outbrain
Close  

Bancassurance rules tightened

By: - Reporter / @bendeveraINQ
/ 06:19 AM May 01, 2015

MANILA, Philippines–The Insurance Commission has tightened the rules covering bancassurance activities in a bid to better protect consumers.

Under Circular Letter No. 2015-20, issued by Insurance Commissioner Emmanuel F. Dooc last April 27, the sale of insurance products within bank premises is allowed only upon the Insurance Commission’s approval of the bancassurance agreements between banks and insurance companies.

ADVERTISEMENT

Bancassurance, which involves cross-selling of insurance products within Bangko Sentral ng Pilipinas (BSP)-licensed banks, was institutionalized by the Amended Insurance Code under Republic Act No. 10607.

As for cross-selling microinsurance products by cooperative, rural and thrift banks, such activities will continue to be covered by BSP Circular No. 683 issued in 2010.

FEATURED STORIES

The Insurance Commission said it would require all bancassurance agreements to contain a provision wherein insurance firms would agree to submit reportorial requirements, including annual reports that would show a list of the banks with which they had duly executed bancassurance agreements.

“In order to protect the insuring public, the [implementing rules and regulations] provide that both the banking institution and insurance company should formulate an effective consumer protection framework specifically designed to address all complaints that may arise from the conduct of bancassurance which will include processes and procedures,” the Insurance Commission said.

“The rules on bancassurance provide for provisions on enhanced consumer protection requirements by providing the minimum practices to be observed in the selling of variable life insurance products,” it added.

Subscribe to Inquirer Business Newsletter
Read Next
EDITORS' PICK
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: bancassurance, Consumer Issues, Insurance Commission, Philippines
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2020 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.