Insurance companies may now use mobile applications to distribute their products, provided that the use of the app has been approved by the Insurance Commission (IC).
Insurance Commissioner Dennis Funa signed a directive, providing for an enhanced framework on the use of mobile phones as a distribution channel for insurance products, reported The Philippine Star.
The IC said this supplements the guidelines on the electronic commerce of insurance products issued by the regulator in 2014, one which provides the framework on the distribution of insurance products through the Internet.
The regulator said the mobile applications could either be pre-installed in a mobile device, an item in the subscriber identification module (SIM) menu of a mobile network carrier, or those downloadable via major digital platforms, such as Apple Store, Google Play and Microsoft Windows Marketplace.
Mr Funa said the new regulation also provides for a flexible mode of payment for policyholders, in addition to the usual electronic payment modes through credit and debit cards.
He said the IC, through the new framework, addresses the emerging trend of distributing insurance products through alternative channels.
“This will allow insurance providers to collaborate with telecommunications and mobile companies and to develop and introduce new and innovative integrated customer experiences to the insuring public with the use of a mobile phone alone,” he said.
Insurance companies may introduce new features such as access to the features of different insurance products, payment breakdown and filing of insurance claims using a mobile phone, thus, allowing widespread availability of insurance products in a more convenient manner while improving customer satisfaction, he said.