IC Institutionalized Remote Selling of Life Insurance Permanent

IC remote selling

Insurance Commission (IC) has institutionalized remote selling of life and non-life insurance. Previously, it was only temporarily allowed to sell insurance products remotely due to the COVID-19 pandemic.

Insurance Commissioner Dennis Funa in his circular letter last November 26, 2020, said that the commission recognizes the need and benefits derived from remote selling. IC recognizes the policy of the government to increase insurance penetration in the country during this crisis.

READ: Top 10 Life Insurance Companies in the Philippines 2020

What is Remote Selling?

Remote selling of life insurance is a collective term for selling existing insurance products using information and communication technologies. It includes teleconferencing, video conferencing, computer conferencing, audio conferencing, or other remote communication technologies.

What are the benefits?

This improvement from IC will benefit the commission, insurance companies, and especially the clients. So here are the few benefits of remote selling.

  • It will significantly expand the territorial reach of financial advisors. Thus, increasing their sales capacity.
  • It promotes cost efficiency as meetings can be done online.
  • Most importantly, it will save so much time considering that travel time will be removed from the equation.

READ: Sun Maxilink Prime |The Best-Selling VUL Plan From Sun Life

What are the limitations?

While remote selling is now considered a permanent way of selling insurance products, we still have few things to observe.

Premium limits for telemarketing

Selling life insurance products via SMS and direct marketing through email and publication by print, radio, or television will not require face to face meeting with the client. However, the premium payable should not exceed Php50,000 or Php 125,000 for a single premium.

No cross-border selling

While remote selling is allowed and increased advisors’ territorial reach, cross-border selling is still not allowed. It means that insurance plans should only be sold within the Philippines.

Anti-money laundering

Insurers and their sales personnel must observe anti-money laundering requirements.

Quality of Sales Process

The insurers must ensure that sales proposals and illustrations are thoroughly presented, explained, and discussed to the prospective client’s satisfactory understanding.

This circular letter takes effect immediately.

READ: How to Get Life Insurance Plan via Online

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2 comments… add one
  • Pow Link Reply

    Hi Sir Federico, how about selling to clients outside borders but has access to nearby PH embassy? Is that possible?

    • Hi Pow. Cross-border selling is not allowed even with the institutionalization of online selling. Thanks 🙂

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