Philippine Insurers Want New Code

Speaker
Feliciano Belmonte

The country's insurers are pushing for the speedy passage of proposed changes in the 1974 Insurance Code of the Philippines.

Speaking before members of the Philippine Life Insurance Association (PLIA) on January 25, 2011, House Speaker Feliciano "Sonny" Belmonte agreed that such antiquated pieces of legislation must be amended and updated.

There are currently four bills filed in Congress proposing amendments to the Insurance Code:  two with the Senate and the two with the House of Representatives.

A good number of the provisions of the 1974 Insurance Code are already obsolete.  Some are inflexible and cannot keep pace with the changing times, such as new risks and new international developments including recognition of insurance products such as variables (investment-laced), bancassurance, microinsurance, the licensing process of insurance agents, and the types of investments allowed for insurers.

The proposed amendments give the Insurance Commission (IC) more powers to lead and regulate the industry.