State-run Government Service Insurance System is requiring a minimum credit rating of B+ for interested reinsurers who will join the pension fund’s bidding for reinsurance contracts.
“We needed to have a clearer perspective about credit risk because GSIS cedes part of its general insurance businesses to minimize exposure to risks. Thus, it is vital to set a minimum credit rating as a requirement for potential bidders of reinsurance contracts. In this way, we are confident that our reinsurers can meet their financial obligations when they fall due,” GSIS president and general manager Jesus Clint Aranas said.
“Our reinsurance contracts undergo public bidding. This is to ensure that all potential reinsurers, whether local or foreign, have access to a fair and transparent bidding process. The General Insurance Bidding and Awards Committee ensures that reinsurance accounts for bidding strictly adhere to the requirements for an open and competitive procurement process,“ Aranas added.