Lawmaker Files Resolution to Investigate Hikes in Catastrophe Insurance Rates

A lawmaker has filed for a resolution that calls for an investigation into the sudden increase in catastrophe insurance premium rates.

AGRI Party-list Rep. Wilbert T. Lee has filed House Resolution 632 and has stated that prices of basic commodities would be affected as well as it being an added difficulty to the public.

Rep. Lee has mentioned that the resolution was filed to establish the impact and scope of the Insurance Commission’s (IC) Circular Letter 2022-34 which adjusts the maximum and minimum catastrophe rates in the Philippines.

The modified rates would be implemented beginning January 1, 2023. These rates take into account circumstances such as the type of construction and risk zones. Due to this, an abrupt spike in insurance premiums will be expected, ranging from a 40 to 400% increase.

“The increase ranging from 40 percent to as high as 400 percent in insurance bills to companies, especially to MSMEs [micro-sized, small-scale, medium-sized enterprises] is too high to bear,” mentioned Rep. Lee.

“It is surely an unreasonable increase and certainly, the paying public will bear the burden of these abrupt increases in insurance rates.”

He adds that “taking into consideration that we are still just recovering from the effects of the Covid-19 pandemic, it is incumbent upon the government to respond to their critical needs as we slowly get back on our feet.”

“We must not add to the burdens of the public, especially the marginalized sectors,”

The resolution also indicates that the increased cost of catastrophe insurance premiums will add to the increase of prices in basic commodities.

Source: Business Mirror