The document outlines BSP Circular No. 683 which allows rural, cooperative, and thrift banks to market, sell, and service microinsurance products as a financial product and as collection and payment agents. It establishes objectives to ensure microinsurance products are clearly distinguished from bank products and comply with insurance commission rules. It also aims to protect consumers by requiring functioning customer care and claims processes. The circular details documentary requirements banks must fulfill to be involved in microinsurance, including board resolutions, agreements, licenses, and certifications.

1. BSP CIRCULAR NO. 683
MARKETING, SALE AND SERVICING OF
MICROINSURANCE PRODUCTS
dated 23 February 2010
Gerry Butardo
Bangko Sentral ng Pilipinas
2010 RBAP‐MABS Na.onal Roundtable Conference
Hya= Hotel and Casino, Manila
June 2‐3, 2010

2. BSP CIRCULAR NO. 683
MARKETING, SALE AND SERVICING
OF MICROINSURANCE PRODUCTS
dated 23 February 2010

3. Background
 Pursuant to the financial inclusion thrust of
National Strategy and Regulatory Framework
for Microinsurance, a rural, cooperative or
thrift bank, including its authorized branch/es,
extension office/s and other banking offices
(OBOs), can present, market and sell
microinsurance products as defined under
IMC No. 1-2010, provided that the
microinsurance product is duly approved by
the Insurance Commission.
3

4. Objectives
For this purpose, a rural, cooperative and
thrift banks can:
 serve microinsurance as a “financial
product of an allied undertaking” under
Section 20 of the General Banking Law
(GBL); and
 service microinsurance products as
collection and payment agents pursuant to
Section 53.3 of the GBL.

5. Goals
 Ensure that microinsurance products
presented and marketed are clearly
distinguishable from bank products;
 All organic documents, informational and
promotional materials shall prominently
display both the name of the issuing
insurance provider and a clause stating
that the insurance product/s of (name of
issuing insurance provider) is/are not
insured by PDIC and is/are not guaranteed
by the bank);

6. Goals (Cont.)
 Ensure compliance with pertinent
laws and rules on the sale of
microinsurance products set by the
Insurance Commission; and
 Check whether the microinsurance
product-issuing insurance provider
has a functioning customer care and
claims-handling mechanism to handle
consumer protection issues.

7. Documentary Requirements
1. Board Resolution
2. Memorandum of Agreement
3. Letter of Approval from IC
4. Certificate of Authority from IC for insurance
provider
5. Bank’s license as broker/agent issued by IC
6. Bank’s President Certification on continuing
compliance
7. Letter of undertaking from Bank’s President
8. Such other information as may be required
by BSP.

8. Thank You!
www.bsp.gov.ph
gbutardo@bsp.gov.ph