Defining Government's Policy on Informal Insurance Activities

January 29, 2010JOINT IC-CDA-SEC MEMORANDUM CIRCULAR NO. 01-10SUBJECT : Defining Government's Policy on Informal Insurance ActivitiesWHEREAS, under the Insurance Code of the Philippines, entities that will undertake or are undertaking insurance activities are required to secure a Certificate of Authority from the Insurance Commission before these entities can transact an insurance business;WHEREAS, under Chapter XIII of the Cooperative Code of 2008, cooperatives registered with the Cooperative Development Authority that are undertaking or will undertake insurance activities are required to comply with the provisions of the Insurance Code, including the requirement of securing a Certificate of Authority from the Insurance Commission; WHEREAS, there are private entities including non-profit organizations registered with the Securities and Exchange Commission and other entities providing insurance products and/or undertaking informal risk protection schemes to their clients/members without the required Certificate of Authority from the Insurance Commission;WHEREAS, the members/clients of these institutions engaged in self-insurance or informal insurance schemes without the requisite Certificate of Authority from the Insurance Commission are exposed to certain risks;WHEREAS, it is of utmost importance to protect the...