Philippines expands allowable investments for regulated insurers

It introduces investment types like debt securities by supranational organisations.

The Philippines’ Insurance Commission released the “Omnibus Guidelines on Investments,” aimed at updating and consolidating the rules on allowable investments for insurance companies, professional reinsurers, and mutual benefit associations (ICREs).

According to Insurance Commissioner Reynaldo Regalado, the guidelines are intended to improve the ability of regulated entities to respond to market developments whilst ensuring the stability of their financial assets and the protection of policyholders. 

The new guidelines introduce additional types of allowable investments, including structured products, debt securities issued by supranational organisations, and various investment vehicles. 

These instruments no longer require prior approval by the Commission, provided they meet regulatory conditions such as minimum credit ratings or listings on recognised exchanges.

The circular also removes the prior approval requirement for certain Philippine Peso and foreign currency-denominated investments that comply with accepted market standards and have undergone external review, including credit ratings or exchange listings.

Commissioner Regalado said the updated rules aim to remove bottlenecks in the investment approval process and reduce regulatory burden whilst maintaining safeguards to manage risk.