Insurance Commission urged to promote trust and transparency in financial products

Finance Secretary Benjamin Diokno called on the Insurance Commission (IC) to explore new initiatives that promote trust and transparency in financial products and encourage the public to invest in financial protection.

“I expect the officials of the Insurance Commission to continue exploring new initiatives to properly perform its mandate which is to protect the financial consumers of the insurance, pre-need, and HMO industries”, said Secretary Diokno during the IC’s 74th Anniversary on February 17, 2023 at the Philippine International Convention Center (PICC), with the theme “Reigniting the Industry Towards a Resilient Community.”

Secretary Diokno urged the IC to issue the implementing rules and regulations (IRR) of the Financial Consumer Protection Act (FCPA) to increase the consuming public’s trust in the insurance, pre-need and Health Maintenance Organization (HMO) industries by equipping all relevant government institutions and financial regulators with the legal authority to enforce prudent, responsible, and customer-centric standards of business conduct.

He also called for the regular review and assessment of all pertinent statutory provisions and Commission-issued implementing rules and guidelines so that operations are at par with international standards and globally accepted best practices.

At the same time, Secretary Diokno reminded the IC to remain vigilant and ensure the fairness of premiums collected, saying, “These products involve computations that are not readily clear to the public. It is our responsibility to ensure that products sold to our consumers are fair and truly protect them.”

In order to achieve greater financial inclusion in the country, Secretary Diokno encouraged the IC to implement digital transformation initiatives that make financial products transparent and accessible to the consuming public.

Despite the global health emergency that threatened the economy, the Philippine insurance sector managed to thrive.

In the third quarter of 2022, the HMO industry’s total assets grew by 8.6 percent from 2021, settling at PHP56.0 billion. Total revenues and total capital stock also grew in the third quarter by 8.5 percent and 44.6 percent, respectively.

Moreover, the delivery of Health Care Benefits and Claims by HMOs increased by 35.9 percent as of end-September 2022, amounting to PHP31.93 billion.

“These accomplishments attest to the industry’s resilience under the Commission. The Marcos administration envisions a society that is prosperous, resilient, and fair. This requires trust and transparency,” he said in closing.