Skip to main content
Categories
News
Back to News
News | 2020

A2ii Newsflash| The Philippines Issues InsurTech Regulatory Sandbox Guidelines

On 14 June 2020, the Insurance Commission of the Department of Finance of the Republic of the Philippines issued a Circular Letter on the adoption of a regulatory sandbox framework for InsurTech, recognising that the further development of these technological innovations has the potential to provide a considerable benefit to consumers and the public. These guidelines apply to all life and non-life insurance companies, mutual benefit associations, and licensed insurance intermediaries or aggregators by the Insurance Commission.

The Commission defined a regulatory sandbox as “a controlled environment with a system set up by a licensed insurance provider in collaboration with another person, natural or juridical, licensed or not by this Commission, that allows a small scale and live testing of technical innovations operating under special circumstance/s, allowance/s, and/or other limited and time-bound supervision”.

Non-regulated entities must first ensure compliance with the existing regulations of the Commission before applying. Prospective participants shall submit a formal proposal, together with an outline of the business model and a sandbox exit plan, which must include a methodology for the innovation to scale-up to a larger market, a plan for their clients in case of discontinuation, and an amount earmarked for payment of claims occurring from the implementation or adoption of the proposed innovation.

If accepted, they must report their progress monthly to the commission and a completion report. The experimental cycle is intended to last for a maximum of one year, with the possibility of a justified extension not exceeding six months.

We believe that the development of this regulatory sandbox framework is a pioneering moment for Philippine insurance regulation. It provides for an opportunity for Philippine InsurTech to develop at a pace similar to its regional and global counterparts. Moreover, it also allows for Philippine insurance companies, as well as mutual benefit associations, to safely test InsurTech solutions to various challenges in the conduct of their businesses while simultaneously ensuring the protection of the greater insuring public.

Philippine Insurance Commissioner Dennis Funa

Today, more than 30 countries have operational sandboxes. In the Asia Pacific region, these include Australia, Hong Kong, India, Indonesia, Japan, Kazakhstan, Malaysia, Pakistan, the Philippines’ existing FinTech sandbox, Singapore, Taiwan and Thailand. Among the most recent launches in 2019 were India and Pakistan. In South America, Argentina also recently established an InsurTech Innovation Hub.

Also in News

05.11.2020

A2ii Newsflash | Madagascar: the new Insurance Law for a healthy and inclusive financial services sector

more
26.10.2020

New times. Improved format. Continued commitment.

more
24.09.2020

A2ii Newsflash| Costa Rica Approves Inclusive Insurance Regulations

more
01.09.2020

A2ii Newsflash| National Bank of Ethiopia issues a Directive on Licensing and Supervision of Microinsurance Business

more
27.08.2020

Inclusive Insurance Training for Asian supervisors - last places are available

more
18.08.2020

A2ii scholarship for the ILO Insurance for Development course for supervisors available

more
21.07.2020

A2ii Newsflash| SUSEP Implements a Regulatory Sandbox Model in Brazil

more
30.03.2020

Covid-19 Insurance Supervisory Response Tracker

more
05.02.2020

An opportunity to provide your feedback: The IAIS Emerging Markets and Developing Economies Survey for all IAIS EMDE Members

more
21.01.2020

A2ii Newsflash| The SEC Pakistan Issues Regulatory Sandbox Guidelines

more
Microinsurance Master programme
29.11.2019

A2ii Scholarship for the Microinsurance Master accelerator programme for insurance supervisors

more
12.11.2019

ICP Self-Assessment Tool Launch

more
30.10.2019

Leadership and Diversity Program for Regulators: scholarship opportunity by A2ii and InsuResilience Global Partnership Secretariat

more
15.10.2019

A2ii Newsflash| The SSN Argentina launch their InsurTech Innovation Hub

more
02.10.2019

A2ii Newsflash| Kenya defines micro-insurance and index-based insurance in its primary legislation on insurance services

more
09.09.2019

Deadline for applications extended: The 2nd Inclusive Insurance Innovation Lab

more
04.09.2019

The A2ii releases its decennium publication: 'A2ii: 10 Years On'

more
21.08.2019

Celebrating 10 years of A2ii - #A2ii10

more
20.08.2019

The 2nd Inclusive Insurance Innovation Lab Call for Applications

more
12.07.2019

Watch the recording of the 16th Consultative Forum on Climate and Disaster Risk here!

more
07.05.2019

LIVE STREAMING: 15th Consultative Forum on Inclusive Insurance - Climate and disaster risk: building resilience, bridging the protection gap

more
12.04.2019

RegTech and SupTech: Implications for Supervision – A2ii-IAIS Consultation Call, March 2019

more
09.11.2017

Holistic approach to insurance is key to seeking solutions for smallholder farmers faced with natural disasters

more
06.11.2017

Insurance regulators and providers meet in Peru to seek solutions for smallholder farmers faced with natural disasters

more
01.11.2017

Global Agreement to Enhance Actuarial Skills

more
31.05.2017

Press release: Stakeholders come together to explore agricultural index based insurance as a tool for building resilience of farmers in Africa

more
31.05.2017

Stakeholders come together to explore agricultural index based insurance as a tool for building resilience of farmers in Africa - 10th consultative forum

more
23.02.2017

Insurance supervisors gather for the first Mobile Insurance Conference

more
06.07.2016

Press Release: Access to Insurance Initiative Governing Board announced

more
11.07.2015

A2ii Newsflash | October 2015: Uganda proposes new microinsurance regulation with reduced minimum capital requirement for microinsurers

more
11.07.2015

A2ii Newsflash | July 2015: India adopts a new IRDA microinsurance regulation

more
06.07.2015

Save the date: IAIS-A2ii Consultation Call on "Risk-based Supervision in Inclusive Insurance "

more
28.10.2014

Reminder: Invitation to the 8th IAIS-A2ii Consultation Call on "Formalisation"

more
06.06.2014

Press Release: Policy Seminar and Consultative Forum Kigali

more
05.06.2014

Press Release Policy Seminar and Consultative Forum Kigali

more
12.07.2013

Responsible Finance Forum IV – Consumer Protection in Emerging Insurance Markets

more
11.07.2013

A2ii and IAIS Announce SAPR launch

more
07.11.2012

Press Release: Policy Seminar Tanzania on Access to Insurance

more
09.11.2011

Press Release: Policy Seminar Rio

more
11.07.2009

IAIS Press Release: Insurance Supervisors strengthen framework for sound insurance markets

more