Insurers now allowed to sell products online

MANILA, Philippines — The Insurance Commission (IC) has allowed domestic life insurance companies to launch information and communications technology (ICT)-powered initiatives that will enable them to sell their products despite the coronavirus disease 2019 (COVID-19) pandemic.

Insurance Commissioner Dennis Funa said life insurers could utilize technological tools to sell their products without prior approval from the Commission.

“This Commission recognizes the impracticability of the sale of life insurance products on a ‘face-to-face’ basis during the enhanced community quarantine period and by reason of the stringent social distancing measures imposed by authorities,” Funa said.

As such, Funa said there is a need to provide a framework that will enable the continuous provision of benefits of life insurance products to the public, while at the same time keeping with the quarantine and social distancing measures.

Under the circular, all life insurance companies in the country will be allowed to launch, during the enhanced community quarantine period, initiatives that aim to sell their products by utilizing ICT, such as teleconferencing, video conferencing, or audio conferencing, without prior approval from the IC.

This is, however, subject to the registration of such initiatives, through the submission of a letter to the IC, signed by the company’s president or authorized representative.

Life insurers must also submit the mechanics of the initiative, which shall describe in detail the covered period, areas where the company or its intermediaries will operate, and the name of products covered.

Funa said the IC may order a company to recall its initiative if it finds any violation of the law or existing rules and regulations.