How to Get a Philippine Insurance Certificate of Authority

Starting an insurance company in the Philippines is not as simple as registering a business and opening your doors. Because insurance deals directly with people’s money and financial security, the government imposes strict regulations to ensure companies operate fairly and responsibly.

One of the most important requirements for any insurance company is the Certificate of Authority (COA) issued by the Insurance Commission. Without this license, no insurance company can legally transact business in the country. If you plan to establish an insurance business, here’s everything you need to know about the COA and how to get one.

What Is a Certificate of Authority for Insurance Companies?

The Certificate of Authority (COA) is the official license that permits an insurance company to operate legally in the Philippines. It is granted by the Insurance Commission (IC), the government agency that regulates and supervises the insurance industry.

The COA covers different types of insurance businesses, including life, non-life, health, and reinsurance. It validates that the company has met the minimum financial, legal, and operational requirements set by the Insurance Code of the Philippines (Republic Act 10607).

Why Do Insurance Companies Need a Certificate of Authority in the Philippines?

The COA protects both businesses and policyholders. Here’s why your insurance company needs one:

• Legal compliance – Operating without a COA is prohibited and may result in heavy penalties, closure, or criminal liability.
• Consumer protection – The COA ensures that only financially stable and trustworthy companies handle insurance policies.
• Market credibility – A licensed insurance company can gain customer confidence more easily.
• Access to growth opportunities – Many partnerships, reinsurance arrangements, and corporate clients require proof of licensing before doing business.

In short, securing a COA is both a legal and practical necessity.

Eligibility Requirements for a Certificate of Authority

Before applying for a COA, insurance companies must satisfy several requirements under Philippine law:

• Proper registration with the Securities and Exchange Commission (SEC) as a stock or mutual insurance company.
• Minimum paid-up capital as prescribed by the Insurance Code. The amount depends on the type of insurance company, but it is usually around 1-3 billion pesos.
• Qualified directors and officers who meet the Insurance Commission’s “fit and proper” standards.
• Adequate financial capacity, demonstrated through audited financial statements and investment compliance. This means the company must show proof of stability through regularly audited accounts, sufficient cash assets, and adherence to the Insurance Commission’s rules on how funds and investments are managed.
• Operational readiness, including systems, actuarial support, and internal controls.

The exact requirements will vary depending on the type of insurance company (life insurer, non-life insurer, composite insurer, or reinsurance-only company). Contact Triple i Consulting to ensure your company is eligible before applying for a Certificate of Authority. 

Documents Required for Certificate of Authority Application

The documentary requirements vary depending on the type of insurance company. But they generally include:

1. Letter of intent addressed to the Insurance Commissioner
2. Articles of business 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

Upon submission of complete documentary requirements, the Licensing Division shall conduct an on-site relicensing examination. You’ll need to pay examination fees. 

If you pass the examination and receive a recommendation from the IC, you’ll receive your Certificate of Authority, typically valid for up to three years before requiring a renewal.

How to Apply for a Certificate of Authority

Applying for a COA involves several steps:

1. Incorporate the company – Register with the SEC and secure your Articles of Incorporation and By-Laws.
2. Meet the eligibility requirements – Ensure you have the minimum paid-up capital required by your type of insurance company. Other requirements include demonstrating adequate financial capacity through audited financial statements, maintaining compliant investments, and having a qualified management team with the technical expertise to run insurance operations.
3. Prepare documents – Gather financial statements, board resolutions, and personal records of directors and officers.
4. Apply to the IC – File the requirements with the Insurance Commission.
5. Pay fees – Settle the prescribed filing and examination fees.
6. Undergo evaluation – The IC will review your financial capacity, management qualifications, and business plan.
7. Receive approval – If requirements are met, the IC issues the Certificate of Authority, allowing your company to operate.

Processing time can vary depending on the completeness of your documents and the IC’s evaluation process, but it generally takes 1 to 3 months. To avoid delays, ensure your required documents are complete, accurate, and fully compliant.

How to Renew Your Certificate of Authority

A Certificate of Authority (COA) issued by the Insurance Commission is typically valid for up to three years. Insurance companies must apply for renewal before the certificate expires to continue operating legally.

Steps to Renew Your COA:

• Prepare updated requirements – Include the latest audited financial statements, compliance certificates, and reports required by the Insurance Commission. These 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
• Submit your renewal application – File your documents with the IC within the prescribed renewal period (usually a few months before expiration).
• Pay applicable fees – Settle renewal and processing fees as instructed by the IC.
• Comply with additional requests – The IC may ask for clarifications or additional documents during its evaluation.
• Receive your renewed COA – Once approved, the IC will issue your certificate, allowing your company to continue operating legally.

Other Insurance Documents You May Need

In addition to the COA, an insurance company may typically need to secure or oversee:

• Product approvals – Each insurance product must be filed with and approved by the IC before it can be sold.
• Licenses for agents and brokers – Individuals and firms selling your policies must have their own licenses from the IC.
• Actuarial accreditation – Your company must employ or engage an IC-accredited actuary.
• AMLC registration – Insurance companies are “covered institutions” under anti-money laundering laws and must register with the Anti-Money Laundering Council.
• Annual COA renewal – Companies must regularly renew their Certificate of Authority with the IC to maintain good standing.

These additional licenses and registrations ensure compliance with the Philippine insurance regulatory framework.

Final Thoughts

The Certificate of Authority is the primary license for any insurance company in the Philippines. It confirms that your business has met the government’s financial, legal, and operational requirements, giving you the credibility to transact with clients and partners. You can properly start your insurance company by meeting eligibility requirements, preparing documents carefully, and complying with ongoing obligations.

Are You Applying for an Insurance Certificate of Authority?

Applying for or renewing an Insurance Certificate of Authority (COA) from the Philippines’ Insurance Commission (IC) can be time-consuming and detailed. Because of the strict documentation requirements and regulations, it’s easy to make a mistake or miss a step, leading to penalties or delays in your operations.

That’s where Triple i Consulting comes in. Our team of experienced lawyers and accountants provides comprehensive support for your business, so you don’t have to stress over the paperwork. 

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

• Fill out the form below
• Call us at: +63 (02) 8540-9623
• Send an email to: info@tripleiconsulting.com