HISTORY OF INSURANCE IN THE PHILIPPINES

HISTORY OF INSURANCE IN THE PHILIPPINES

DEVELOPMENT OF INSURANCE IN THE PHILIPPINES

Pre-Spanish Era - there was no insurance; every loss was borne by the
person or the family who suffered the misfortune.

Spanish era Insurance, in its present concept, was introduced in the

Philippines when Lloyds of London appointed Strachman, Murray & Co.,
Inc. as its representative here.

1898 Life insurance was introduced in this country with the entry of Sun
Life Assurance of Canada in the local insurance market.

1906 First domestic non-life insurance company, the Yek Tong Lin
Insurance Company, was organized

1910 First domestic life insurance company, the Insular Life Assurance
Co., Ltd., was organized

1939 Union Insurance Society of Canton appointed Russel & Surgis as

its agent in Manila. The business transacted the Philippines was then
limited to non-life insurance.

1936 Social insurance was established with the enactment of

Commonwealth Act no. 186 which created the Government Service
Insurance System (GSIS) which started operations in 1937. The Act
covers govt employees.

1949 Government agency was formed to handle insurance affairs, where

the Insular Treasurer was appointed commissioner ex-officio.

1950 Reinsurance was introduced by the Reinsurance Company of the

Orient when it wrote treaties for both life and non life.

1951 First workmens compensation pool was organized as the Royal

Group Incorporated.

1954 RA 1161 was enacted which provided for the organization of the
Social Security System (SSS) covering employees of the private sector.

At present, there are 130 insurance companies registered with the Office of
the Insurance Commissioner.

Of these, 2 are composite insurance

companies (engaged in both life and non-life insurance), 23 are life

insurance companies, 101 are non-life insurance companies and 4 are
reinsurance companies.

DEVELOPMENT OF INSURANCE LAWS DEVELOP

IN THE PHILIPPINES?
During the Spanish Period, the laws on insurance were found in Title VII
of Book II and Section III of Title III of Book III of the Spanish Code of
Commerce; and in Chapters II and IV of Tile XII of Book IV of the Spanish
Civil Code of 1889 (whew!)

During the American Regime, on Dec. 11, 1914, the Phil Legislature
enacted the Insurance Act (Act 2427). This Act which took effect on July 1,
1915 repealed the provisions of the Spanish Code of Commerce on
Insurance.

When the Civil Code of the Philippines (RA 386) took effect on August 30,
1950, the provisions of the Spanish Civil Code of 1889 were likewise
repealed. For quite a long time, the Insurance Act was the governing law
on insurance in the Philippines.
On Dec. 18, 1974, PD 612 was promulgated, ordaining and instituting the
Insurance Code of the Philippines, thereby repealing Act 2427. PDs 63,
123 and 317 were issued, amending PD 612. Finally PD 1460 which took
effect on June 11, 1976 consolidated all insurance laws into a single code
and this is what we know now as the Insurance Code of 1978.