Accounting Alerts

[UPDATE] Regulatory Relief for Entities Regulated by the Insurance Commission

This accounting alert circulates new issuances by the Insurance Commission (IC) on extension of the deadline of filing of required reports.

Introduction

In line with Proclamation No. 922, s. 2020, declaring a State of Public Health Emergency throughout the Philippines due to coronavirus disease 2019 (COVID-19), the Insurance Commission (IC) is cognizant of the specific challenges posed on the preparation, completion and submission of the 2019 annual statements and/or audited financial statements of entities regulated by the IC. In view of this, the IC issued several circular letters (CL) providing regulatory relief to its regulated entities, including the extension of the deadline of filing of required reports.

CL No. 2020-20

This CL covers all insurance and reinsurance companies, pre-need companies, and mutual benefit associations authorized to do business in the Philippines. In accordance with this CL, the IC will accept filing of these regulated entities' 2019 Annual Statements and/or 2019 Audited Financial Statements (including their required attachments) until June 1, 2020 without imposing penalties for late submission thereof.

CL No. 2020-23

This CL covers all insurance and/or reinsurance brokers doing business in the Philippines and provides for the following:

  1. amendment of the list of required attachments to covered entities' respective Audited Financial Statements (see CL No. 2020-23-Annex A)
  2. new requirement on the submission of a certification (see CL No. 2020-23-Annex B) attesting the completeness and correctness of the documents and schedules submitted, signed by the broker's Chief Financial Officer or its equivalent.

Failure to submit the necessary documents within the prescribed deadline shall cause the imposition of a penalty of P5,000 per day.

CL No. 2020-26
This CL covers all insurance and/or reinsurance brokers doing business in the Philippines. In accordance with this CL, the IC will accept the insurance and/or reinsurance brokers' 2019 AFS (including their required attachments) until June 30, 2020, without imposing any penalty.  In effect, this extends the filing deadline as set in the previous CL No. 2020-23 for the 2019 AFS.

 

See attached circular letters for the complete details of this publication.