THE Insurance Commission (IC) has signed an order on Wednesday, dismissing the complaints filed by Prudential Guarantee and Assurance Inc. (PGA) and Marsh Philippines Inc. against each other based on the Joint Motion to Withdraw Complaint (JMWC) filed by the parties.
Insurance Commissioner Dennis B. Funa signed the order dismissing the complaints on August 29, 2018, with PGA and the Marsh Group moving for the withdrawal of their complaints against each other through a JMWC filed before the IC.
Based on the joint motion, both parties said the allegations on their respective complaints are “purely a result of an innocent misunderstanding and misappreciation of facts.”
PGA and the Marsh Group said they have reconciled their differences involving any and all incidents involved in cases pending before the IC and have entered into an amicable settlement and resolution.
“The administrative proceedings before this Commission involving these parties have been pending with us for only almost a year, and we are pleased that PGA and the Marsh Group were able to amicable resolve this matter in a relatively short amount of period,” Funa said.
In an order dated August 29, 2018, the insurance commissioner granted the Joint Motion to Dismiss filed in the two cases and considered the separate complaints withdrawn and dismissed the same with prejudice.
Funa welcomes the positive development involving the dispute between two leading insurance-industry players.
“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,” he added.
The cases before the IC stemmed from the separate complaints filed against Marsh & McLennan Companies Inc. and its subsidiaries Marsh Ltd., Marsh (Singapore) Pte. Ltd., and Marsh Philippines Inc., by PGA and another filed by Marsh Philippines Inc. against PGA.
In both complaints, parties were accused of having committed acts constituting violations of insurance laws, rules, and regulations.
Late last year, PGA filed a complaint which questioned the practice of Marsh Philippines using “fronting insurers” to solicit business in the Philippines.
The IC reported it was studying whether or not Marsh was effectively conducting business in the Philippines without a license.
PGA is one of the leading nonlife insurance companies in the Philippines with a net worth of P2.62 billion as of 2017 based on submitted unaudited quarterly statistics. It likewise belongs to the top five nonlife insurance companies in terms of gross and net premiums written, premiums earned, and assets.
Marsh PHL is a licensed insurance and reinsurance broker, a wholly-owned subsidiary of Marsh & McLennan Companies Inc., one of the leading global services firms in risk, strategy, and people.