The Asian Development Bank (ADB) has approved a $400 million policy-based loan to support the Philippines’ comprehensive Insurance Reform Program. This funding is strategically aimed at boosting the efficiency of the nation’s insurance industry, fostering greater public participation, and stimulating stronger, more inclusive economic growth.
The Insurance Reform Program, Subprogram 1, focuses on modernizing regulation and supervision within the financial sector. A critical component of this initiative is enhancing the intermediation of long-term capital for essential government infrastructure projects. The program is specifically designed to create a more efficient, consumer-oriented, and technologically advanced insurance market that strengthens climate risk management and 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.”
This new program, implemented in close partnership with the Insurance Commission, will be delivered through three sequenced subprograms. It supports comprehensive reforms that include:
Cutting-edge digitalization to streamline services and increase accessibility.
Climate finance measures to enhance resilience against increasing climate risks.
Initiatives to improve financial inclusion and bolster consumer trust in the sector.
This marks the ADB’s first dedicated insurance reform program, building upon decades of support for the Philippine insurance industry and capital markets development, including initiatives like the Inclusive Finance Development Program and the Support to Capital Market-Generated Infrastructure Financing Program. It also complements recent ADB efforts in related fields such as parametric and indemnity insurance, agriculture insurance, and health insurance.
