MANILA, Philippines — Insurance complaints rose by nearly eight percent to 5,400 last year, largely coming from mutual benefit associations (MBA) and health maintenance organizations (HMO).
Latest data from the Insurance Commission (IC) showed that complaints from the insuring public reached 5,417 last year, up by 7.8 percent from 5,025 in 2022.
Nonetheless, the IC said it managed to resolve all complaints received as mandated by the Financial Products and Services Consumer Protection Act.
These were done through amicable settlement between the complainants and the corresponding IC regulated entities, or through endorsement of the complaints for formal adjudication.
Among the sectors, the biggest increase in complaints was from MBA, nearly tripling to 64 from 23. This was followed by HMO complaints, which jumped by 34 percent to 313 from 234 in 2022.
Other complaints referred through hotline 8888 or the Citizens’ Complaint Center covered the largest number of complaints at 3,452, up by 20 percent.
All other sectors such as life, non-life, and pre-need companies registered lower complaints by 14 percent, 12 percent, and 47 percent, respectively.
IC Commissioner Reynaldo Regalado said the efficient and prompt resolution of complaints would build the trust among the insuring public that products will benefit them during unfortunate events.
“The insuring public should be aware that valid insurance claims are paid out promptly, and disputed claims are resolved expeditiously, either through the mandated complaints resolution channels of insurance companies, our claims mediation process, or through case adjudication,” Regalado said.
IC data also showed that there was a 30.77-percent increase in the number of disputed insurance claims decided upon through adjudication in 2023.
A total of 51 formal adjudication cases involving disputes on insurance claims were decided upon in 2023, compared to 39 cases in 2022. Under the law, the IC has jurisdiction over disputed insurance claims up to a maximum P5 million.