Insurance industry remains sound -- Insurance Commission

By Ed de Leon

Monday 13th of February 2012

LEGAZAPI CITY, Feb 11 -- Insurance Commission chief Emmanuel Dooc declared here Friday (Feb. 10) that the insurance industry in the country remains in solid footing and the case of Prudential Life Plans, Inc. was an isolated case thus there is no cause for worry.

Dooc made the statement during a press conference held here, also disclosing the the insurance industry actually grew by 21 percent in 2011 more than the figures in 2010.

Dooc said that the insurance industry generated income from premium payment of P70.7 billion in 2010, while P85.8 billion were generated from premium payments in 2011 or P15 billion over the 2010 figures.

Dooc further explained that the commission took over the supervision of the pre-need industry from the Securities and Exchange Commission in 2010 and immediately undertook audit of the pre-eneed companies, consequently, discovering that some of the companies were deficient in funds to support the claims of planholders.

"This is same case with Prudential Life Plans, Inc., thus ordering the company to stop selling its products," he said.

The Insurance Commission on February 3, 2012 issued a “Stay Order” on the request of troubled pre-need firm Prudential Life Plans Inc. for corporate rehabilitation.

With the Stay Order decision, all payment of claims by plan holders effective February 6, 2012 are suspended, meaning starting February 6, all Prudential Life Plans Inc. plan holders cannot file for any claims against the company until its corporate rehabilitation plan is approved. All claims being processed as of February 6 will still be honored and funds will be released to plan holders.

The commission directed all Prudential Life Plans Inc. plan holders, stockholders, creditors, and other interested parties to view and comment on the verified proposal for corporate rehabilitation submitted by the company and are available at Prudential Life Plans Inc. web site.

He added that the commission has already set a public hearing on March 2, this year with the planholders and other stakeholders to discuss what will be the best course of actions to take in order to protect the interest of all parties concerned. (MAL/EDL- PIA V)