Question & AnswerQ&A (DOF DEPARTMENT ORDER NO. 100-94)
The three modes of entry are: a) Ownership of the voting stock of an existing domestic insurance or reinsurance company or intermediary, b) Investment in a new insurance or reinsurance company or intermediary incorporated in the Philippines, and c) Establishment of a branch (not available for intermediaries).
No, foreign intermediaries are not allowed to enter by establishing a branch.
Factors include geographic representation, strategic trade and investment relationships, demonstrated capacity and global reputation, reciprocity rights for Philippine companies abroad, and willingness to share technology.
They must be among the top 200 foreign companies or intermediaries in their country, have been doing business for at least 10 years, and to qualify as a branch or new company, must be widely-owned and publicly listed unless majority-owned by the government.
A company is widely-owned if no single stockholder owns more than 20% of its voting stock.
The minimum paid-up capital is P250 million with a contributed surplus fund of P50 million.
The minimum paid-up capital required is P150 million.
They must deposit securities with a market value of not less than P300 million for insurance companies and P500 million for reinsurance companies with the Insurance Commission.
A minimum paid-up capital of US$1,000,000 or its equivalent in Philippine pesos, with 50% to be invested in Philippine Government Securities deposited with the Insurance Commission.
The head office of the foreign insurance or reinsurance company guarantees prompt payment of all liabilities of its Philippine branch.
Entry is allowed within two years from the effectivity of these guidelines.
Five (5) each, with possible increase to ten (10) each by approval of the President of the Philippines upon the recommendation of the Secretary of Finance.
Non-Filipino nationals may serve to the extent of the foreign participation in the equity of the company.
Yes, expatriates may hold managerial positions subject to existing laws, rules, and regulations.
The existing pre-licensing requirements of the Insurance Commission for new domestic companies or intermediaries apply to applicants under these guidelines.
Those increasing their equity participation to more than 40% upon effectivity of the order shall be governed by these guidelines.