Regulatory Bodies and Legislative Guidance

• Insurance Code (the Code)


  The main piece of legislation governing the insurance business
• Insurance Commissioner


  • Has the duty to see that all laws relating to insurance, insurance companies and other insurance matters, mutual benefit associations, and trusts for charitable uses are faithfully executed
  • Has the sole and exclusive authority to regulate variable contracts as defined by law and to provide for the licensing of persons selling such contracts
  • Can issue rulings, instructions, circulars, orders and decisions as may be deemed necessary to secure the enforcement of the provisions of the Insurance Code
• Decisions by the Insurance Commissioner


  Are appealable to the Secretary of Finance
• Insurance is regulated by various laws and regulations
• Other government agencies involved in the regulation of insurance and reinsurance in the Philippines include the Securities and Exchange Commission of the Philippines (SEC) and the Bangko Sentral ng Pilipinas (BSP, the Central Bank of the Philippines). The AntiMoney Laundering Council (AMLC) and the Philippine Competition Commission (PCC) also have regulations that are applicable to or affect the insurance industry
• As the government agency tasked to regulate corporations, partnerships and associations, entities intending to engage in the business of insurance must submit to the jurisdiction of the SEC and obtain the license for the appropriate structure in order to be entitled to conduct insurance and reinsurance in the Philippines
• The PIC exercises primary authority over insurance companies which are deemed special corporations under the Revised Corporation Code which governs corporations, partnerships and associations.
• The BSP is the central monetary authority of the Philippines and supervises the operations and activities of banks and certain non-bank financial institutions. Certain issuances of the Monetary Board of the BSP affect the insurance industry because of, for instance, the inclusion of bancassurance in the Insurance Code.
• Insurance companies, pre-need companies, and all other persons supervised or regulated by the PIC are considered “covered persons” under the Anti-Money Laundering Act of 2001 and the Terrorism Financing Prevention and Suppression Act of 2012. The Anti-Money Laundering Council, of which the Insurance Commissioner is a member, is tasked with implementing these laws, and may promulgate pertinent rules and regulations which will affect companies regulated by the PIC, including those engaged in insurance and reinsurance.
• The PCC, created under the Philippine Competition Act, is tasked with the implementation of that Act, including the review of proposed mergers and acquisitions to the extent that the relevant transaction exceeds certain thresholds set out by law and regulations. This means that proposed mergers and acquisitions involving companies engaged in insurance and reinsurance may have to be submitted to the PCC for review and clearance.