New normal for insurance products: Online sales until Dec. 31
With social distancing seen outliving the COVID-19 pandemic, the Insurance Commission (IC) allowed insurance transactions online until end of 2020.
The IC, in two circulars issued on May 14, extended the period allowing no physical contact sales of life and non-life products until Dec. 31, 2020.
Insurance Commissioner Dennis B. Funa said in the circulars that doing so will help life and non-life insurers to “respond to new global conditions engendered by the COVID-19 pandemic, otherwise known as the ‘new normal.’”
The IC earlier approved online sales initiatives as Funa had noted that face-to-face transactions had already been rendered “impractical” during quarantine.
The IC had allowed the sale of insurance products through remote communication, like teleconferencing, videoconferencing, computer conferencing, and audio conferencing, even without the regulator’s prior approval.
But the IC had required insurance companies to register these non-traditional sales initiatives and inform the regulator about their mechanics soon after launching them.
Upon registration with the IC, sales agents may use communications technologies to get potential customers’ minimum information, as well as identification documents needed for customer due diligence.
In case an insurance firm violated any law or other rules and regulations, the IC can recall their non-traditional sales.
Edited by TSB
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