Rules on Bancassurance Under Amended Insurance Code

Bancassurance can only be conducted in banks approved by the BSP Monetary Board.
Insurance companies must obtain board approval for bancassurance activities and have Insurance Commissioner approval for insurance products used.
Bank employees may only refer clients unless specifically trained and certified to present insurance products preliminarily.
Certified bank employees are exempt from needing insurance agent licenses unless the Commissioner requires it.
Bank employees may assess financial needs, make preliminary presentations, and provide general product information but cannot finalize contracts.
Insurance agents and bank employees must be identified distinctly.
Insurance sales areas in banks must be separate from where bank products are sold.

Agreements must be submitted and approved by the Insurance Commission.
Amendments to agreements also require prior approval.
Agreements must include compliance with Insurance Commission requirements, complaint mechanisms, and clearly marked areas for bancassurance activities.
Sensitive commercial provisions may be omitted for confidentiality but must be disclosed to the Insurance Commission.
Board of Directors’ approval is required for bancassurance activities and agreements.
Both parties must establish grievance mechanisms for complaint resolution.
The Insurance Commission has jurisdiction over claims related to bancassurance policies.

Promotional materials must be accurate, made in good faith, and free from misrepresentation.
Bancassurance activities must be conducted honestly, respecting client rights to choose products or refuse offerings.
Insurance product presentations require client consent and must be conducted by licensed representatives.
Bank employees without certification may only refer clients.
Products must have prior Insurance Commissioner approval.
Representatives must inform clients that insurance products are not bank products, guarantees, or insured by PDIC.
Product presentations must consider client financial objectives and conditions, prioritizing client interests.
Violations of rules may lead to suspensions and fines after due process.
Suspension of bancassurance activities may be ordered pending compliance.
Valid bancassurance agreements remain binding unless conflicting with new regulations.

Clients must receive a Product Highlight Sheet outlining key product information, risks, fees, valuations, exit options, and contacts.
A Client Suitability Assessment must be done to evaluate client risk tolerance and capacity.
An Investment Policy Statement must be generated reflecting client investment philosophy and fund allocation.
Insurance companies must disclose any material conflicts of interest.
Promotional materials and policies must include a standard disclosure that the product is not a deposit, earnings are not guaranteed, and principal is at risk.

Insurance companies, alone or with banks, are responsible for complaint resolution.
A consumer protection framework must be established including processes for complaints and after-sale claims.
Claims and complaint procedures must comply with relevant laws and Insurance Commission issuances.

Insurance companies must submit an annual summary report by April 30 covering bancassurance activities.
Reports must include bank addresses, personnel involved, complaints and claims, complainants’ names, and actions taken.
Additional regulatory submissions may be required by the Insurance Commission.

This circular does not amend provisions allowing rural, cooperative, or thrift banks to sell microinsurance products under separate BSP regulations.

The circular takes effect immediately and all existing bancassurance agreements must comply with its provisions.
All concerned parties are instructed to adhere to these rules accordingly.