Insurance Commission (IC) Philippines

The Insurance Commission (IC) of the Philippines, established during the Spanish colonization period, regulates and supervises the insurance industry, including pre-need and Health Maintenance Organizations (HMOs).

It operates under key legislations like the Insurance Act of 1915 and Republic Act No. 10607, ensuring the solvency of insurance companies and protecting Filipino policyholders.

With a mission to implement prudent regulatory policies and a vision of creating a globally competitive insurance market, the IC plays a major role in safeguarding the financial and economic stability of the country.

Insurance Commission
Credits: Vladimir Quindoza / Google Maps

History of the Commission

The concept of insurance in the Philippines dates back to the Spanish colonization period. Initially, insurance laws were embedded in the Spanish Code of Commerce and the Spanish Civil Code of 1889. 

The industry saw significant growth with the establishment of foreign and domestic insurance companies such as Sun Life Assurance of Canada in 1898 and Yek Tong Lin Insurance Company in 1906. 

The first life insurance company, Insular Life Assurance Co., Ltd., was established in 1910.

Recognizing the industry’s expansion, the Philippine Legislature enacted Act 2427 in 1914, which became known as the Insurance Act, effective July 1, 1915. 

This act laid the foundation for modern insurance regulation in the country. 

Over the years, the Insurance Commission evolved, notably becoming an independent office in 1949 and adopting the Insurance Code of 1978, further amended in 2013 by Republic Act No. 10607.

Legal Framework

The Insurance Commission operates under a robust legal framework to regulate and supervise the insurance, pre-need, and Health Maintenance Organization (HMO) industries. Key legislations include:

  • Insurance Act (1915): Established initial regulations for the insurance industry.
  • Presidential Decree No. 612 (1974): Instituted the Insurance Code of the Philippines.
  • Republic Act No. 9829 (2009): Known as the Pre-Need Code of the Philippines, regulating pre-need companies.
  • Republic Act No. 10607 (2013): Amended the Insurance Code to reinforce industry regulations.

These laws promote the solvency of insurance companies, protect policyholders, and foster industry growth.

Mission and Vision

Vision Statement

“Strong, sustainable, and globally competitive regulated entities, as pillars of the economy, to serve every Filipino.”

Mission Statement

“We are committed to implementing prudent and progressive regulatory and supervisory policies at par with international standards.”

Core Values

  • Integrity: Upholding honesty and transparency.
  • Commitment: Sustaining global standards and best practices.
  • Responsibility: Promoting accountability and dedication.
IC logo
Credits: Insurance Commission / Facebook

Significance of the IC

The Insurance Commission (IC) of the Philippines plays a significant role in providing financial and economic stability.

Its impact extends beyond regulation, significantly affecting policyholders, the insurance industry, and the broader economy.

Protecting Policyholders

The IC enforces stringent regulations to safeguard policyholders against fraud, insolvency, and unfair practices, thereby maintaining public trust and encouraging insurance uptake.

Supporting Industry Stability

Through regular audits and compliance checks, the IC supports the financial health of insurance companies, creating a stable environment for providers and supporting overall economic health.

Promoting Market Development

The IC fosters market growth by conducting research, promoting competitive practices, and encouraging innovation, making the insurance sector more dynamic and consumer-responsive.

Enhancing Consumer Confidence

The IC’s commitment to transparency and fairness boosts consumer confidence, leading to increased engagement with and investment in insurance products.

Supporting Economic Growth

By providing a safety net against losses, the IC’s regulation of the insurance industry supports investment and economic activity, contributing to broader economic resilience.

Facilitating Financial Inclusion

The IC promotes financial literacy and inclusion, making insurance accessible to underserved communities, thus contributing to social and economic equity.

Adjudicating Disputes

The IC provides an efficient mechanism for resolving disputes, promoting fair treatment and maintaining harmony between consumers and insurance providers.

Setting Standards and Best Practices

By aligning local regulations with international standards, the IC promotes professionalism, ethical conduct, and operational efficiency within the insurance industry, fostering global competitiveness.

Programs and Services

The Insurance Commission (IC) of the Philippines offers a comprehensive range of programs and services designed to protect policyholders and promote the stability and integrity of the insurance industry. 

These services are important in maintaining public trust and fostering a robust insurance market. 

Regulation and Supervision

The IC makes sure that all insurance entities, including companies, brokers, and agents, comply with the country’s laws and regulations.

This involves regular audits, inspections, and the enforcement of rules to maintain market discipline.

By monitoring the financial health of insurance companies, the IC helps prevent insolvencies and protects policyholders’ interests.

 

Issuance of Certificates of Registration

Before an insurance entity can operate in the Philippines, it must obtain a certificate of registration from the IC.

This process involves a thorough evaluation to ascertain that the company meets all legal and financial requirements.

The IC’s stringent criteria help maintain high standards within the industry, promoting consumer confidence.

Adjudication of Claims

The IC handles disputes and complaints between policyholders and insurance providers, with the authority to adjudicate claims up to ₱5,000,000.

This service provides a faster, more efficient alternative to the traditional court system, ascertaining that policyholders receive fair treatment and timely resolutions.

By addressing grievances promptly, the IC reinforces trust in the insurance system.

Approval of Insurance Policies

All life and non-life insurance policies must be reviewed and approved by the IC so that they comply with regulatory standards.

This scrutiny sees to it that policy terms are fair, clear, and beneficial to consumers, preventing misleading or harmful practices.

The IC also oversees the pricing of insurance products to make sure they are reasonable and competitive.

Public Assistance

The IC provides various support and information services to the public through its Public Assistance and Mediation Division.

This includes answering inquiries, offering guidance on insurance matters, and assisting with complaints.

The division is accessible via multiple channels, including phone, email, and in-person visits, making it easy for policyholders to seek help.

Consumer Education Programs

The IC conducts regular consumer education programs to inform the public about their rights and responsibilities as policyholders.

These programs cover a wide range of topics, including understanding insurance products, the claims process, and the benefits of different types of insurance.

By educating consumers, the IC empowers them to make informed decisions and protects them from fraudulent practices.

Financial Literacy Initiatives

In partnership with other government agencies and private organizations, the IC promotes financial literacy among Filipinos.

These aim to enhance the public’s understanding of insurance as a major component of financial planning and risk management.

Through seminars, workshops, and information campaigns, the IC helps build a financially savvy populace.

 

Market Development and Research

The IC conducts research and analysis to support the development of the insurance market.

This includes studying industry trends, assessing market needs, and identifying opportunities for innovation and growth.

The insights gained from these activities help shape policies and programs that foster a dynamic and competitive insurance sector.

How to Set an Appointment with IC

To set an appointment with the Insurance Commission, stakeholders can utilize the IC Appointment Reservation System (ICare) available on the IC website. Here’s a step-by-step guide:

  1. Visit the IC Website: Go to www.insurance.gov.ph or directly to the appointment system ICare.
  2. Book an Appointment: Select the service needed and choose an available slot.
  3. Confirm Booking: Follow the link sent via email to confirm your appointment.
  4. Appointment Day: Show your appointment slip on the scheduled date.

Appointments are subject to slot availability, so it is advisable to book early.

how to set an appointment
Screengrab taken from the IC website

Recent Updates

FSCC Monitors Global Risks Impacting Philippine Financial System

The Financial Stability Coordination Council (FSCC) recently held a meeting to assess global market developments and their potential effects on the Philippines’ financial stability. The Council acknowledged the overall stability of global markets, but also highlighted concerns such as volatile oil prices, high US inflation, and escalating geopolitical risks. The FSCC will continue to monitor these factors and take appropriate measures to mitigate any potential risks to the Philippine economy. (IC)

Non-Life Insurance Sector Performance in Q1 2024

The Insurance Commission reported a 6.98% increase in net premiums written by non-life insurance companies, totaling ₱16.99 billion in Q1 2024.
This growth is primarily driven by higher premium collections from motor vehicle and fire insurance.
Despite a slight decline in total premiums earned, the sector showed resilience with a notable increase in gross premiums written. (IC)

HMO Industry Sees Revenue and Profit Increase in Q1 2024

The Health Maintenance Organization (HMO) industry in the Philippines experienced a significant rise in total revenues, amounting to Php18.68 billion in the first quarter of 2024, a 20.09% increase from the same period last year.
This revenue boost, primarily driven by higher membership fee collections, allowed the industry to return to profitability with a net income of Php6.8 million despite a 17.3% increase in healthcare benefits paid out.
Total assets also grew by 10.07% to Php71.31 billion, reflecting the industry’s robust financial performance. (IC)

Microinsurance Premium Contributions Surge in 2023

The microinsurance industry in the Philippines saw a significant increase in premium contributions, growing by 17.35% to Php13.54 billion in 2023.
This growth was driven by higher premium collections across Mutual Benefit Associations (MBAs), life insurance, and non-life insurance sectors.
As of year-end 2023, microinsurance policies covered 56.62 million Filipinos, with MBAs insuring the largest share at 28.6 million lives. (IC)

Video: ANO ANG MAITUTULONG SAYO NG INSURANCE COMMISSION?

This video showcases the history of the Insurance Commission in the Philippines from pre-Spanish colonization to the present day. It also highlights the powers of the Insurance Commission and how it aids the Filipino populace.

 

Conclusion

The Insurance Commission of the Philippines plays an indispensable role in regulating the insurance sector, ascertaining the financial stability of insurance companies, and protecting the interests of policyholders.

Through its comprehensive legal framework, mission-driven approach, and efficient services, the IC continues to uphold the integrity and growth of the insurance industry in the Philippines.

Understanding the IC’s history, functions, and services enables stakeholders to better navigate the insurance landscape and benefit from its protective measures.

Contact Information

For assistance or inquiries, stakeholders can contact the IC through various channels:

  • Unified Trunk Line: (02) 8523-8461
  • Public Assistance and Mediation Division:
    • Local Numbers: 103 and 127
    • Mobile Numbers: (0917) 116-0007 (Globe) and (0999) 993-0637 (Smart)
  • Email: publicassistance@insurance.gov.ph
  • Website: www.insurance.gov.ph 

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