What is PFRS 4?
Under the directive of the Department of Finance (DOF), the Insurance Commission (IC) is making sure that PhilHealth Insurance Corporation and the Philippine Crop Insurance Corporation (PCIC) are complying with the current Philippine Accounting Standards.
The Philippine Financial Reporting Standards 4 (PFRS 4) states that when a policyholder pays premiums to the insurance company, the company needs to set aside a reserve to cover the actual and future claims that will be made by its members.
You may want to read: