IC sets deadlines for MBAs’ adoption of new frameworks on reserve valuation, capital
THE Insurance Commission (IC) said mutual benefit associations (MBA) must adopt new regulatory frameworks on reporting, reserve valuation, and risk-based capital in their financial statements starting next year.
According to a circular dated March 25, MBAs must apply the new regulatory frameworks for their financial reporting framework (FRF), valuation of policy reserves, and risk-based capital in preparing their financial reports and annual statements beginning Jan. 1, 2027.
The IC said that prior to this mandatory application date, MBAs must use its current required regulatory frameworks.
“[The] Commission recognizes the need to provide clarity on the application date of the new regulatory frameworks to address industry concerns regarding the implementation date and the applicable framework after the transition period,” it said.
The IC also extended the transition period for MBAs, with the deadlines for parallel run requirements covering the period ending June 30 this year set on Dec. 29 and those for the period ending Dec. 31 this year scheduled for June 30, 2027.
“[The] cumulative prior-year impact of the changes arising from the adoption of the new FRF, including the shift in valuation basis from Net Premium Valuation (NPV) to Gross Premium Valuation (GPV), as well as any changes in assumptions under GPV computed based on the new valuation standards, shall be recorded in the Fund Assigned for Transition Adjustment account. This account shall be recognized only for the transition year 2027…,” it added.
The MBA industry recorded a 2.5% increase in contributions or premiums to P16.95 billion in 2025, while benefit payments and expenses rose by 6.26% to P8.23 billion. — A.M.C. Sy
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