IC urged to probe insurance brokerage firm

The Insurance Commission (IC) is urged to investigate the alleged illegal operations of an insurance brokerage firm in the Philippines, a letter from a concerned lawyer stated.

In a press statement, Atty. Jose Bernas urged Commissioner Dennis B. Funa and Jose Marie Tolentino of the Philippine Insurance Commission (IC) to look into the supposed illegal operations of Marsh UK in the Philippines.

Bernas claimed the foreign company is using “fronting insurers” to bypass Philippine laws, and conduct business in the country without a license.

“While Marsh Philippines is a licensed insurance broker, Marsh UK is not,” Bernas’ letter to Funa and Tolentino dated August 31 2017, which was distributed to the media, read.

“Marsh UK is a reinsurance broker that may only tender brokerage services to an insurer, and cannot tender insurance brokerage services nor insurance services to an insured or potential insured (client),” the letter further stated.

Bernas referred to a particular case wherein Marsh UK allegedly sent the head of its Singapore office, David Jacob, to meet with the top executives of Cebu Air, Inc.

During the meeting, Bernas said Jacob allegedly presented a predetermined reinsurance package to the aviation company, wherein Marsh would assume all the insurance risks under a special arrangement with a “fronting insurer.”

In an earlier letter they sent to the IC, Bernas claimed Marsh UK allegedly acknowledged that its intention was to solicit the insurance business of Cebu Air, Inc., stating that “Marsh was now able to compete” with other local insurance companies.

“I don’t think it gets any clearer than that,” noted Bernas. “They practically admitted their violation to the IC, which is to solicit local clients and take full responsibility for their insurance needs. First of all, a reinsurer can’t do that, much less a foreign reinsurer with no license to operate in the country,” he added. (CSL)