ASSESSMENT ON THE LEVEL OF FINANCIAL VIABILITY OF NON-LIFE INSURANCE COMPANIES IN NORTHERN SAMAR, PHILIPPINES AS PERCEIVED BY THE CLIENTS AND MANAGEMENT

Author(s)

Abstract
This study sought to assess the level of financial viability of non-life insurance companies in Northern Samar, Philippines. Specifically, it tried to determine the profile of non-life insurance companies in Northern Samar in terms of ownership, programs and services, management and staff, financial resources, policies, systems and procedures, linkages and networking, and length of operations; determine their levels of financial viability using the indicators of stability, liquidity and profitability; identify the problems encountered by the management and staff and the clients that hinder non-life insurance companies from achieving high level of profitability; and identify management and client’s recommendations in order to improve their viability.The study is a descriptive evaluative research, which covered 6 non-life insurance companies operating in Northern Samar, involving a total of 110 respondents, 98 from the clients group and 12 from the management staff. The data gathered were treated and analyzed through the use of frequency counts, ranks, percentages and weighted means.All non-life insurance companies in Northern Samar are corporations, and are being owned by stockholders a majority of whom are males. The highest number of stockholders per insurance company is 9 with 5 as the lowest. The highest amount of capital contribution of the individual stockholder amounted to P27,000,000,00 while the lowest amounted to P20,000.00.All of the non-life insurance companies have insurance packages or services such as motorcar, fire, surety ship which covered builders/fidelity, performance and surety bonds.All of the non-life insurance companies in Northern Samar have board of directors/trustees dominated by males. The employees of the non-life insurance companies are all full-time, occupying permanent positions, holders of bachelor degrees, and most of them are males, having rank and file positions and had attended trainings on insurance/risk management.All non-life insurance companies source-out their funds from internal sources through the share capital or shares of stock contributions of the owners or stockholders. A majority of the non-life insurance companies, also derive external capitalization sourced-out from foreign reinsurers, aside from the internal source of capital. A majority of the non-life insurance companies operating in Northern Samar have marketing policies; and most of them review and update their policies only when necessary, with the involvement of their staff/employees.In terms of linkages and networking, all of the non-life insurance companies are not linked with any government or non-government institutions and are neither affiliated with any network or alliances.The assessment on the level of financial viability of non-life insurance companies in terms of stability was rated to be on the moderate level, in terms of financial viability and profitability however, the assessment both resulted to high level.Rivalry and competition among non-life insurance companies have been regarded as the number one problem of the management and staff, while among the problems encountered by the clients centered on the minimal number of manpower who could facilitate business transactions faster and easier. The recommendations of the management and the staff in order to improve the viability of the non-life insurance companies in Northern Samar is to put relevant emphasis on the review of the premium rates of each insurance package, while the clients recommended the provision of adequate number of manpower in order to cope with and avoid delays on business transactions.

Keywords
Financial viability, Non-life insurance, Indicators, Stability, Liquidity, Profitability

Cite this paper
JUNETH LOURDES F. MIRANDA, CPA, D.M., RAQUEL T. PLAMARA, MBA, ASTERIO T. MIRANDA, JR.Ph.D., ASSESSMENT ON THE LEVEL OF FINANCIAL VIABILITY OF NON-LIFE INSURANCE COMPANIES IN NORTHERN SAMAR, PHILIPPINES AS PERCEIVED BY THE CLIENTS AND MANAGEMENT , SCIREA Journal of Management. Volume 4, Issue 4, August 2020 | PP. 48-65.

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