Insurers given guidelines on outsourcing by Philippines regulator
The Insurance Commission of the Philippines has released a circular that provides new guidelines and definitions on outsourcing the business activities and processes of insurance companies. According to the guidelines, insurance companies are responsible to their policyholders for any of their outsourced activities, and for ensuring that the outsourced activities are conducted in a safe and effective manner. The guidelines also warn that business process outsourcing providers hired by insurers are not allowed to conduct solicitation activities or perform loss adjustment. They are also prohibited from deciding on whether to underwrite risks, or approve insurance or reinsurance claims. Both insurance companies and BPO firms are also mandated to observe and comply with data privacy laws in the collection, holding, processing, and use of clients’ personal information.