Smaller insurance firms in the Philippines face closure for failing to meet capital requirements. The companies are only banned from selling new policies, the commission said. Seven have already opted to shut down instead of meet the PHP550m ($10.6m) minimum capital requirement, a source from the country's Insurance Commission said. The government has also ordered banks and other financial institutions not to lend more than Php500m, or about $US1 billion, to any company that fails to comply with new rules on corporate governance. Another six insurers are also facing closure, the source added.
Smaller insurance firms in the Philippines face closure for failing to meet capital requirements. Seven have already opted to shut down instead of meet the PHP550m ($10.6m) minimum capital requirement, a source from the country's Insurance Commission said. The government has also ordered banks and other financial institutions not to lend more than Php500m, or about $US1 billion, to any company that fails to comply with new rules on corporate governance. Another six insurers are also facing closure, the source added.