The Philippine life insurance sector is the second most liberal in terms of regulation in the Association of Southeast Asian Nations (Asean), allowing for more exposure to foreign participation, the Department of Finance (DOF) said.
The DOF cited a report from actuarial products and services provider Milliman, which gave the Philippines an overall score of 58 out of a highest possible score of 100. Singapore topped the list with 70 points.
An economy with a high score signifies a perfectly liberal market while a low score indicates a more tightly-controlled industry, with typically less exposure to foreign participation, the DOF said.
The report also showed the Philippines had the following scores and ranking in Asean: score of 72 and ranked 2nd in product development; score of 52 and ranked 3rd in distribution; score of 60 and ranked 3rd in investment; score of 33 and ranked 4th in sophistication of capital regime; score of 100 and ranked 1st in foreign ownership; score of 70 and ranked 3rd in new licenses; and score of 73 and ranked 1st in talent mobility.
The Philippines got a zero and ranked eighth in policy protection.
The actuarial provider came up with a so-called Milliman Asean Liberalization Index (Mali), which measured product development, distribution, investment, sophistication of capital regime, policyholder protection, foreign ownership, new licenses, and talent mobility.
The DOF said the index showed the development stages of the insurance markets in each of the Asean countries.
Finance Secretary Cesar V. Purisima said, This affirms that our rapidly growing sectors are underpinned by sound regulatory regimes and enabling environments.
This is a clear indication that our life insurance industry regulatory regime is robust and that the industry is very much capable to go head to head with other life industries in Asean. We are better prepared than most of our neighbors and ready to face the challenges of the approaching [integration], Insurance Commissioner Emmanuel F. Dooc added.