THE ASIAN Development Bank (ADB) said it approved a $400-million loan to the Philippines to help it raise the efficiency of its insurance industry.
“By modernizing the regulatory framework, we are not only strengthening the insurance industry itself — we are building a critical line of protection for the nation, mobilizing long-term capital for development, and ensuring that the benefits of economic growth reach every Filipino entrepreneur and household,” ADB Country Director for the Philippines Andrew Jeffries said in a statement on Tuesday.
The loan aims to support reforms that will create an enabling environment for broader participation in the insurance sector, thereby making the market more efficient, consumer-oriented, and technologically advanced while strengthening climate risk management and disaster resilience.
“The Insurance Reform Program, Subprogram 1 supports broader financial sector development reforms in regulation and supervision, including greater intermediation of long-term credit for government infrastructure projects,” it said.
The program will be implemented in three sequenced subprograms and support comprehensive reforms aimed at enhancing resilience, financial inclusion, and consumer trust.
The ADB’s partner in the program is the Insurance Commission (IC).
Total premiums paid for life and nonlife insurance products grew 12.98% year on year to P242.842 billion by the end of June, the IC reported.
Insurance penetration, or the ratio of insurance premiums to gross domestic product, rose to 1.79% from 1.71% a year earlier. — Aaron Michael C. Sy