ADB OKs $400-M loan for PH insurance industry reform

The Asian Development Bank (ADB) on Tuesday said it has approved a $400 million policy-based loan to support reforms aimed at raising the efficiency of the Philippines’ insurance industry.

In a news release, the Manila-based multilateral lender said the policy loan under the Insurance Reform Program supports broader financial sector development reforms in regulation and supervision, including greater intermediation of long-term credit for government infrastructure projects.

The ADB said the insurance reform program will be implemented in three sequenced subprograms in close partnership with the Insurance Commission (IC).

The bank added that the program supports comprehensive reforms such as cutting-edge digitalization and climate finance to enhance resilience, financial inclusion, and consumer trust.

The ADB said this is its first dedicated insurance reform program and is designed to foster 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. 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,” said ADB country director for the Philippines Andrew Jeffries.

The lender said the insurance reform initiative builds on its ongoing support to the Philippine insurance industry and capital markets development since the late 1990s. 

Its past initiatives include the Inclusive Finance Development Program and the Support to Capital Market-Generated Infrastructure Financing Program, according to the bank.

The ADB added that the latest program also complements its recent support for related reforms, such as parametric and indemnity insurance under the Second Disaster Resilience Improvement Program, agriculture insurance under the Climate Change Action Program, and health insurance under the Build Universal Health Care Program. — JMA, GMA Integrated News