Quantcast
Latest Stories

Bancassurance rules for thrift banks set

By

THE BANGKO Sentral ng Pilipinas will require thrift banks to own at least 5 percent of insurance firms they will partner with for the purpose of cross selling financial products.

This was according to BSP Deputy Governor Nestor Espenilla Jr., who said the bancassurance rules that will apply to thrift banks will be the same as those currently observed by universal and commercial banks, which are required to have a minimum 5-percent share in insurance firms they have partnerships with.

Bancassurance refers to the practice of banks selling insurance products. Currently, only universal and commercial banks are allowed to engage in this type of activity. Soon, however, thrift banks will be allowed to do the same.

“The [cross selling] framework for thrift banks will have to be the same as those for universal and commercial banks,” Espenilla said, adding that the guidelines covering the cross selling of insurance products by thrift banks will be released by the BSP early next year.

He said the draft guidelines had already been circulated among industry members, and the BSP is already in the process of consolidating their inputs.

Requiring banks to have a stake in insurance firms they have bancassurance agreements with is intended to help ensure banks will exercise accountability over the products they will sell, Espenilla said. If banks are to sell insurance products, the central bank official added, they must share with the insurance firms the responsibility over the quality of the products.

The decision to allow thrift banks to engage in bancassurance is aimed at making insurance products more accessible to average Filipinos. Regulators noted that thrift banks, which are bigger in number and are more geographically scattered, have a wider reach of consumers.

Moreover, allowing thrift banks to sell insurance products is consistent with the goal of increasing the penetration rate of the insurance industry in the Philippines.

Currently, only 4.5 percent of Filipinos are covered by insurance, according to industry estimates.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: bancassurance rules , Bangko Sentral ng Pilipinas , Business , thrift banks



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Title of new Hillary Clinton book: ‘Hard Choices’
  • Filipinos, Dutch re-enact crucifixion of Christ
  • 14 killed in car bombing in Homs
  • 57-nation group plays key Ukraine monitoring role
  • French President Hollande’s top aide resigns
  • Sports

  • Nadal ousted by Ferrer in Monte Carlo quarters
  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Whoopi Goldberg debuts as marijuana columnist
  • ‘X-men’ director accused of sex assault on teen boy
  • Business

  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Oil prices mixed ahead of long Easter weekend
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Filipina accomplice arrested for fake bills in Malaysia
  • DoH denies Filipino nurse no longer positive for MERS virus
  • WHO warns vs spread of MERS-Cov, urges vigilance in taking precautions
  • Last call for nominations to ’14 Presidential Awards
  • San Francisco business coalition slams proposed tax on sugary drinks
  • Marketplace