Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, recently launched new regulations that set requirements for financial institutions that offer microinsurance. Specifically, the staff of any financial institution looking to act as an insurance agent must undergo training and pass a qualifying exam. The institution must subsequently receive authorization from the Philippines’ Insurance Commission.
Regarding the microinsurance sector, a BSP representative explains, “It is a highly regulated business as it impacts on the financial welfare of small borrowers whose trust and confidence in the system forms the bedrock of banking, especially in the countryside.” According to BSP, any unauthorized insurance-related activity will subject a bank as well as its directors and officers to severe sanctions and other possible penalties.
By Julie Moksim, Research Associate
About Bangko Sentral ng Pilipinas (BSP): Established in July 1993, Bangko Sentral ng Pilipinas (BSP) is the central bank of the Republic of the Philippines. BSP has three regional offices performing cash operations and cash administration and eighteen branch offices. BSP participates in advocacy programs concerning microfinance, financial education and consumer protection.
Sources and Additional Resources:
GMA News: “BSP: Not All Banks Can Issue Microinsurance”, March 28, 2011, http://www.gmanews.tv/story/216385/business/bsp-not-all-banks-can-issue-…
MicroCapital.org Brief, March 8, 2011: Eighty Cooperatives in the Philippines Express Interest in Purchasing Weather-Index Microinsurance Offered by Coop Life Insurance & Mutual Benefit Services (CLIMBS), Munich Re, GTZ Venture, https://www.microcapital.org/microcapital-brief-eighty-cooperatives-in-th…
MicroCapital.org Brief, March 1, 2011: Manulife Philippines to Offer Microinsurance Products to Low-Income Filipino Households, https://www.microcapital.org/microcapital-brief-manulife-philippines-to-o…
MicroCapital’s Microfinance Universe Profile: Bangko Sentral ng Pilipinas
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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