IC orders insurers to report DPWH infra bonds

December 20, 2025 | 12:00am

MANILA, Philippines — The Insurance Commission (IC) has directed all non-life insurance companies duly authorized to act as sureties to submit detailed reports on all bonds they have issued, as part of efforts to strengthen regulatory oversight and risk monitoring.

In a circular, the insurance regulator said that submissions should provide comprehensive information on the infrastructure bonds of the Department of Public Works and Highways (DPWH) including their current status and project identifiers.

“In line with the reports previously submitted on bonds issued in favor of the government, including those for DPWH infrastructure projects, additional details are required to further assess the overall risk exposure and potential concentration risk of surety companies,” it read.

The required information includes the bond’s status, project or contract identification, project title, total contract value, any co-surety involved and whether the bond is fully secured.

The report will cover the period from Jan. 1, 2022 to Nov. 30, 2025 and must be submitted by Jan. 15, 2026.

Last October, the DPWH and the IC signed an agreement to fast-track claims of performance and surety bonds in relation to anomalous flood control projects.

“The report shall include the details of issued bonds required by or in favor of government agencies, instrumentalities, judicial authorities and government-owned and controlled corporations,” the circular read.

A penalty will be imposed for delayed or incomplete report submissions considered as non-submissions. The commissioner may also enforce sanctions and regulatory actions under existing laws for any non-compliance, including failure to report issued bonds.

In a separate circular, the IC also ordered non-life insurance companies authorized as surety to review and update its bond underwriting guidelines.

“The company shall maintain the said underwriting guideline duly approved by the board, supported by adequate technical competence, risk management practices and the necessary infrastructure,” it said.

The insurance regulator stated that the company must implement internal risk assessment systems to assess the technical and financial capabilities of principals both prior to and following underwriting.

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