In 1930, equipped with a vision and determination to serve the nation and render insurance protection to the Filipino people, Enrique T. Yuchengco founded China Insurance and Surety Company, Inc. Little did he know that the company he established in Binondo, Manila, would evolve to be the country’s premiere non-life insurance organization in the years to come.
Don Enrique T. Yuchengco was a dynamic leader who gained a reputation as a hard driving executive who made marks in business ventures. Don Enrique noted that there were more than 80 non-life insurance companies in the market. He believed that there was a need for an insurance company that the people could depend on to serve and protect them through fair dealings and speedy settlement of just and valid claims.
Investing Php 147,500 to start his company’s operations in 1930, he and his eight agents slowly moved into the competitive world of insurance amidst resistance from already established firms.
China Insurance grew into one of the major insurance companies of the country that by 1940, its gross premium income rose to more than Php 700 thousand and its total assets reached more than Php 400 thousand while generating a total business of Php 1,116,248.34. Unfortunately, the tide of the times abruptly changed as World War II broke out. Business collapsed and the company’s operations were suspended.
After recovering from the ravages of the war, it resumed operations and buckled down to work. War claims, which were not within the scope of the conditions of the policy, were nevertheless paid ex-gratia.
On February 16,
1949, the same stockholders of China Insurance, headed by Don Enrique, infused
fresh capital and formed Malayan Insurance Company, Inc. The new name was
conceived in response to the new social atmosphere of building a brown race
identity - the Malay race.
Since then, Philippine luminaries in business and public service, at one time or another, served as the company’s Chairman of the Board: Mariano Cuenco - the President of the Philippine Senate; Alfonso Sycip - renown banker and business tycoon; Carlos P. Romulo - President of the United Nations General Assembly; and Alfonso T. Yuchengco - Philippine Ambassador to the People’s Republic of China (1985 to 1987), Japan (1995 to 1998), and the Philippine Permanent Representative to the United Nations (2001 to 2002). In 1953, after Don Enrique passed away, Alfonso T. Yuchengco, an accomplished Certified Public Accountant and a rising figure in the local business sector, assumed full responsibility over Malayan.
Determined to expand the organization, Alfonso T. Yuchengco established a new company, Bankers and Manufacturers Assurance Corporation (BMAC), which was incorporated in September 6, 1955. This formed the nucleus of the Malayan Group of Insurance Companies (MGIC). BMAC maintained the corporate name for 25 years and was eventually changed to Malayan Zurich Insurance Co., Inc. in 1980 resulting from a tie-up with Zurich Insurance Co. of Switzerland. Today Malayan Zurich is known as Bankers Assurance Corporation (BAC) as a result of Zurich Insurance’s exit from the Philippine market. However, Malayan Insurance and BAC remain to be cooperative partners of Zurich Financial Services. As member of the Malayan Group, the BAC is focused on the microinsurance sector as well as the overseas Filipino worker (OFW) market.
On May 12, 1964, another non-life firm, Pan-Malayan Insurance Corporation, was incorporated into the joint venture of Malayan Insurance Company, Inc. (MICO), Continental Insurance Group, and Tokio Marine & Fire Insurance Co., Ltd. However, in February 1997, the joint venture was re-established between MICO and Tokio Marine, under the name Tokio Marine Malayan Insurance Co., Inc. The merger of MICO and Tokio Marine, which took place in September 2008, made Malayan the unbeatable insurance company in the Philippines. The third domestic non-life insurance company that joined the Malayan Group was the First Nationwide Assurance Corporation (FNAC) on June 11, 1965. In 2011, FNAC obtained certification from the Banko Sentral ng Pilipinas (BSP) as bancassurance partner of the Rizal Commercial Banking Corporation. The Malayan Reinsurance Corporation (formerly called Eastern General Reinsurance Corporation) was established on October 17, 1975 and completed the five member companies of the MGIC. This professional reinsurance company, known as Malayan Re, merged with the Universal Reinsurance Company of the Ayala Group on January 30, 2004, and was called Universal Malayan Re (UMRe). In early 2006, the Securities and Exchange Commission approved the merger of UMRe and the National Reinsurance Corp. of the Philippines, utilizing the latter as its official company name.
The machinery
for local and global expansion was set. Foreign branches, subsidiaries,
affiliates, and agencies were organized. In the home front, regional offices,
branches and service offices were opened in Luzon, Visayas, and Mindanao.
When Helen Y.
Dee was elected president of MICO in 1983, she spearheaded the firm’s domestic
expansion and modernization programs through innovative developments in
manpower training and insurance products. She also improved the employees’
technical skills, computerized the underwriting operations and improved
customer support services. The company further strengthened its industry
leadership through Mrs. Dee’s and Mr. Yuchengco’s efforts.
In 1995, Fidel
M. Alfonso, a luminary in the local insurance industry and Yvonne S. Yuchengco,
a well-known banker and civic leader, were elected Chairman of the Board and
President of MICO, respectively. Through their continued efforts in pursuing
MICO’s corporate mission and in strongly supporting programs to fully realize
the Company’s vision, Malayan reached new heights in performance and
achievements. In early 2001, former Insurance Commissioner Atty. Adelita A.
Vergel De Dios, was elected chairman of MICO. Equipped with her experience and
expertise in the industry, Atty. Vergel De Dios guided MICO towards maintaining
its position as the country’s leading non-life insurance company. In 2008, MICO
further consolidated its resources and capabilities for a bigger, stronger
company through its merger with Tokio Marine Malayan Insurance Corporation. It
was also in this year that Mrs. Helen Y. Dee rejoined MICO as Chairman.
In 2009,
Malayan Insurance received an ISO 9001:2000 certification from Certification
International U.K. Ltd. This attests to the company’s commitment to adhere to
globally accepted quality management standards. Likewise, A.M. Best Co. and
Standard & Poor’s, two of the world’s most credible ratings agencies, gave
MICO a “generally stable financial strength rating.” A.M. Best affirmed the
company’s financial strength rating of B++ (Good) and the issuer credit rating
of “bbb,” while S&P gave a rating of BB- Stable, citing Malayan’s strong
market position that offsets the volatility of its operating environment. Both
agencies recognize MICO’s strong business position as the largest non-life
insurance company in the Philippines.
When MICO
celebrated its 80th anniversary in 2010, it achieved another milestone in
posting Php 5.97 billion in Gross Premium Written (GPW), 44% higher than its
next-ranked competitor. It also posted a 36% growth in Net Underwriting Profit
or Php 527 million. In the same year, MICO Chairperson Helen Y. Dee represented
the Philippines in the 6th International Microinsurance Conference held in
Manila, and was a panelist during the discussion on the profitability of
microinsurance. Ambassador Alfonso T. Yuchengco was likewise honored with a
Lifetime Achievement Award by the Asia Insurance Review and the Review
Worldwide Reinsurance Magazine during the 14th Asia Insurance Industry Awards.
MICO also successfully transitioned to the ISO 9001-2008 standard in the same
year.
The year 2011
proved to be another auspicious year for MICO as it joined the Yuchengco Group
of Companies (YGC) in celebrating its Centennial Anniversary. Malayan’s largest
branch, MICO Davao rejoiced in reaching its golden jubilee. These highlights
were made even sweeter as MICO gained honors and accolades from its industry
peers.
In its
inauguration in 2011, the Philippine Insurers and Reinsurers (PIRA) Awards
cited MICO with the Best in Corporate Governance in recognition of its
adherence to sound ethical practices, and the Best in CSR for its unique,
sustainable and high-impact CSR. These feats will be repeated in 2012 as the
MICO Group hauled four major awards at the 2nd PIRA awards, winning the Best in
Corporate Governance and Best in Corporate Social Responsibility awards.
Subsidiaries FNAC and BAC also bagged the Best in Corporate Governance
awards. Ambassador Alfonso T. Yuchengco
was also honored during this event, receiving PIRA’s very first Icon of the
Industry Award, complementing the Ambassador’s Outstanding Leadership Award
given by the Philippine Constitution Association during the group’s 50th
anniversary in 2011. In the same year, the Afro-Asian Insurers and Reinsurers
(FAIR) installed the Ambassador as its first FAIR Hall of Fame Awardee in
recognition of his invaluable contributions to the industry.
Malayan reached another milestone in 2012 with the development of the Malayan Facebook (FB) Store to jump into the social media bandwagon for insurance sales opportunities. MICO is the first to offer its services through Facebook. In fact, in the entire Asia Pacific region, only MICO has harnessed FB as a selling channel. To enhance the Malayan Group's ability to distribute insurance online, Malayan obtained approval to issue policies via digital format. MICO clients have an option to receive their policy in electronic form (e-policy), as recognized by the Insurance Commission.
MICO launched
the Polisy/Asia (P/A) business system in 2012 which ushered the company to a
new level of customer servicing. Polisy/Asia is a powerful business suite for
all lines of insurance which features end-to-end policy/group management,
product configuration, and business analytics capabilities.
When MICO
celebrated its 83rd anniversary in 2013, it has raised the ante by officially
launching its e-commerce site, the Malayan online store (www.malayanonline.com)
to complement its FB store and level-up its product offerings. The Malayan
online store is the first insurance shop in the country capable of online
transactions, giving Malayan a new distribution channel for its clients with a
broader access to excellent products. Malayan also introduced another first in
the non-life insurance industry – a mobile app for mobile phone users. The
mobile app initially caters to the Motor Car line, where clients can report and
file motor car claims via their mobile phones or tablets immediately at the
scene of the accident. It is also equipped with a branch and repair shop
locator including key emergency contact numbers.

Malayan
introduced a process innovation in 2013 called “Issuance of Electronic
Confirmation of Cover by Malayan Insurance via e-mail to Cebu Pacific
customers”, which bested entries from other YGC companies in the YGC Wow!
Minds@Work Best Process Improvement Network (PIN) Project of the Year Award.
In 2014, Malayan
developed the Internal Capital Model, as part of Enterprise Risk Management
program, to help the company measure the amount of capital needed to cover
various risks, to assist in strategic planning, and to optimize reinsurance
among others. The development of an
Internal Capital Model was initially focused on the Underwriting Risk
component. Malayan has also embarked on a total review of the Business
Continuity and Resiliency Plan (BCRP), which is spearheaded by the Executive
Management Committee. The BCRP includes
an updated IT Recovery Plan and crisis communication protocols to ensure the
delivery of services during unforeseen events.
2015 was a significant year for
Malayan Insurance as it celebrated its 85th year in the non-life
insurance business. MICO made further progress when it continued to post
satisfactory gains in Gross Premiums Written (GPW) registering P8.4 billion in
2015, showing a growth rate of 14.6% from previous year. This feat marks the 46th
consecutive year—since 1970—that Malayan Insurance has been ranked in the
number one position, solidifying Malayan Insurance’s reputation as the most trusted non-life insurer in the country. Tokio Marine
Division (TMD) also passed the P1 billion mark when it generated GPW amounting
to P1.022 billion. Subsidiaries FNAC and
BAC have also celebrated its 50th anniversary and 60th
anniversary, respectively, in the same year.
MICO marked its 86th
founding anniversary in 2016 with a renewed determination to strengthen its presence
in the industry as it constantly enhances its products and services, and
reaches out to more Filipinos.
In 2016, MICO launched
auto.malayan.com, the first of its kind in the country where clients can buy
car insurance online, instantly. Clients may simply go online and apply for
comprehensive car insurance, get an instant quote, pay the corresponding fees
online, and own a car insurance in 20 minutes or less totally hassle-free.
Submission of claims can be done online as well.
Malayan has also recognized
intensified calls for greater cyber security in Philippine business as it
gathered together various industry leaders for a Forum to discuss the
importance of cyber security insurance in August 2016. The Forum on Cyber
Insurance provided a broad overview on the different risks on a corporation's
information technology (IT) systems and database, and the latest preventive
measures against cybercrimes. The Forum featured field experts from Munich Re,
one of the world's leading reinsurance companies, and Ultimate Risk Solutions,
an independent financial modelling and predictive analytics company.
In
2018, Malayan Insurance receives ISO 9001:2015 Certification, further
strengthening Malayan’s commitment to its customers. The company has also
retained its financial strength rating of B++ (Good) and issuer credit rating
of “bbb+” with a stable outlook for both categories, from A.M. Best.
Malayan has also long fostered
various philanthropic drives with strong focus on helping indigent communities
alleviate their lives. Since 2000, Malayan's Street Education Program (SEP), in partnership with San Lorenzo Ruiz Parish and
Childhope Asia Philippines Foundation, aims to integrate street children to
formal school by providing basic literacy and numeracy class. The Malayan SEP
is one of the longest running street children alternative learning programs in
the Philippines, as recognized by the Department of Education.
The Malayan
Group also actively participates in nationwide assistance programs of the AY
Foundation, the Yuchengco Group’s philanthropic arm, which regularly holds
medical and dental missions, and relief operations. Malayan has also shown
unrelenting support in other Yuchengco Group projects such as the Buhay Rizal
Values Campaign, which is centered on promoting the values espoused by National
Hero Dr. Jose P. Rizal, and the YGC Earth Care Program, which seeks to raise
the level of awareness on the need for environment protection.
Malayan stands
at the forefront of the non-life insurance industry - THE COUNTRY’S NUMBER ONE
NON-LIFE INSURANCE COMPANY. It is proud of its achievements as much as it is
proud of its contributions to the development of the Philippine non-life
insurance industry and to the progress of the Filipino nation. Guided by its
tradition of excellence and its vision of becoming synonymous to non-life
insurance, it has become a towering symbol of Filipino entrepreneurship and
dynamism.