ADB bats for stronger IC

The Insurance Commission needs to strengthen its regulatory power to ensure the protection of insurance policy holders, a ranking official from the Asian Development Bank (ADB) said.

The IC, the regulator of insurance companies in the country, pales in comparison to the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission, said Jaseem Ahmed, director for governance, finance and trade division of ADB’s Southeast Asia Department.

“The IC has shown improvements but what we would like to see is for it to become a much stronger institution,” Ahmed told reporters.

He said he supports proposals to amend the charter of the commission, saying this is necessary to give the institution more powers.

“There should be amendments to its charter. Its single biggest weakness is that it lacks protection for its regulators. It lacks protection from prosecution,” Ahmed said.

The International Monetary Fund (IMF) has also recommended strengthening the different regulatory agencies in the country such as the BSP, Philippine Deposit Insurance Corp. and the IC.

The BSP and PDIC, the IMF said, also needs protection from prosecution usually pursued by the entities they regulate.

Various bills seeking to amend the charter of the BSP have been filed in Congress but have not hurdled deliberations.

The ADB, for its part, said it would continue to support efforts that would strengthen the IC.

The ADB and the Japanese government have extended a $1-million loan to the Philippines to help the IC.

Ahmed said the grant would be used by the commission to develop its regulatory needs, train its regulators and improve the education of the intended beneficiaries.

The Department of Finance (DOF), for its part, also supports efforts to strengthen the commission as an institution.