The Asian Development Bank (ADB) has approved a USD400 million policy-based loan to overhaul the Philippines’ insurance sector, with the goal of improving efficiency, encouraging broader participation, and fueling stronger economic growth.
Under the Insurance Reform Program, Subprogram 1, the loan will support wide-ranging reforms in regulation and supervision, aimed at deepening financial markets and expanding long-term credit for infrastructure development. The initiative targets a more consumer-focused, technologically advanced insurance market—one that can also better manage climate risks and enhance disaster resilience.
“This program is a strategic investment in the Philippines’ sustainable and inclusive economic future,” said ADB Country Director for the Philippines Andrew Jeffries. “By modernizing the regulatory framework, we are not only strengthening the insurance industry itself—we are building a critical line of protection for the nation, mobilizing long-term capital for development, and ensuring that the benefits of economic growth reach every Filipino entrepreneur and household.”
The program will be rolled out in three sequenced subprograms, in close coordination with the Insurance Commission. It includes digitalization initiatives, climate finance tools, and reforms that seek to boost resilience, financial inclusion, and consumer confidence.
This marks ADB’s first dedicated insurance reform effort in the Philippines, building on its long-standing support for capital market and financial sector development. It also complements broader reforms ADB has helped drive in disaster, agriculture, and health insurance.
The move underscores efforts to modernize a lagging sector and mobilize long-term funds for development, while broadening financial safety nets for Filipinos.
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