The Philippines’ Insurance Commission (IC) has begun hearings on a complaint filed by a local insurer against international reinsurance brokerage
Marsh.
In October, Prudential Guarantee and Assurance (PGA) filed a complaint against Marsh, accusing it of conducting unlicensed business in the Philippines by overstepping its registration as a reinsurance brokerage.
According to PGA’s lawyer Jose Bernas, Marsh allegedly offered airline Cebu Air a reinsurance package where Marsh would assume all insurance risks through a “fronting insurer”, which was in violation of the Amended Insurance Code which states that a reinsurance broker cannot offer insurance services directly to a client.
PGA asked IC to terminate the license of Marsh’s Philippine unit, but the regulator responded that it must follow the rules of procedure.
“We will still assess all the matters that will be presented by both parties because as early as now, it would be too early to prejudge,” IC officer-in-charge for enforcement and prosecution Brian Sibuyan told the
Manila Times. “It will really depend on the evidence presented by both parties.”
The regulator instructed both parties not to disclose any information that was discussed in the hearing, as the case is currently being deliberated. According to Sibuyan, such a case could take up to a year before a resolution is reached.
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