The Philippines’ Insurance Commission (IC) has taken a significant step to safeguard consumers. On 21 October, it released Circular Letter No. 2024-21, which renders provisional insurance agents’ licenses ineffective. Insurance Commissioner Reynaldo A. Regalado emphasized that this action is a crucial part of enhancing consumer protection. By permitting only those with regular licenses to conduct business with the public, the IC aims to ensure that the agents operating in the market are fully compliant and qualified.
The commissioner further elaborated that the streamlined procedures of the Ease of Doing Business Act (Republic Act No. 11032) and associated regulations have made provisional licenses obsolete. Now, agents’ licenses can be processed within a mere seven working days. This efficiency gain means that there is no longer a need for provisional arrangements. The circular also serves as a reminder to insurers. They must submit complete documentation and pay the requisite fees when applying for agents’ licenses. It also strictly prohibits any individual from acting as an insurance agent without a proper license. Penalties are in place, as per CL No. 2014-15, for commissions paid to unlicensed agents.
In light of these changes, Commissioner Regalado has urged the public to be vigilant. He encourages them to only engage with licensed agents and to report any unauthorized persons attempting to conduct insurance transactions. This move by the Insurance Commission is expected to have a far-reaching impact on the insurance industry in the Philippines, promoting a more secure and regulated environment for both consumers and legitimate agents alike.
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