Beschreibung:
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