BusinessHow to Get an Insurance Certificate of Authority: Requirements and Process

An Insurance Certificate of Authority (COA) is the primary legal requirement for companies aiming to operate as insurers. It serves as official approval from the Insurance Commission (IC), confirming that the company has met all regulatory, financial, and organizational standards. Below, we’ll explain the requirements and processes to help businesses obtain a COA in the Philippines.

What is an Insurance Certificate of Authority?

An Insurance Certificate of Authority is an official authorization issued by the Philippines Insurance Commission (IC). It allows companies to conduct insurance business, such as underwriting and issuing insurance policies. The COA ensures that insurers meet stringent regulatory standards, protecting policyholders and maintaining industry stability. 

Who Needs an Insurance Certificate of Authority in the Philippines?

A Certificate of Authority is required for entities intending to operate as insurance companies or health maintenance organizations (HMOs) in the Philippines. This includes:

• Life Insurance Companies: Entities offering life insurance products like term life or whole life policies.
• Non-Life Insurance Companies: Businesses providing general insurance, including property, casualty, and liability coverage.
• Health Maintenance Organizations (HMOs): Companies offering health and medical insurance plans.
• Reinsurance Companies: Firms that insure other insurance companies to mitigate risks.

Individuals, such as agents or brokers, do not need a COA but require separate licenses to sell or negotiate insurance products.

Types of Insurance Certificates of Authority Available

The Insurance Commission issues COAs based on the type of insurance business:

1. Life Insurance COA: Authorizes companies to underwrite life insurance products.
2. Non-Life Insurance COA: Covers general insurance, such as property, marine, or casualty insurance.
3. HMO Certificate of Authority: For organizations providing health and medical insurance plans.
4. Reinsurance COA: Permits companies to offer reinsurance services to other insurers.
5. Variable Life Insurance COA: For companies offering life insurance that combines death protection with investment options (like stock and bonds). This type of insurance allows policyholders to grow cash value through chosen funds.

Each COA type has specific capital, solvency, and operational requirements.

Eligibility Criteria for Applicants

To qualify for an Insurance Certificate of Authority in the Philippines, applicant companies must meet the following criteria set by the Insurance Commission:

• Be a duly organized corporation or cooperative registered with the Securities and Exchange Commission (SEC) or Cooperative Development Authority (CDA).
• Meet the minimum paid-up capital requirements, which vary by insurance type (usually 1-3 billion pesos).
• Have a viable business plan demonstrating financial stability and market feasibility.
• Employ qualified personnel, including licensed actuaries and officers with relevant experience.
• Comply with solvency and risk-based requirements set by the IC. This requires showing stable, regularly audited financial statements, maintaining enough cash assets, and following the Insurance Commission’s guidelines on fund management and investment placement.
• Demonstrate good corporate governance and compliance with the Insurance Code.

Meeting these criteria ensures the company can operate responsibly in the insurance market.

Required Documents for the Insurance Certificate of Authority

When applying for a COA, companies must submit the following documents to the Insurance Commission:

1. Letter of intent addressed to the Insurance Commissioner
2. Articles of incorporation or cooperation, as the case may be
3. Certified true copy of the Certificate of Registration issued by the Securities and Exchange Commission or the Cooperative Development Authority
4. List of officers and members of the board of directors;
5. If any of the incorporators is an alien, the latter’s Alien Certificate of Registration for the current year and/or working visa from the Bureau of immigration, if applicable
6. Name, branch, and address of the depository bank/s
7. Waiver in favor of the lC to verify the existence of the capital deposits
8. Pre-operational balance sheet.

You may need to submit additional requirements depending on the type of insurance company. Ensure all documents are complete and authentic to avoid delays in processing.

Insurance Certificate of Authority Application Process

Follow these steps to obtain a Philippine Insurance Certificate of Authority:

1. Organize the Company: Register the company with the SEC and ensure compliance with corporate requirements. Also, remember to register with other key government agencies, such as your local LGU, the BIR, and the DOLE.
2. Meet Capital Requirements: Deposit the minimum paid-up capital in an IC-approved bank.
3. Prepare a Business Plan: Develop a detailed plan outlining the company’s operations, products, and financial projections.
4. Compile Required Documents: Gather all necessary documents, ensuring they meet IC standards.
5. Submit Application to the IC: File the application at the Insurance Commission’s office and pay the required fees.
6. Undergo IC Evaluation: The IC will review the application, financials, and business plan, which may take several months. You will need to pay several examination fees.
7. Receive the COA: Upon approval, the company receives the Certificate of Authority, allowing it to operate as an insurer.

Business Registration Philippines can assist you with the process, ensuring your documents are complete and avoiding unnecessary delays.

Maintaining and Renewing Your Certificate of Authority

Holding a COA comes with ongoing responsibilities:

• Compliance with Regulations – Adhere to the Insurance Code, solvency requirements, and IC circulars to avoid penalties or revocation.
• Financial Reporting – Submit audited financial statements, actuarial reports, and other required documents annually.
• Renewal Process – The COA is typically valid for up to three years. Apply for renewal by submitting updated financials, compliance reports, and renewal fees before expiration. The renewal requirements include:
  • Copy of the valid Certificate of Authority issued by the lC or Clearance to operate issued by the Department of Health (DOH)
  • Submission of – (a) a list of current members of the board of directors/ officers/stockholders; (b) audited financial reports; and (c) any amendments or changes in the documents submitted during its initial application
  • Pay renewal fee/s
• Corporate Governance – Maintain robust governance practices, including risk management and internal controls.
• Market Conduct – Ensure fair treatment of policyholders and compliance with consumer protection regulations.

Failure to comply may result in suspension or revocation of the COA.

Other Licenses You May Need

In addition to the Certificate of Authority (COA) required to operate as an insurance company in the Philippines, you likely need some of the following licenses depending on your business operations:

• Insurance Agent License: Required for individuals selling or soliciting insurance policies on behalf of your company.
• Insurance Broker License: Needed for individuals acting as intermediaries to negotiate insurance contracts between clients and insurers, issued by the IC.
• Variable Life Insurance License: Necessary for agents selling investment-linked insurance products, requiring additional qualifications due to the complexity of these products.
• Reinsurance Broker License: Necessary for individuals or entities facilitating reinsurance agreements between insurers, issued by the IC.
• Adjuster License: This is required for individuals or firms assessing insurance claims on behalf of insurers. It is also regulated by the IC.

Ensure compliance with all relevant licenses and permits to operate legally, avoid penalties, and maintain smooth business operations in the Philippines.

Final Thoughts

By following these steps and meeting the requirements, companies can successfully obtain and maintain a Philippine Insurance Certificate of Authority, enabling them to operate legally and thrive in the insurance industry. Contact us for assistance in ensuring your eligibility, preparing the required documents, and processing your Certificate of Authority.

Is this Your First Time Registering an Insurance Company? 

Registering an insurance company in the Philippines can be a complex and challenging process. With numerous IC licenses and permits to secure, it’s easy to miss a document or forget to renew it. Unfortunately, this can lead to costly fines or even force your operations to shut down.

Thankfully, the Business Registration Philippines team provides comprehensive support for your business registration, so you don’t have to stress over the paperwork. 

Contact us today to schedule an initial consultation with one of our experts:

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