Insurance web aggregators now under IC
Websites or online platforms that provide price comparison for different insurance policies are now under the supervision of the Insurance Commission (IC), the agency said yesterday.
Insurance commissioner Dennis Funa issued the order under IC Circular 2018-51, dated Oct. 15, which prescribes the guidelines for the accreditation of web aggregators as insurance intermediaries.
An insurance web aggregator is an internet-based platform that collects and provides insurance policy quotations from various insurance companies based on predetermined set of needs specified by the prospective client and from which the prospective client can choose from.
Funa said the IC issued the regulations to supervise and monitor aggregators as insurance intermediaries who maintain websites providing price comparison and information on products of different insurers.
“In 2014, and in view of the gaining popularity of electronic commerce, the commission promulgated the Guidelines on Electronic Commerce of Insurance Products which is the uniform framework governing the online solicitation of insurance products by industry players. Thus, placing online selling of insurance products within the regulation and supervision of the Insurance Commission,” Funa said.
“Now, with the development and existence of web aggregators for insurance products, we see the need to require them to register with us and to put in place regulatory requirements aimed at protecting the insuring public,” he said.
Under the circular, web aggregators are now required to submit their respective business models or module of operation, as well as copies of their agreement with insurance providers.
The new rules also require both the insurance aggregator and the insurance companies to incorporate in their agreement several provisions mandated by the IC aimed at protecting the interest of the public.
To distinguish an insurance web aggregator from insurance companies, the IC prohibited aggregators from engaging in any business other than the objective of consolidating information on different insurance products from different companies.
The new regulation also prohibits an aggregator from engaging in acts similar to that of an insurance agency or broker.
The commission is requiring insurance web aggregators to display authentic product information, which should be based solely on information received from insurance companies.
“We recognize the increasing number of insurance comparison websites and the important role they play in boosting the online market for insurance products. Corollary to this, we likewise recognize the need to regulate this platform to ensure that both the insuring public and the insurance industry are protected,” Funa said.
To date, existing webbased insurance aggregators include MoneyMax. ph, eCompareMo.com, DirectLink, iChoose.ph, GoBear, MoneyMonster.ph, and Citinsure, among others.