The Philippine Competition Commission is filing charges against a pool of insurance companies and National Home Mortgage Finance Corp. for signing anti-competitive agreements over the exclusive provision of mortgage redemption insurance to its account holders for almost 40 years.
The PCC’s Enforcement Office charged NHMFC and the eight insurance companies and their responsible officers for violating the Philippine Competition Act.
“This exclusive arrangement effectively deprived NHMFC and the housing loan borrowers of choosing MRI coverage from other providers which may offer better terms and conditions at lower premium rates,” the PCC said.
“This has resulted in poor service, unfavorable premium rates, and lack of options to the detriment of thousands of account-holders, including low-cost and socialized housing borrowers,” the regulator said.
The eight are Beneficial Life Insurance Co. Inc., Country Bankers Life Insurance Corp., First Life Financial Co. Inc., Fortune Life Insurance Co. Inc., Manila Bankers Life Insurance Corp., Philippines International Life Insurance Co., Inc., The Manufacturers Life Insurance Company (Philippines) Inc. and United Life Assurance Corp.