The Asian Development Bank (ADB) said Tuesday it approved a $400-million policy-based loan to support reforms to raise the efficiency of the Philippine insurance industry.
The loan, known as the Insurance Reform Program, Subprogram 1, is designed to foster a more efficient, consumer-oriented and technologically advanced insurance market, which will help stimulate stronger economic growth and strengthen climate risk management and disaster resilience, the ADB said.
It said the program supports broader financial sector development reforms in regulation and supervision, including greater intermediation of long-term credit for government infrastructure projects.
The loan will be implemented in three sequenced subprograms in close partnership with the Insurance Commission, supporting comprehensive reforms that include digitalization and climate finance to enhance resilience, financial inclusion and consumer trust.
“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,” said Jeffries.
This marks the ADB’s first dedicated insurance reform program, building on the bank’s support to the Philippine insurance industry and capital markets development since the late 1990s.
The new program complements recent ADB support for related reforms, such as parametric and indemnity insurance, agriculture insurance and health insurance.
