MANILA -- A circular that will allow insurance companies to invest in infrastructure-related projects of the government is being drafted by officials of the Insurance Commission (IC).
Deputy Insurance Commissioner Ferdinand George A. Florendo said the proposal seeks to allow the companies to invest in all the infrastructure projects included under the Philippine Development Plan (PDP) and not just those identified under the public-private partnership (PPP) initiative.
“The proposal is so long as the companies invest in the PDP priority items, either in equity form or debt or investment to bond issuance of companies, IC will admit it,” he said.
Florendo also said the insurance companies need to show that they have a healthy cash flow to take part in these priority projects to ensure financing. He added that investing in government projects will be allowed not just for life insurance companies but also non-life insurance companies.
Finance Secretary Carlos Dominguez III, in his speech during the 68th anniversary celebration of the Philippine Life Insurance Association Inc. on Tuesday night, urged insurance industry players to share in the government’s “Build, Build, Build” program by investing in projects identified under this massive infrastructure program.
Under this program, the government will invest at least PHP1 trillion annually to put up infrastructure projects, not only in the metropolis, but also in far-flung areas, particularly in Mindanao.
Dominguez said investment in priority infrastructure projects of the government will allow the insurance companies to diversify risks. “I urge you to more closely review the investment opportunities opened by the infrastructure program and making a conscious effort to participate. It not only makes sound business sense to do so. It is also a patriotic thing to do,” he said. (PNA)
