Purpose and Benefits of Using Mobile Applications in Insurance Distribution
- Enhances market penetration by reaching a wider audience.
- Promotes awareness of insurance products among the public.
- Improves efficiency in delivering insurance services.
- Provides an accessible alternative platform utilizing technological advancements.
Regulatory Authority and Amendment Scope
- The Insurance Commissioner exercises authority under Sections 50 and 437 of the Insurance Code as amended by Republic Act No. 10607.
- The amendment specifically revises Item 7.18 of IC Circular Letter No. 2014-47 concerning electronic commerce of insurance products.
Approval and Registration Requirements
- Use of mobile applications for insurance distribution requires prior approval from the Insurance Commission.
- Applications must be registered on major digital platforms such as Apple App Store, Google Play, and Microsoft Windows Marketplace.
- Mobile applications must meet the same regulatory requirements applicable to the insurance provider’s website.
Distribution and Access Limitations
- Mobile insurance applications can be pre-installed, SIM menu items, or downloadable through approved digital platforms.
- Accessibility of the mobile application is restricted to the Philippine territory.
- Only insurance products approved by the Commission are permitted for distribution via the mobile application.
Compliance with Existing Laws and Payment Mechanisms
- Products offered must comply with existing laws, regulations, and circulars issued by the Insurance Commission.
- Payment methods allowed include:
- Automatic deduction from the user’s prepaid load with the network carrier.
- Billing through postpaid plans.
- Deduction from electronic wallets.
- Use of credit or debit cards.
- Accredited online payment systems.
- All payment methods are subject to rules and regulations of the National Telecommunications Commission.
Effective Date
- The circular amendment takes effect immediately upon issuance.