IC now requires public registry of insurance agents

The government has mandated insurance firms to establish a public registry of their sellers and agents in a bid to boost consumer protection on various financial products.

In a circular letter, the Insurance Commission (IC) is requiring all companies authorized to sell life insurance products to set up a publication registry of licensed insurance agents.

IC commissioner Reynaldo Regalado said this is part of the government’s moves to ensure that appropriate mechanisms are in place to protect the interest of consumers of financial products and services.

“This is also to institutionalize consumer protection as an integral component of corporate governance and risk management of financial service providers,” Regalado said.

Under the Insurance Code, no person can act as an insurance agent unless duly licensed by the IC.

The IC noted the importance of providing the public with the necessary information about the people they are dealing with especially in terms of insurance products.

As such, insurance companies will be required to establish and maintain a registry of their respective insurance agents duly licensed through the Enhanced Licensing System of the IC.

The registry, which shall be updated on a monthly basis, will give the public access to information about the sellers such as complete name, license number and type and validity of license, among others.

According to the IC, every insurance firm must provide a consumer hotline for responding to requests for verification of the status of insurance agents included in the registry.

Further, the IC will have the authority to impose enforcement actions for failure to comply with the mandatory registry.

The IC can impose penalties or fines for non-compliance with the mandatory posting, incomplete posting and incorrect data, as well as suspend licenses to engage in businesses.

The IC is giving insurance firms up to three months to establish and publish the registry of licensed insurance agents.