Philippines Financial Sector Assessment Program : Insurance Sector - Targeted Assessment of ICPS and Development Issues

The insurance industry in Philippines is small but growing. Insurance penetration remains below that observed in many countries in the region and very low compared to countries with similar per capita incomes in other parts of the world. During the...

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Main Author:	Gonulal, Serap Oguz
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	INSURANCE MARKET FINANCIAL SUPERVISION INSURANCE CORE PRINCIPLES INSURANCE REGULATION RISK MANAGEMENT
Online Access:	http://documents.worldbank.org/curated/en/291931629267204212/Philippines-Financial-Sector-Assessment-Program-Insurance-Sector-Targeted-Assessment-of-ICPS-and-Development-Issues-Technical-Note http://hdl.handle.net/10986/36184

id	okr-10986-36184
recordtype	oai_dc
spelling	okr-10986-361842021-08-24T05:10:44Z Philippines Financial Sector Assessment Program : Insurance Sector - Targeted Assessment of ICPS and Development Issues Gonulal, Serap Oguz INSURANCE MARKET FINANCIAL SUPERVISION INSURANCE CORE PRINCIPLES INSURANCE REGULATION RISK MANAGEMENT The insurance industry in Philippines is small but growing. Insurance penetration remains below that observed in many countries in the region and very low compared to countries with similar per capita incomes in other parts of the world. During the last five years, the Insurance Commission (IC) has made a significant effort to improve insurance regulation and supervision. The IC has considerable autonomy in practice but lacks operational supervisory independence. Improving the independence of the IC should be accompanied by measures to increase its formal accountability to the government. The assessment has identified areas for further development of IC’s supervisory approach, like risk profiling, and stronger cooperation and coordination among supervisors. A key recommendation is that IC formulate a strategy with an implementation plan to advance its risk based and market conduct supervision. While consumer protection has improved in many respects, ongoing oversight of insurance intermediaries should be improved. IC should review its resources and organization to meet the demands of a more risk-based approach. IC’s inspection methods, data collection, and reporting infrastructure (IT systems), analytical tools, and on-site inspection manuals require a major overhaul. The IC should carry out a comprehensive review of the current regulations and supervision processes and data reporting requirements with the view to reduce the regulatory burden on the industry. In conjunction with strengthening governance, transparency, and internal control requirements, own risk and solvency assessment (ORSA), and enterprise risk management (ERM) requirements should be developed and implemented on an individual entity and group basis. Enabling new product development and liberalizing tariffs should be considered as part of an IC growth strategy for the insurance sector. 2021-08-23T20:25:08Z 2021-08-23T20:25:08Z 2019-07 Report http://documents.worldbank.org/curated/en/291931629267204212/Philippines-Financial-Sector-Assessment-Program-Insurance-Sector-Targeted-Assessment-of-ICPS-and-Development-Issues-Technical-Note http://hdl.handle.net/10986/36184 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Financial Sector Assessment Program Economic & Sector Work East Asia and Pacific Philippines
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INSURANCE MARKET FINANCIAL SUPERVISION INSURANCE CORE PRINCIPLES INSURANCE REGULATION RISK MANAGEMENT
spellingShingle	INSURANCE MARKET FINANCIAL SUPERVISION INSURANCE CORE PRINCIPLES INSURANCE REGULATION RISK MANAGEMENT Gonulal, Serap Oguz Philippines Financial Sector Assessment Program : Insurance Sector - Targeted Assessment of ICPS and Development Issues
geographic_facet	East Asia and Pacific Philippines
description	The insurance industry in Philippines is small but growing. Insurance penetration remains below that observed in many countries in the region and very low compared to countries with similar per capita incomes in other parts of the world. During the last five years, the Insurance Commission (IC) has made a significant effort to improve insurance regulation and supervision. The IC has considerable autonomy in practice but lacks operational supervisory independence. Improving the independence of the IC should be accompanied by measures to increase its formal accountability to the government. The assessment has identified areas for further development of IC’s supervisory approach, like risk profiling, and stronger cooperation and coordination among supervisors. A key recommendation is that IC formulate a strategy with an implementation plan to advance its risk based and market conduct supervision. While consumer protection has improved in many respects, ongoing oversight of insurance intermediaries should be improved. IC should review its resources and organization to meet the demands of a more risk-based approach. IC’s inspection methods, data collection, and reporting infrastructure (IT systems), analytical tools, and on-site inspection manuals require a major overhaul. The IC should carry out a comprehensive review of the current regulations and supervision processes and data reporting requirements with the view to reduce the regulatory burden on the industry. In conjunction with strengthening governance, transparency, and internal control requirements, own risk and solvency assessment (ORSA), and enterprise risk management (ERM) requirements should be developed and implemented on an individual entity and group basis. Enabling new product development and liberalizing tariffs should be considered as part of an IC growth strategy for the insurance sector.
format	Report
author	Gonulal, Serap Oguz
author_facet	Gonulal, Serap Oguz
author_sort	Gonulal, Serap Oguz
title	Philippines Financial Sector Assessment Program : Insurance Sector - Targeted Assessment of ICPS and Development Issues
title_short	Philippines Financial Sector Assessment Program : Insurance Sector - Targeted Assessment of ICPS and Development Issues
title_full	Philippines Financial Sector Assessment Program : Insurance Sector - Targeted Assessment of ICPS and Development Issues
title_fullStr	Philippines Financial Sector Assessment Program : Insurance Sector - Targeted Assessment of ICPS and Development Issues
title_full_unstemmed	Philippines Financial Sector Assessment Program : Insurance Sector - Targeted Assessment of ICPS and Development Issues
title_sort	philippines financial sector assessment program : insurance sector - targeted assessment of icps and development issues
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/291931629267204212/Philippines-Financial-Sector-Assessment-Program-Insurance-Sector-Targeted-Assessment-of-ICPS-and-Development-Issues-Technical-Note http://hdl.handle.net/10986/36184
_version_	1764484678830522368

Philippines Financial Sector Assessment Program : Insurance Sector - Targeted Assessment of ICPS and Development Issues

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