The Insurance Commission must suspend the implementation of its Circular Letter No. 2022-34, which seeks to increase the insurance premium rates on catastrophes such as typhoons, floods and earthquakes.

(Bernard Hermant/ Unsplash)

AGRI Party-list Rep. Wilbert T. Lee reiterated this call Sunday, Dec. 18, and said that another round of price hikes on basic commodities is at stake.

Last Dec. 12, Lee filed House Resolution (HR) No. 632 to seek a probe into the untimely adjustment of the minimum catastrophe insurance rates across the country. He claimed that this was decided on without prior consultation with the private sector and with the end-user who will be negatively affected by the increase.

The adjusted rates, which will take effect on January 1, 2023, will result to a sudden huge increase in catastrophe insurance premiums ranging from 40 percent to as high as 400 percent.

“Kaya po natin nireregulate itong insurance industry para maging patas o hindi makapang-abuso ang mga insurance companies. Pero bakit wala man lang nakonsultang end-users sa pagtaas ng insurance premium na ito? Sino po ba ang pinoprotektahan sa polisiyang ito? (The reason why we're regulating this insurance industry is to ensure fair play and non-abuse by these insurance companies. But why weren't the end users consulted on this hike in insurance premium? Who is this policy meant to protect?)” Lee asked.

The neophyte congressman also questioned the commission's focus on the minimum rate.

“Bakit minimum ang tinututukan dito? Hindi ba, it’s better or it’s good for the consumer if magkakompetisyon at pababaan ng rate. Bakit ngayon ang kinokontrol ng ating komisyon ay ang minimum? Walang maximum eh, walang ceiling (Why is the focus on the minimum rate? Isn't it better or good for the consumers if the competition is about lowering the rate. Why is the commission now controlling the minimum? There's no maximum, there's no celiling)?” he added.

The lawmaker from Sorsogon pointed out that the insurance premium hike will also result to the increase in prices of basic commodities which is an additional burden to the general public.

Lee also shared contents of a letter that he wrote to Insurance Commissioner Dennis Funa where he asked him to inquire on the issue. The latter has not responded as of this posting.

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https://mb.com.ph/2022/12/13/more-price-hikes-solon-explains-why-adjustment-in-catastrophe-insurance-rates-is-worrisome/

“Domino effect po ito. Siguradong tataas ang presyo ng mga pagkain, dahil sa production pa lang, sa storage, sa mga makina, pagdating sa distribution center, hanggang sa retail, lahat ay apektado ng pagtaas ng insurance premium na ito dahil halos lahat po ay kumukuha na ng insurance (This will trigger a domino effect. Food prices will surely go up because the insurance premium hike will affect everything from storage, machineries, distribution centers and even retail),” underscored Lee.

He had earlier expressed alarm on the detrimental impact of the insurance hike to the agriculture sector and to the government’s effort to achieve food security.

“Nalaman po natin na pati Philippine Crop Insurance Corporation (PCIC) ay apektado at magtataas din ng insurance premium. Kung patuloy na madedehado ang ating agri workers sa mga serbisyo, nalalagay din sa alanganin ang isinusulong nating food security (We learned that the will also be increasing insurance premium. If our agri workers will continue to be disadvantaged, then our dream of food security will also be compromised),” Lee said.