IC: No regulatory action against Marsh UK pending investigation

The Insurance Commission (IC) said yesterday it cannot impose any regulatory action against foreign insurance broker Marsh UK unless presented with evidence regarding the alleged illegal operations of the company in the Philippines.

In statement, Insurance commissioner Dennis Funa said the agency is still awaiting the necessary evidence to support the allegations of Prudential Guarantee and Assurance Inc. (PGA) against Marsh UK that it was operating in the country without license.

“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,” Funa said.

According to Funa, the accusations against Marsh UK was brought to the IC’s attention through a letter dated April 3, signed by Bernas Law offices in behalf of PGA.

“In a letter dated April 3, 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.

“In addressing the request and in order to verify the allegations of PGA, the IC directed Marsh UK and Marsh Singapore to submit their respective comments,” he said.

Funa said PGA was then requested to submit its reply upon the submission of Marsh Singapore’s response. He said PGA requested for a conduct of an evidentiary hearing to determine whether Marsh UK was indeed operating in the Philippines without the necessary license.

Funa said the request for the hearing also includes the determination of whether the license of Marsh Philippines, the resident agent of Marsh UK in the country, should also be revoked for alleged conspiracy.

However, Funa said the matter should be dealt with in accordance to Insurance Memorandum Circular 1-93, which lays out the rules of procedure governing administrative cases.

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 penalties, if warranted.