March 21, 2023

IC urged to allow online selling of insurance products

The Insurance Commission (IC) should examine enabling internet shopping platforms to market insurance products, according to a policy paper issued by life insurer Pru Life UK.

Pru Life UK (2023) has issued a policy paper titled “InsurTech: Driving Broader Insurance Access” advocating for the Insurance Commission (IC) to consider allowing internet shopping platforms to market insurance products. The policy paper was authored by law firm Romulo Mabanta Buenaventura Sayoc & de los Angeles and argues that the full potential of online shopping platforms in the Philippines has not yet been realized. The paper suggests that the IC should examine the possibility of online shopping platforms and electronic wallets serving as intermediaries for the sale and distribution of insurance products, which would make life and health protection products more accessible. According to Pru Life UK CEO Eng Teng Wong, digitalization has impacted many aspects of daily life, but insurance penetration in the Philippines is still low with less than 2% of the national Gross Domestic Product (GDP) being invested in insurance. Wong believes that by combining the efforts of financial advisors with the power of mobile and online apps and platforms, accessibility to affordable life and health insurance solutions can be increased. The FinTech Alliance Philippines, the country’s leading digital trade organization, has expressed support for Pru Life UK’s policy paper.