Fortune General Insurance. Corp.

Directory of Industry Associations ASSOCIATION/ ORGANIZATION

ACRONYM

PRESIDENT/CHAIRMAN CONTACT PERSON

Actuarial Society of the Philippines

ASP

MR. FROILAN EMILIO RACELA President

Unit 819 Cityland 10, Tower II H.V. dela Costa St. Salcedo Village, Makati City Tel. No. 892-0693/463-3552 • Fax No. 814-0824 E-Mail: actuarial@pldtdsl.net

Association of Insurance Accountants of the Philippines

AIAP

MS. ALEGRIA R. CASTRO President

c/o Malayan Insurance Co. Inc. 7th Floor, Yuchengco Tower 500 Quintin Paredes Street Binondo, Manila Tel. No. 628-8859 loc. 8785 (Sec. 628-8860) E-Mail: acastro@malayan.com (Sec. 628-8860)

Association of Insurance Brokers of the Philippines

AIBP

MR. GEORGE V. WINTERNITZ President & Managing Director

c/o Winternitz Associates Insurance Brokers Corp.

3/F S & L Building, Esteban corner Dela Rosa Street, Legaspi Village, Makati City Tel. No. 817-4121/4122 to 24 E-mail: gvwinternitz@winternitzinsurance.com

Association of Insurance Claimsmen, Inc.

AICI

MR. CLETO D. OBELLO, JR. President

c/o Standard Insurance Company, Inc. 30th Floor, Petron Mega Plaza Bldg., 358 Sen. Gil Puyat Ave., Makati City Tel. No.988-63-88 loc.1213 & 6374 • Telefax: 988-63-74 E-mail: cobello@standard-insurance.com

Association of Philippine Adjustment Companies, Inc.

APAC

MR. BENNY SANTOS President Ms. Glenda Madrid Secretary Assistant 0999-3455764

Bukluran ng Manggagawa sa Industriya ng Seguro, Inc.

BMIS

MR. SALVADOR B. NAVIDAD National President

Cebu Insurers Club, Inc.

CIBI

MR. MANUEL R. CASTRO President

c/o Empire Insurance Company L3, 301, Jesa-ITC, Gen. Maxilon Avenue Cebu City, 6000 Tel. No. 260-3803/01 E-mail: manuelrcastro@hotmail.com

Davao Insurers Club

DIC

MR. ERICKSON D. MONTECILLO President

c/o Malayan Insurance Co., Inc. Malayan House, Km. 6, J.P. Laurel Ave., Lanang, Davao City Tel. No.: (082) 234-1790; 235-2476 Email: emontecillo@malayan.com

COMPANY/CONTACT NO.

APAC-PILA Secretariat Rm. 419, Burke Building Escolta, Manila Tel. No. 736-73-24; 897-55-12; 733 7447 c/o Pinoy Pera Padala No. 33-35 Dona Apolonia Bldg.

Kamias Road, Quezon City Tel. No. 990-27-28 / 990-3650 Mobile No: 0917 8400610 E-mail: buddynavidad@yahoo.com

99 2017 PIRA FACT BOOK

ASSOCIATION/ ORGANIZATION

ACRONYM

PRESIDENT/CHAIRMAN CONTACT PERSON

Insurance Institute for Asia and the Pacific

IIAP

MR. ENRIQUE M. ZALAMEA Chairman MR. MELLECIO MALLILIN Vice-Chairman MR. RAMON Y. DIMACALI President MR. JANUARIO C. ALIWALAS Executive Director MS. LIGAYA M. CORCELLES Finance & Administrative Director lmcorcelles@iiap.com.ph

Non-Life Insurers Club of Iloilo, Inc.

NICI

MS. CYNTHIA E. PE Club Secretary

Junior Insurance Executive Circle

JIEC

MR. OLIVER M. GALANTO President

Life Underwriters Association of the Philippines

LUAP

MS. SHERRY LEE ONG President

Marine Tuesday Club

MTC

MR. RICHARD G. DELANTAR Chairman

Marine Underwriters Association of the Philippines

MUAP

MR. KENT COTOCO Chairman

Passenger Accident Management and Insurance Agency, Inc.

PAMI

MS. AMALIA ATAYDE BUENDIA VP - Finance

100 2017 PIRA FACT BOOK

COMPANY/CONTACT NO. Insurance Institute for Asia and the Pacific (IIAP) 26th Floor, BPI-Philam Life Makati (Formerly Ayala Life FGU-Center) 6811 Ayala Avenue, Makati City Tel. No. 893-76-84; 887-74-44/46 Fax No. 887-74-43 Email: education@iiap.com.ph Website: www.iiap.com.ph

c/o Perla Insurance Perla Compania de Seguros Bldg.

Sto. Rosario Street, Iloilo City 5000 Tel. No.: (033) 508-2685 Telefax No.: (033) 336-4788 Mobile No.:+639985448580 Email: cpe@perlainsurance.com c/o FPG INSURANCE COMPANY, INC. 6th Floor, Zuellig Bldg., Makati Ave., cor. Paseo De Roxas, Makati City Tel. No/s. 859-1214; 859-1247; 869-1206; 859-1243; 859-1225 E-Mail: ogalanto@fpgins.com.ph Life Underwriters Association of the Phils Unit 2005 Citiland 10 Tower II H.V. dela Costa Street, Salcedo Village Makati City Tel. No. 841-0478, 8136390 E-Mail: admin@luap.com.ph event@luap.com.ph c/o PETROGEN INSURANCE CORP. SMC Head Office Complex 40 San Miguel Avenue, Mandaluyong City Tel. No/s. 884-9200 Fax No. 884-0959 E-mail: rgdelantar@petron.com c/o ORIENTAL ASSURANCE CORP. 2nd Floor, OAC Building 27 San Miguel Avenue, Ortigas Center, Pasig City Tel. No/s. 631-7851 Fax No. 631-7815 E-mail: kcotoco@oac.com.ph

Unit 2403, 1 Corporate Center Doña Julia Vargas Ave., cor. Meralco Avenue Ortigas Center, Pasig City Tel. No. 654-4126 Fax No. 654-4823 E-mail: info@pami.ph, rina.villo@gmail.com, rsswing@pami.ph

ASSOCIATION/ ORGANIZATION

ACRONYM

PRESIDENT/CHAIRMAN CONTACT PERSON

Philippine Association of Surety Underwriters, Inc.

PHILASURERS

MR. PASCUAL P. CARBERO President

COMPANY/CONTACT NO. c/o ALPHA INSURANCE & SURETY CO., INC. 4th & 5th Floors, Alpha Insurance Centre, No. 1025 San Marcelino Street, Ermita, Manila Tel. No/s. 525-1301 • Fax No.404-0320; 522-6131 Email: pascarb@yahoo.com elamie.tolentino@alphainsurance.com.ph www.philassurers.org c/o ALPHA INSURANCE & SURETY CO., INC. 4th & 5th Floors, Alpha Insurance Centre, No. 1025 San Marcelino Street, Ermita, Manila Tel. No/s. 525-1301 Fax No.404-0320; 522-6131 E-Address : alpha@alphainsurance.com.ph alphainsurance@gmail.com

Philippine Insurers Club

PIC

MR. ROMEO J. BERNABE President MR. AMON R. LADEZA Vice-President MS. MA. TERESITA N. MONTES Secretary

Philippine Institute of Loss Adjusters

PILA

MR. TEODORO M. OLGUERA President

APAC-PILA Secretariat Rm. 419, Burke Building Escolta, Manila Tel. No. 736-73-24; 897-55-12; 733 7447 E-Address: apacpilasecretariat@gmail.com

PMMSC

MR. ARMAND M. PESIGAN Chairman and President

Philippine Machinery Management Services Corp.

4th Floor, ODC International Plaza, Salcedo Street, Legaspi Village, Makati City Tel. No. 818-00-55, 813-04-72, 812-88-27 Fax No.: 817-46-70 Email: armand.pesigan@pioneer.com.ph,

ctibanez@pmmsc.com.ph, toneeliu@pmmsc.com.ph

Philippine Machinery Management Services Corporation

MR. CAMILO T. IBANEZ General Manager

Philippine Life Insurance Association

MR. ARIEL G. CANTOS President

PLIA

MR. GEORGE C. MINA General Manager (Email: gm@plia.org.ph)

PLIA Office Suite 54, Fifth Floor, Legaspi Suites 178 Salcedo Street, Legaspi Village Makati City Tel. No. (632) 893-03-11 Fax No. (632) 812-15-52 E-Mail: plia@plia.org.ph

RECP

MS. JOYCE D. NAVARRO President

c/o BPI/MS INSURANCE CORP. 11th, 14th & 16th Floor, BPI-Philam Life Makati 6811 Ayala Avenue, Makati City Tel. No/s. 840-95-30 Email: jdnavarro@bpims.com

Society of Underwriters for Property & Casualty Insurance, Inc.

SOUND

MR. DANILO J. CABERO President

c/o REPUBLIC SURETY & INSURANCE CO., INC. 7th Floor, The Rockwell Business Center Ortigas Avenue, Pasig City Tel. No/s. 470-7742 Fax No. 470-3027 E-Mail: danni.cabero@republic-insurance.ph

Society of Independent Insurance Intermediaries Philippines, Inc.

TRIPLE I

MR. RAMON A. ROCO President

Reinsurance Exchange Club of the Philippines

c/o RA ROCO Insurance Brokers, Inc. Ferros Belair Tower, 30 Polaris Street, Makati City Tel. No.: 896-05-33/896-04-97 loc. 206/216 Fax No.: 896-05-29 Mobile : 0918-9054630 E-Mail : monchito@rarocoinsurance.ph, monchitoroco@yahoo.com

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Philippine Insurers and Reinsurers Association (PIRA) 6th floor ALGO Center Building LP Leviste Street, Salcedo Village, Makati City, Philippines www.pirainc.org