A PRS A rating means that an insurer has strong financial security characteristics, but is somewhat more likely to be affected by adverse business conditions compared to higher-rated insurance companies.
The assigned financial strength rating takes into consideration: Pacific Cross’ highly-competitive products and solid market experience; its sound investment portfolio; ample liquidity; expectations that the company’s profitability will recover; and the resilience of the insurance industry amid the COVID-19 pandemic, supported by regulatory relief measures.
“The company’s solid knowledge of and experience in the medical and travel insurance markets can be considered as a key competitive strength of the company,” said PhilRatings.
Since it decided to specialize in medical, personal accident, and travel insurance in 1996, Pacific Cross’ strategies have consistently focused on strengthening its market position in its chosen market niche.
The company’s current product portfolio includes a diverse range of medical and insurance packages, from international US Dollar contracts and Euro plans for travel, to local Peso policies to individuals and groups.
“Being part of the Pacific Cross Group which has been operating in Asia for 60 years, the company is uniquely positioned to take advantage of the network, knowledge, and expertise of the entire group,” the ratings firm said.
The Insurance Commission is working on softening the economic and financial impact of the pandemic through the measures adopted by the Commission via various COVID-19-related circular letters it has issued, beginning March 2020.
Measures to benefit domestic insurers include: the granting of a 30-day grace period for submission of reportorial requirements, the provision of relief and assistance programs to sales agents, among others.
Furthermore, the Commission relieved insurers of the quarterly compliance with the mandatory P900 million minimum net worth requirement.
Measures to benefit policyholders, on the other hand, include the relaxation of procedures to facilitate the immediate processing of COVID-19 related claims, extension of grace period for payment of premiums, and the extension of coverage of insurance policies that are about to expire, among others.
Credit belongs to : www.mb.com.ph