Insurers told to speed up quake claims – BusinessWorld Online
THE Insurance Commission (IC) has ordered insurers, mutual benefit associations, health maintenance organizations and pre-need companies to accelerate the processing of claims from victims of the 6.9-magnitude earthquake in Cebu and Typhoon Opong.
The move came after the Department of Finance ordered agencies under its to extend immediate relief to communities struck by the disasters. Finance Secretary Ralph G. Recto said the rollout of assistance and services needed to be faster to ease the burden on affected families.
In a circular issued on Oct. 2, the IC instructed companies under its jurisdiction to prioritize prompt payment of valid claims, extend deadlines for filing requirements and relax standard procedures that could delay processing.
The regulator also told firms to improve customer service to help policyholders navigate the claim system.
The commission stressed that assessments of damage must be properly documented and recorded. It added that insurers and related entities should coordinate with local government units and national agencies engaged in relief and rehabilitation to ensure that assistance is accessible.
“The commission will closely monitor compliance… and may require periodic reports on the status of disaster-related claims,” it said in a statement. “Further, this commission shall provide immediate action to complaints or issues that may be escalated to it for resolution.”
The directive comes as authorities in Cebu and neighboring provinces continue to assess the scale of destruction from the quake and typhoon, which left thousands displaced and caused heavy damage to homes, businesses and infrastructure. Initial government estimates point to billions of pesos in losses.
The Philippines is among the most disaster-prone countries in the world, with an average of 20 typhoons annually alongside frequent earthquakes and volcanic eruptions.
Mobilizing insurance payouts quickly is critical not only to provide financial relief but also to stabilize the broader economy by supporting household recovery and small businesses. — Aaron Michael C. Sy
