MANILA, Philippines — The Insurance Commission (IC) has lowered the risk charges for the infrastructure investments of insurance companies to encourage the industry to participate in the government’s massive infrastructure development efforts. Subsequently, the circular provided lower capital charges for these type of assets, making infrastructure investments more attractive and cheaper for insurers, Funa said. “The risk calibration for debt instruments has been reduced to six percent, while the risk charges for investment in equity shares were likewise reduced to nine percent,” Funa said. Funa said the move to reduce risk charges on infrastructure investments was granted following the clamor of the insurance industry. As a result of the imposition of better capital charges, insurers will find it more attractive, easier, and cheaper to invest in infrastructure projects,” he added.

Source: Philippine Star May 19, 2019 16:01 UTC