The Philippines’ insurance regulator has shut down a group of government employee retirees, after the regulator found that it was engaged in insurance activities without a license.
Insurance Commissioner Dennis Funa placed the “Bureau of Fire Protection Mutual Aid Beneficiary Association” (BFPMBAI) under conservationship because of its “continuing inability or unwillingness to maintain a condition of solvency or liquidity deemed adequate to protect the interest of policyholders and creditors.”
According to the regulator, members of the group come from the government’s Bureau of Fire Protection, and the Department of the Interior and Local Government. An investigation last year found that the group operated as a mutual benefit association without the necessary secondary license from the commission. The group was also levied with a PHP200,000 fine.
In an explanation addressed to the commission, a lawyer for BFPMBAI said any attempt to shutdown the group was premature, as it is currently seeking an appeal from the country’s Department of Finance. But Funa disagreed, and pointed out it is part of his duty to protect the interests of the group’s members and creditors.
Funa said the commission has “zero tolerance” for any unlicensed insurance activity in the country. “We are advising the public to report any fraudulent entity and activities to our office so we can immediately conduct an investigation to prevent further harm to the public,” he added.
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