THE INSURANCE Commission (IC) is now requiring new insurance adjusters to secure endorsement from two associations related to the industry.
The IC said in a circular letter posted on its website on June 17 that all insurance adjusters intending to do business in the country must furnish an endorsement from either the Association of Philippine Adjustment Companies (APAC) and Philippine Institute of Loss Adjusters (PILA).
“Endorsement from the said adjusters associations must be attached together with the application for license of insurance adjusters and be submitted to the Licensing Division,” the IC said.
“This new requirement will ensure that integrity, honesty and ethical business practiced are observed in the insurance adjuster business in the country,” Insurance Commissioner Dennis B. Funa was quoted as saying in a separate statement.
Insurance adjusters are tasked to investigate the validity and extent of claims.
According to the circular letter, APAC and PILA shall “determine the applicant’s qualifications based on standards set by respective association, and shall endorse the qualified applicant to the IC.”
However, the regulatory body noted that membership or non-payment of association dues to the claims adjustment organizations shall not hinder the approval of endorsement from APAC and PILA.
“While the new regulation requires a favorable endorsement from APAC and PILA, the Insurance Commission, as the ultimate decision-making authority for approving an adjuster’s license, may direct the issuance of the license even without the endorsement if we find that the non-endorsement unjustified,” said Mr. Funa.
APAC and PILA are the two organizations of claims adjustment professionals in the country. PILA is an individual membership while APAC is a company membership.
Sought for comment, Philippine Insurers and Reinsurers Association, Inc. Executive Director Michael F. Rellosa welcomed the move of the IC.
“This is fine as this will help professionalize the adjusting industry even more,” Mr. Rellosa told BusinessWorld in a text message.
He added that membership into an association “bodes well for them as best practices can be institutionalized.”
Under the Insurance Code, no person shall act as an adjuster, acting in behalf of either the insurance firm or the insured, unless authorized by the IC. — Karl Angelo N. Vidal