IC conducts investigation on Marsh UK
The Insurance Commission (IC) said that the agency is investigating Marsh UK following reports that the foreign insurance brokerage firm was allegedly operating in the Philippines illegally.
In a statement, Insurance Commissioner Dennis B. Funa said yesterday that they already directed Marsh UK and Marsh Singapore to give their comments on allegations raised by Prudential Guarantee and Assurance, Inc. (PGA), a local non-life insurance firm.
“In a letter dated 03 April 2017, PGA’s counsel requested the Insurance Commission to conduct an investigation on the manner by which Marsh UK and Marsh Singapore conduct business in the Philippines,” Funa said.
“The Commission directed Marsh UK and Marsh Singapore to submit their respective comments. Upon receipt by the Commission of the comment of Marsh Singapore, the Commission requested PGA to submit its reply to the comment of Marsh Singapore,” he added.
Funa, meanwhile, said that any regulatory action can only be made after the commission’s evaluation of the allegations of the respective parties involved and the evidence submitted by PGA.
Earlier, Jose Bernas, PGA legal counsel, said the foreign company was allegedly 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 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.
Berns then 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.
Funa said that the request of PGA for the conduct of a probe on Marsh UK’s supposed illegal operations in the country is contained in its reply to the comment of Marsh Singapore.
He added that the request for an evidential hearing includes the determination of whether the license of Marsh Philippines to act as a resident agent of Marsh UK should be revoked for allegedly conspiring in the alleged illegal acts of Marsh UK.
Funa, however, clarified that it would be more appropriate that these matters should be threshed out in an appropriate proceeding following the rules of procedure governing administrative cases before the Insurance Commission under Insurance Memorandum Circular 1-93.
“As of the moment, the Commission cannot comment on the allegations of PGA against Marsh UK until and unless we have received and evaluated the evidence of both parties in support of their respective allegations. To do otherwise would constitute a prejudgment on the issues,” he said.
The Insurance Commission, in the exercise of its administrative powers, can hear and decide cases for violation of the Amended Insurance Code and impose appropriate penalty(ies), if warranted.