1. Insurance Commission: Regulatory Updates (A presentation to the Regulators’ Forum) by Vida T. Chiong Deputy Insurance Commissioner 14 July 2015

2. Republic of the Philippines Department of Finance INSURANCE COMMISSION INSURANCE COMMISSION BUILDING Address : Insurance Commission 1071 United Nations Avenue, Manila Website : www.insurance.gov.ph

3. Republic of the Philippines Department of Finance INSURANCE COMMISSION Insurance Companies99 Composite4 Life27 Non-Life67 Professional Reinsurer1 Mutual Benefit Association34 Pre-Need Companies14 Insurance/Reinsurance Brokers83 General Agents329 Insurance Commission Regulated Entities

4. Republic of the Philippines Department of Finance INSURANCE COMMISSION Industry’s Total Assets as of Dec. 31, 2014 (in Billion pesos) Life Sector855.3 Non-Life Sector (Including Professional Reinsurer)160.9 Mutual Benefit Associations49.8 Pre-Need116.2 Total1,182.2

5. Republic of the Philippines Department of Finance INSURANCE COMMISSION IC- Accredited External Auditors Firms36 Signing Partners89 Individuals15

6. Republic of the Philippines Department of Finance INSURANCE COMMISSION Accreditation Types: 1. Firms/ Signing Partners: Life/Non-Life/ Professional Reinsurance Company/Mutual Benefit Association 2. Individuals: Trusts for Charitable Uses/ Insurance& Reinsurance Brokers/ General Agents Accreditation Fee - 5,000.00 FirmsSigning Partners Accreditation Fee 50,000.00 5,000.00

7. Republic of the Philippines Department of Finance INSURANCE COMMISSION Accreditation Process: Reference: IC Circular Letter No. 29-2009 Dated November 10, 2009 Undertaking of the External Auditor: Among others, to preserve his working papers including any other related documents for a period of five (5) years and making them available to the Commissioner’s representatives when required.

8. Republic of the Philippines Department of Finance INSURANCE COMMISSION Regulatory Updates: Reference:1.New Insurance Code or RA 10607 Signed into law in September 2013 2.Circular Letters and Advisories issued by the Insurance Commission

9. Republic of the Philippines Department of Finance INSURANCE COMMISSION Capitalization Requirements 1. Existing Insurance Companies Compliance DateMinimum Networth (in million pesos) 2013250 December 31, 2016550 December 31, 2019900 December 31, 20221,300 2. Existing Professional Reinsurer Compliance DateMinimum Networth (in billion pesos) 20132.00 December 31, 20162.25 December 31, 20192.50 December 31, 20223.00

10. Republic of the Philippines Department of Finance INSURANCE COMMISSION Capitalization Requirements 3. New Insurance Companies Minimum Paid-up Capital: ₱ 1,000,000,000 Contributed Surplus: ₱ 100,000,000 4. New Professional Reinsurers Minimum Paid-up Capital: ₱ 3,000,000,000 Contributed Surplus: ₱ 400,000,000 Cont.:

11. Republic of the Philippines Department of Finance INSURANCE COMMISSION New Financial Reporting Framework (coverage) 1.Chart of Accounts for Insurance Companies 2.Reserve Valuation Standards for Life Insurance Companies* 3.Reserve Valuation Standards for Non-Life Insurance/ Reinsurance Companies** 4.Proposed RBC2 Template 5.Timelines for Submission of Reports for the Parallel Runs *Gross Premium Valuation Method **UPR 24 th method; To use actuarial method in computing other reserves ________________________

12. Republic of the Philippines Department of Finance INSURANCE COMMISSION New Financial Reporting Framework (coverage) 6.Valuation of Assets 7.Investments Limits 8.Allowable Investments 9.Admitted/ Non- Admitted Assets 10.Fees, Charges & Penalties Cont.:

13. THANK YOU