The Insurance Commission (IC), the Philippines’ insurance regulator, has begun an investigation into reinsurance brokerage
Marsh UK, acting on a complaint accusing it of operating illegally in the country.
In a statement released by the commission, IC chief Dennis Funa said that it has directed Marsh UK and Marsh Singapore to submit their comments on allegations raised by Jose Bernas, legal counsel of Prudential Guarantee and Assurance (PGA), a locally-owned general insurer.
“PGA’s counsel requested the Insurance Commission to conduct an investigation on the manner by which Marsh UK and Marsh Singapore conduct business in the Philippines,” Funa was quoted by the
Manila Bulletin.
“The Commission directed Marsh UK and Marsh Singapore to submit their respective comments. Upon receipt by the Commission of the comment of Marsh Singapore, the Commission requested PGA to submit its reply to the comment of Marsh Singapore,” he added.
According to Funa, the regulator can only take action after it has thoroughly evaluated the statements of both parties, as well as evidence submitted by PGA.
Recently, Bernas has alleged that Marsh used “fronting insurers” to do business in the country while unlicensed, and bypassed laws.
“While Marsh Philippines is a licensed insurance broker, Marsh UK is not,” said the letter Bernas submitted to IC.
“As of the moment, the Commission cannot comment on the allegations of PGA against Marsh UK until and unless we have received and evaluated the evidence of both parties in support of their respective allegations. To do otherwise would constitute a prejudgment on the issues,” Funa said.
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