During its 71st anniversary celebration held on 28 January 2020 at the Philippine International Convention Centre in Metro Manila, the Philippine Insurance Commission (IC), the regulator of the insurance industry in the Philippines operating under the Philippine Department of Finance, announced the results of the 2019 Insurance Industry Association of Southeast Asian Nations (ASEAN) Corporate Governance Scorecard Assessment as undertaken by the Institute of Corporate Directors (ICD).
Among over one hundred insurance companies and mutual benefit associations (MBAs) were assessed, and CARD MBA and KASAGANA-KA MBA (KMBA), both of which are ICMIF/AOA members, were ranked 6th and 11th respectively.
The ASEAN Corporate Governance Scorecard (ACGS) was developed by the Asian Development Bank (ADB) in partnership with the ASEAN Capital Markets Forum, and its objectives are to raise and improve corporate governance standards and practices of ASEAN business organisations, as well as to improve their liquidity and valuation by making them more transparent and investable to global investors. There are five major sections in the ACGS: A) The Rights of Shareholders; B) Equitable Treatment of Shareholders; C) Role of Stakeholders; D) Disclosure and Transparency; and E) Responsibilities of the Board.
Dennis B. Funa, Insurance Commissioner, said in his speech at the celebration:
“I would also like to underscore that as the insurance industry grows and develops, there is an impetus for our micro-insurance sector to grow, as well. And grow, it has. As of the third quarter of 2019, we already have 40 million individuals covered by micro-insurance. And we firmly believe that there is room for more growth. Ambitious, yes, but this vision is not at all whimsical. It is practical, doable, and one driven by hard realities.”
During the event, it was also announced that the “Microinsurance Corner” had been launched on the Insurance Commission’s website. In addition, the Commission has signed a memorandum of understanding (MoU) with the Philippine Insurers and Reinsurers Association (PIRA) and reinsurer National Reinsurance Corp. of the Philippines (NatRe) to develop and set up a Philippine Catastrophe Insurance Facility, which could be used to cover damage to properties caused by disasters like typhoons, floods, and earthquakes.
Photo: Silvida Reyes-Antiquera, General Manager, KMBA (left) and May S. Dawat, CEO, CARD MBA (right) at the 71st anniversary celebration of the Insurance Commission of the Philippines