The Asian Development Bank (ADB) approved a $400 million policy-based loan to support reforms to raise the efficiency of the Philippines’ insurance industry.

The ADB said the Insurance Reform Program, Subprogram 1 supports broader financial sector development reforms in regulation and supervision, including greater intermediation of long-term credit for government infrastructure projects.

It aims to foster a more efficient, consumer-oriented and technologically advanced insurance market that strengthens climate risk management and disaster resilience.

The new program will be implemented in three sequenced subprograms, in close partnership with the Insurance Commission.

It supports comprehensive reforms including cutting-edge 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," ADB Country Director for the Philippines Andrew Jeffries said.

"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,” Jeffries added.

ADB PHOTO