Founded on January 3, 1949, via Republic ACT No. 275, the Insurance Commission (IC) was established to regulate and supervise the Insurance, Pre-Need and Health Maintenance Organization (HMO) industries in the country.
From the modest start, the IC has grown into a progressive agency, which consistently strives for global norms and implement best practices to serve the Filipino people.
According to the report of the 2024 of the Commission, the insurance density P3.882.77 reached an increase of 12.58% compared to P3.457.84 in 2023. Insuratititeetration, which the contribution of the industry to the gross domestic product ( GDP) of the country measures from 1.62% in 2023 to 1.67% in 2024.
“This is explained by the faster growth of the insurance premiums in relation to the growth of 8.84% in GDP (in current prices), which underlines a stronger expansion within the insurance and MBA sectors (Mutual Benefit Association) from Q4 2024, “said insurance commissioner Reynaldo A. Regalado.
The total number of recognized insurance companies grew to 137, an increase compared to 136 in 2023. The number of companies that has submitted reports, however, decreased from 132 to 128, a decrease of 3.03%.
In the meantime, the total assets of the industry grew by 6.43%and P2.46 trillion reached in 2024, compared to P2.31 trillion in 2023. The total obligations also increased by 7.09%, which amounts to P1.98 trillion of P1.85 trillion.
The assets also increased by 3.77%, from P462.4 billion in 2023 to P479.8 billion in 2024. The total invested assets of insurance companies also increased to P2.20 trillion, an increase of 7.23% compared to P2 , 05 trillion the previous year.
The report also stated that the industry collected P440.3 billion in the total premiums, an increase of 12.81% compared to 2023. Providers also paid P160.3 billion shares and claims, a jump of 18.97% of P134 , 7 billion in 2023.
The insurance committee also received an unchanged opinion, the highest rating, for its 2023 financial statements from the Commission on Audit (COA).
Reinforcement of public services
The IC recently withdrew practice to grant the permits of provisional insurance agents to strengthen stricter regulatory measures and to guarantee consumer protection and market integrity.
The IC has issued the Circular Letter (CL) No 2024-21, which explains the granting of the provisional authority for insurance agents pending their regular licenses as out of operation. This new guideline effectively retracts previous circulars that make provisional licenses possible pending regular approval.
“The issue of this circular letter is also part of the IC initiatives on consumer protection, because it ensures that only agents with properly issued regular licenses are allowed to handle the insurance audience,” Mr Regalado said .
This step is in line with Republic ACT no. 11032, the convenience of business and efficient public service law of 2018, the implementation rules and regulations (IRR) and related issues of the Anti-Red Tape Authority (Arta).
The Insurance Commission also launched its online billing and collection system, integrated in Landbank’s Link.Bizportal. The new system is expected to improve the efficiency of IC in processing costs of its regulated entities, including registration, research and supervisory costs, which considerably contribute to the income of the IC.
In the meantime, the IC has issued new guidelines with which insurance and reinsurance companies can invest in infrastructure projects under the Philippine Development Plan (PDP) 2023-2028.
The CL No. 2024-23 supports President Ferdinand R. Marcos, JR.’s eight-point socio-economic agenda in Executive Order no. 14, series of 2023. Under the new framework, regulated insurance and re-insurance companies can engage in shares or debt investments, performance as financiers or sponsors.
“The committee will work closely with the Ministry of Finance, the National Economic and Development Authority (NEDA) and the Public-Private Partnership (PPP) to ensure that requests for these types of investments are in accordance with the policy objectives of the national government , “Said Commissioner Regalado.
Stimulate partnerships
Last December, the IC and National Privacy Commission (NPC) worked to strengthen the data privacy in the insurance sector by adopting privacy-enhancing technologies (PETS).
The initiative, formalized by a memorandum of Agreement (MOA), is intended to improve consumer protection and to guarantee insurance providers, pre -changes and organizations for health maintenance (HMOs), meet the Data Privacy Act (DPA), especially since the Insurance sector) Processes enormous amounts of personal data daily, from policy insurance to claim processing and customer service transactions.
“The insurance sector processes huge amounts of personal data daily. As a regulator in the industry, we are committed to strengthening privacy measures to protect consumer information and to maintain the integrity of the insurance sector, ”said Mr Regalado during the MOA certificate.
The IC also came to the Department of Migrant Workers (DMW) to offer a more robust support system for overseas Filipino employees (OFWS). In particular, the initiative will create a special hotline under IC’s public aid and mediation division to handle insurance-related care for OFWs. With this hotline, employees can easily report complaints abroad, seek help and obtain crucial information about their insurance policies.
In addition, the Commission has entered into a partnership with the Integrated Bar of the Philippines (IBP) to guarantee accessible legal support for persons who submit claims or complaints with regard to insurance, prophecy and HMO products. Through this initiative, marginalized citizens will receive free legal assistance, including consultation and representation during mediation, reconciliation and assessment procedures.
The Insurance Committee can now endorse complainers for the IBP, which are eligible for legal aid based on a means and merit test and the availability of volunteer lawyers.
Reaching local and global recognitions
The Philippines earned through the IC praise from colleague ASEAN countries for its access to the Takaful Market during the 27th Asean Insurance Regulations Meeting (AIRM) and the 50th ASEAN Insurance Council (AIC) meeting, held in Bandar Seri Begawan, Brunei Darussalam, from 26 to 28 November 2024.
This recognition follows the recent issue of Takaful Operator Licencies to two companies in the Philippines, in accordance with Circular Letter No. 2024-13 on the consolidated guidelines for Takaful Window operations.
Investopedia defines Takaful as a type of Islamic insurance in which members contribute money to a pool system to guarantee each other against loss or damage.
In 2023, the IC received a prize from the Presidential Communications Office (PCO) in the top requested and executive agencies category. The recognition also indicated that during the third quarter of 2023 the IC achieved a score of 98.16% for responsiveness and a score of 97.88% for reliability and integrity, resulting in a general satisfaction rate of 97.24%. – Mhicole A. Moral