An independent policy paper by a top law firm commissioned by life insurer Pru Life UK calls for the government to review regulations on selling insurance policies to overseas Filipino workers while they are abroad to help them achieve financial security.
The paper, which looks into the current regulations on the cross-border selling of insurance products and offers recommendations on specific measures that would allow OFWs adequate access to different financial products and services while they are abroad, is in line with the company's commitment to driving up financial inclusion among Filipinos.
Authored by leading law firm Quisumbing Torres, an affiliate of Baker McKenzie, the paper entitled "Improving Access of Overseas Filipino Workers to Life Insurance" also discusses the need to revisit and update these regulations, given recent developments relating to migrant workers programs and financial inclusion plans.
"Our ESG framework remains pragmatic and faithful to our purpose of helping people get the most out of life and further drive up financial inclusion in the country. The current working arrangements of OFWs make them particularly vulnerable to life's uncertainties. Our intentional goal is to help them prepare for a secure and stable future," Pru Life UK president and chief executive officer Eng Teng Wong shared.
The paper identifies key challenges surrounding access to life insurance that need to be addressed for the benefit of OFWs:
• Current regulations require OFWs to be physically in the Philippines to complete a purchase of life protection products from local-based companies. These options are not practical and may not fully cater to the needs of OFWs.
• Life insurance policies typically mature at the age of retirement, and OFWs retire in the Philippines after long periods of working overseas. It is ideal and practical for them to procure life insurance from a Philippine insurer, making it easier to claim payouts without dealing with a foreign entity.
• OFWs only have a limited time to acquire life insurance while in the country, which prevents them from availing of such products at an earlier age for lower premiums. Due to current regulatory restrictions, their sector remains at risk of being unserved and unprotected by insurance companies.
