Question & AnswerQ&A (CIRCULAR LETTER NO. 2018-07)
The amendment aims to set guidelines for the use of mobile insurance applications for the distribution of insurance products to improve market penetration, promote product awareness, improve delivery efficiency, and provide an alternative accessible platform using technology.
The Insurance Commissioner has the authority to amend the guidelines pursuant to Sections 50 and 437 of the Insurance Code, as amended by Republic Act No. 10607.
A mobile insurance application is a type of mobile app that may be preinstalled on a mobile device, accessible via the SIM menu of a network carrier, or downloaded by the user through recognized digital platforms such as Apple App Store, Google Play, or Microsoft Windows Marketplace.
Yes, the use of the mobile application for distributing insurance products requires prior approval from the Insurance Commission.
The mobile app should be registered with major digital platforms like Apple App Store, Google Play, and Microsoft Windows Marketplace, and must comply with the guidelines applicable to the insurance provider’s website.
No, the mobile insurance application shall only be accessible and used within the Philippine territory.
Only approved insurance products that comply with existing laws, rules, regulations, and circulars released by the Insurance Commission may be distributed through the mobile insurance application.
Payments may be made through automatic deduction from the user’s existing load to the network carrier, billing through postpaid plans, deductions from electronic wallets, use of credit or debit cards, or any accredited online payment system, subject to National Telecommunications Commission rules.
This Circular takes effect immediately upon issuance, which was filed on January 29, 2018.
Compliance is ensured by requiring prior approval and registration of the mobile app, restricting distribution to approved products, mandating adherence to existing laws and regulations, and allowing only authorized payment mechanisms.