THE Insurance Commission (IC) has issued a circular letter enumerating the rules in line with licensing for insurance Web aggregators, adding that the issuance will enable the commission to supervise and monitor the sector.
Under Circular Letter 2018-51 issued on Monday, an insurance Web aggregator is an Internet-based platform that accumulates and provides insurance-policy quotations from various insurance companies based on a predetermined set of needs specified by the prospective client from which it can choose from.
Insurance Commissioner Dennis B. Funa said the new rules on insurance Web aggregators will now place them under the regulation of the IC.
“And now, with the development and existence of Web aggregators for insurance products, we saw the need to require them to register with us and to put in place regulatory requirements aimed at protecting the insuring public,” Funa said.
The IC pointed out that the objective of the regulation is to supervise and monitor an aggregator as an insurance intermediary that maintains a web site for providing insurance prospects for price comparison and information of products of different insurers and other related matters.
The circular letter requires applicants to submit their respective business model and system framework or module of operation and copies of their agreement with insurance providers, among others.
“In 2014, and in view of the gaining popularity of electronic commerce [e-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 IC,” he added.
The new rules require both the insurance aggregator and the insurance company to incorporate in their agreement several provisions mandated by the IC aimed at protecting the interest of the public.
In order to clearly identify and distinguish an insurance Web aggregator, the IC prohibits an aggregator from engaging in any business other than the objective of Web-based aggregation. The new regulation, likewise, prohibits an insurance aggregator from engaging in acts similar to that of an insurance agent or insurance broker.
Insurance Web aggregators can only display authentic product information, which shall be based solely on information received from insurance companies.
In addition, insurance aggregators can only use factual and unbiased data in its web site and are required to ensure that the information displayed are up to date and reflect the true features of the products. “We recognize the increasing number of insurance comparison web sites 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,” he said.
At present, existing Web-based insurance aggregators include: MoneyMax.ph; eCompareMo.com; DirectLink; iChoose.ph; GoBear; MoneyMonster.ph; and Citinsure, among others.