BusinessWorld
Finance
Posted on September 21, 2011 09:59:40 PM
TACLOBAN CITY -- The Insurance Commission (IC) wants the registration of unlicensed insurance providers completed by the end of this year as part of efforts to convince poor households to avail of microinsurance.
Ma. Lourdes L. Ramos of the IC’s public assistance information division said the regulator has been stepping up the enforcement of the joint memorandum circular issued by the IC, Cooperative Development Authority (CDA) and Securities and Exchange Commission (SEC), that sets the government’s policy on informal insurance activities.
“Unlicensed insurance activities are usually done by cooperatives.
These are the groups that think it’s okay to do that. We want them to be formalized, place them on the mainstream and regulate their activities,” Ms. Ramos said in an interview during the three-day financial literacy roadshow on microinsurance in this city.
Under the joint IC-CDA-SEC Memorandum Circular 1-2010 issued January 29, 2010, all entities engaged in insurance activities are required to secure a certificate of authority from IC.
Informal insurance schemes should have closed by January, while those that want to formalize and continue to engage in the insurance business have up to this year to secure a certificate of authority.
“We want to protect the interest of members [of these informal insurance schemes] by regulating their activities. That way, clients are assured that they will get what’s due them,” Ms. Ramos said.
Joselito S. Almario, Department of Finance-National Credit Council (DOF-NCC) deputy executive director, said 2.9 million Filipinos are covered by informal insurance schemes not certified by the regulator.
“Formalizing these unlicensed insurance providers will help people appreciate the importance of securing insurance and assure their benefits,” Ms. Almario said -- S. Q. Meniano
No comments:
Post a Comment