THE INSURANCE Commission (IC) junked the complaints filed by Prudential Guarantee and Assurance, Inc. (PGA) and Marsh Philippines, Inc. against each other for allegedly breaching insurance laws.
In a statement on Thursday, Insurance Commissioner Dennis B. Funa signed an order dated Aug. 29 dismissing the complaints filed by non-life insurer PGA against the Marsh Group and the one filed by reinsurance broker Marsh Philippines against PGA following a joint motion to withdraw complaints filed by both parties before the IC.
Based on the joint motion, PGA and the Marsh Group said the allegations against each other stemmed from “an innocent misunderstanding and misappreciation of facts.”
“According to PGA and the Marsh Group, they have reconciled their differences involving any and all incidents involved in cases pending before the Insurance Commission and have entered into an amicable settlement and resolution,” the IC added.
Mr. Funa welcomes the positive development regarding the issue, saying the administrative proceedings before the commission have been pending for almost a year.
“We are pleased that PGA and the Marsh Group were able to [amicably] resolve this matter in a relatively short…period,” Mr. Funa was quoted in the statement.
In both complaints, the parties were accused of “having committed acts constituting violations of insurance laws, rules and regulations.”
Late last year, PGA counsel Jose A. Bernas urged the IC to investigate the Marsh Group, saying that Marsh offered airline Cebu Pacific of a reinsurance package through a “fronting insurer.”
“Both parties have a good reputation in the insurance industry not only locally but internationally and the settlement of their disputes is a positive development,” Mr. Funa added.
PGA was the third-biggest non-life insurer in the country in asset terms with P13.07 billion as of end-2017, data from the IC showed.
Marsh Philippines is a licensed insurance and reinsurance broker, a wholly-owned subsidiary of Marsh & McLennan Companies, Inc. — K.A.N. Vidal