KYC and CDD Guidelines for Insurance Firms

First-time clients must present an original and submit a copy of at least one valid, highly credible photo-bearing ID issued by official authority.
Examples of highly credible IDs include passports, driver’s licenses, PRC ID, police clearance, voter’s ID, senior citizen’s card, government IDs, and others as listed.
Substitute IDs such as birth certificates or private company IDs allowed if no credible photo ID is available initially, but must be replaced by a credible photo ID during policy duration.
Significant transactions require updated customer records, while policies with no significant transactions need record updates every two years.
If photocopying is unavailable, the agent must certify witnessing the original ID and ensure subsequent photocopies are submitted.
Compliance with minimum KYC information as per Revised IRR Rule 9.1.c is mandatory; insurers may require multiple IDs to meet requirements.

No face-to-face meeting required for telemarketing, SMS, direct mail, or broadcasting sales.
Insurance premiums must be minimal: annual premium not exceeding Php 50,000 or single premium not over Php 125,000.

Group policies: Employers/entities holding the policy are corporate clients required to submit KYC/CDD documents; individual members’ details submitted via certified list.
Salary allotment/worksite marketing: Employer considered corporate client; provides KYC documents; existence of employer-employee relationship confirms identity and income legitimacy.
Personal accident, health, credit life, term policies without savings component: Application info used for underwriting and policy maintenance suffices for KYC/CDD; duplicate verification not required.

Insurance sales through banks are exempted from separate KYC as bank customers already undergo KYC/CDD.
Waiver of KYC requirements upon notarized Bancassurance Agreement with warranty clause or sworn certification by the partner bank confirming KYC compliance.

KYC responsibilities primarily rest with insurance brokers who are covered entities under AMLA.
Brokers must issue sworn KYC-compliant certification for accounts handled.
Insurance companies retain their own KYC responsibilities despite broker’s certification.

Reduced KYC requirements for microinsurance where daily premium does not exceed 10% of daily minimum wage and coverage is less than 500 times the daily minimum wage.
Simplified filing of application with minimum client information is sufficient.
Applies to non-life minor line products with similar premium and coverage limits.

Insurance companies relieved from reporting non-cash transactions (e.g., claims settlement via checks) to prevent redundant reporting as banks report these transactions.
Insurance companies must still report suspicious transactions and comply with KYC/CDD and record-keeping obligations.
Insurers must establish reliance levels for third parties (banks, employers, brokers) in applying these guidelines.

Circular takes effect immediately from August 7, 2007.
Supersedes all inconsistent Insurance Commission circulars, rules, and regulations.
Emphasizes guidance for IC-covered institutions to ensure compliance and efficient implementation of KYC/CDD requirements without impeding business operations.