The Asian Development Bank (ADB) has approved a $400-million loan to support reforms aimed at improving the efficiency of the insurance industry in the Philippines.
In a statement yesterday, ADB said the policy-based loan for the Insurance Reform Program, Subprogram 1 is intended to support reforms in regulation and supervision and to help strengthen the role of institutions in providing long-term credit for government infrastructure projects.
The new program will be implemented in three sequenced subprograms and in partnership with the Insurance Commission.
It will involve reforms including digitalization and climate finance to enhance resilience, as well as promote financial inclusion and consumer trust.
Through the loan, the aim is to have a more efficient, consumer-oriented and technologically advanced insurance market.
In addition, the loan is expected to help strengthen climate risk management and disaster resilience.
‘This program is a strategic investment in the Philippines’ sustainable and inclusive economic future,’ ADB country director for the Philippines Andrew Jeffries said.
‘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,’ Jeffries said.
The loan is ADB’s first dedicated insurance reform program in the Philippines.
The multilateral lender has been providing support for the Philippine insurance industry and capital markets development through past initiatives including the Inclusive Finance Development Program and the Support to Capital Market-Generated Infrastructure Financing Program.
ADB is also providing support for related reforms such as parametric and indemnity insurance through the Second Disaster Resilience Improvement Program, agriculture insurance through the Climate Change Action Program and health insurance under the Build Universal Health Care Program.
Guided by the country partnership strategy for 2024 to 2029, ADB is providing support to the Philippines to enable the country to achieve greater inclusion, climate resilience and sustainable economic growth.