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Government to start work on 75 airport projects

THE Department of Transportation on Monday said it will soon begin work on 75 more airport projects.

“To date, the DoTr, in partnership with CAAP (Civil Aviation Authority of the Philippines)…, have already completed 121 airport projects, while 114 are well underway, and 75 more are set to begin work soonest,” the department said in a statement on Monday.

According to a document obtained by BusinessWorld, the 75 airport projects include the construction of the administrative building of Clark International Airport; strip grade correction of the runway of Kalibo Airport; improvement of the passenger terminal building of Bacolod Airport; and construction of apron and taxiway, among others, of Catbalogan Airport.

Among the completed airport projects so far are the upgrade of airports in Laoag, Vigan, Tuguegarao, Palanan, Cauayan, Mamburao, Lubang and Romblon.

Projects that are currently ongoing are the upgrade of airports in Vigan, Basco, Calayan, Virac and Antique.

The DoTr said this is part of its mandate to advance air connectivity and mobility in the country despite the pandemic crisis.

In January last year, the Tourism department and the DoTr signed a memorandum of agreement to intensify infrastructure development that will support the development and promotion of tourism circuits across the country. — Arjay L. Balinbin

NTC declares DITO compliant with speeds, coverage commitments

PHILSTAR/MICHAEL VARCAS

THE National Telecommunications Commission (NTC) declared DITO Telecommunity Corp. compliant with its requirement to cover 37.03% of the country’s population and provide a minimum average broadband speed of 27 megabits per second (Mbps) in its first year of service.

“DITO passed its commitments on its first year of technical audit,” the NTC said in a statement on Monday, citing the results of the technical audit conducted by R.G. Manabat & Co.

According to a copy of its report to the NTC, R.G. Manabat & Co. said DITO’s national population coverage reached 37.48% while its minimum average broadband speeds delivered reached 85.9 Mbps and 507.5 Mbps for all 4G and 5G sites, respectively.

The network covered more than 37 million people based on the 2015 national census of 100,983,124.

“The reach covered a total of 8,860 barangays,” the NTC said.

“The minimum Mbps per testing point for all sites are: near point – 102.0 Mbps for 4G and 769.1 Mbps for 5G; middle point – 91.2 Mbps for 4G and 437.1 Mbps for 5G; and far point – 64.4 Mbps for 4G and 316.5 Mbps for 5G,” R.G. Manabat & Co.’s report said.

However, DITO’s actual speeds may differ when its network is commercially live, the report added.

According to the NTC, R.G. Manabat & Co. used stratified random sampling to choose 12% of more than 1,600 cell sites for testing.

“For each location (near the base station, middle point and far from the base station), three (3) tests were conducted. The test software used is TEMS investigation software V22.00,” the commission said.

The telco startup is scheduled to launch commercial operations next month.

“A healthier competition within the industry fulfills President Duterte’s promise to the Filipino people of better telco service thru cheaper prices and improved internet speed,” the NTC said. — Arjay L. Balinbin

Century Properties co-managing director resigns to resolve issues in own company

JOSE ROBERTO R. ANTONIO has resigned as co-managing director of Century Properties Group, Inc. (CPG) as he resolves issues in his separate company, the listed holding firm said on Monday.

The company said its board accepted the resignation of Mr. Antonio, who also quits as a member of the board of directors, “effective immediately.”

“The Board noted that the reason for his resignation is to allow him to focus on addressing the pressing issues in his own company and its allied businesses,” it told the stock exchange.

Mr. Antonio’s private company Revolution Precrafted Philippines and its subsidiaries have reportedly been hit hard by the pandemic.

“I know I am making the correct decision to step down from my position in CPG as I will leave it under the very capable leadership of the Board and the professional expertise of its senior management team,” Mr. Antonio said in a statement.

In a separate statement released on Monday, Revolution Precrafted and its allied companies Resurgent Corp., Renegade Branding Concepts and Radiant Beauty clarified that they would settle all of their due obligations.

“The company is ready to settle legitimate obligations, which have fallen due and has no intention to renege on these legitimate contractual claims. The company is likewise in the process of collecting what is due, then from those that have also defaulted in their obligations to Revolution,” Revolution Precrafted said.

Revolution Precrafted explained that the coronavirus disease 2019 (COVID-19) crisis “activated force majeure stipulations” in its business dealings. Force majeure clauses free parties from liability when unforeseen events happen, which leads to them unable to fulfill obligations as stated in the contract.

The statement also said Revolution Precrafted CEO Mr. Antonio and his companies — Resurgent, Renegade and Radiant — remain viable.

“On this note, we caution people and individuals from making any malicious and false statements against Robbie Antonio and his companies. We hope that we be allowed to fix the current situation without threats or intimidation, or else the company will likewise be forced to institute legal charges, both criminal and civil,” Revolution Precrafted added.

Meanwhile, CPG said it was looking for a replacement to fill Mr. Antonio’s seat as member of the company’s board of directors.

Century Properties shares at the stock exchange went down by 2.41% on Monday to finish at P0.405 per share. — Keren Concepcion G. Valmonte

Citicore Power targets commercial run of Pampanga solar farm by end-2021

CITICORE Power, Inc. is aiming to complete its solar farm in Pampanga by yearend as construction is scheduled to start next month, its top official said on Monday.

“This will probably be one of the fastest construction timelines because we’re aiming to have it commissioned after nine months. We’re hopeful that we would be able to complete the plan by yearend,” Citicore Power President Oliver Y. Tan told BusinessWorld in a phone interview.

The solar facility, a joint venture with Ayala Corp.’s energy arm, is preparing for its scheduled ground breaking “in the second week of March,” he said.

He added that the group was in the process of finalizing the legal and engineering plans as well as the remaining permits for building its 50-megawatt of alternating current (MWac) facility in Arayat and Mexico, Pampanga.

Citicore Power is a wholly owned subsidiary of Citicore Holdings, Inc.

Citicore subsidiary Citicore Solar Energy Corp. earlier signed a shareholders’ agreement with Ayala-led AC Energy Corp. and the latter’s unit ACE Endevor, Inc. to build the solar facility.

In a disclosure on Feb. 5, AC Energy said that it would extend a loan of P2.675 billion to the project’s special purpose vehicle Greencore Power Solutions 3, Inc. to finance the facility’s design, engineering, construction, procurement and supply, operation and maintenance.

The project’s construction timeline was already pushed back to a later schedule due to the restrictions caused by the global health emergency, Mr. Tan said.

“We encountered some delays in rolling out. In fact, (we should have broken ground for the) Pampanga project last year but we encountered delays mainly because of the pandemic. We’re hopeful that we’ll be able to catch up this year, especially once the (coronavirus disease 2019) vaccine arrives and we have the immunization going on,” he said.

“We’re looking at things to regain momentum by the second half of the year,” he added.

Once completed, the solar facility would be the first project to contribute to Citicore Power’s goal of reaching a total capacity of 1.5 gigawatts by 2025, Mr. Tan said. This would be on top of the 168 MW that the company’s eight existing solar farms are producing.

On its website, Citicore Power says it is a renewable energy company committed to achieving a “healthy energy mix and lessening the country’s dependence on fossil fuels.” — Angelica Y. Yang

From GMA News TV to GTV 

Rebranded station goes after younger audience by expanding beyond news    

THE KAPUSO Network’s second free-to-air channel, GMA News TV, is rebranding as GTV beginning Feb. 22, offering “the news you trust and new shows to love.” Aside from a large number of news programs, it’s programming mix will now include basketball,  rom-coms, public affairs and lifestyle shows, and anime.

“We’ve noticed that the audience now, especially during this time, they’re looking for more variety. So, while we’re retaining the love and trust that news programs of GMA News TV, we’ve started adding a lot of other shows,” Annette Gozon-Valdes, GMA Films, Inc.’s President and Programming Consultant to the GMA Chairman and CEO, said during an online press conference on Feb. 19. “[So,] the name GMA News [TV] wouldn’t really be any more because of the variety of shows.”

“The difference between GMA and GTV is that we want to really touch the hearts of the young and young at heart with this channel because we feel that the audience is looking for variety and we want to be able to fill that void,” Ms. Gozon-Valdes added.

GTV is not giving up on news — it will air a full roster of news programs from GMA News, GMA Regional TV, and DZBB, including the live telecast of Super Radyo DZBB’s reports and commentaries on Dobol B TV, as well as Connie Sison and Raffy Tima’s midday newscast Balitanghali. GTV will also simulcast GMA’s flagship news program 24 Oras, anchored by GMA News pillars Mel Tiangco, Mike Enriquez, and Vicky Morales.

Meanwhile, the channel’s primetime newscast State of the Nation (SONA), bannered by Atom Araullo and Maki Pulido, will give “depth and context to the headlines.”

Local news reports are accessible to more viewers via the GMA Regional TV Strip and GMA Regional TV Weekend News.

GTV will also be airing the upcoming 96th season of the Philippines National Collegiate Athletic Association (NCAA) Season.

“We’ve been very busy coordinating now with the NCAA policy board to finalize Season 96. GTV will be allocating a big chunk of its airtime for the games,” First VP and Head of Regional TV and Synergy Oliver Amoroso said.

“We are also open in the future to other high quality sports content but for now we are concentrating on NCAA’s Season 96,” Mr. Amoroso added.

ROM-COMS AND ANIME
GTV will also showcase new programming options such as the fantasy-romance The Lost Recipe starring Mikee Quintos and Kelvin Miranda.

Airing on Saturdays will be an anthology of fantasy-infused romantic comedies titled My Fantastic Pag-ibig featuring today’s young loveteams; Game of the Gens, hosted by Sef Cadayona and Andre Paras, which fuses singing, dancing, and playing games; and a cooking show, Farm To Table, featuring chef JR Royol.

Upcoming shows include Heartful Café, starring singer Julie Anne San Jose and David Licauco; the romance-mystery mini-series Love You Stranger featuring real-life couple Gabbi Garcia and Khalil Ramos; and FLEX, starring Mavy Legaspi, Lexi Gonzales, Joaquin Domagoso, and Althea Ablan.

On GTV’s Happy Hour strip, Vicky Morales spreads positivity in news magazine show, Good News; documentarist Kara David explores Filipino food in Pinas Sarap; Susan Enriquez tackles financial management in Pera Paraan; Gabbi Garcia brings the latest trends in IRL; and Drew Arellano gets into more travel adventures in Biyahe ni Drew.

Public affairs and lifestyle shows will air throughout the week with Kara David’s Brigada, Susan Enriquez’ iJuander, Tonipet Gaba’ Pop Talk, and Solenn Heussaff and Gil Cuerva in Taste Buddies.

Ms. Gozon-Valdes noted that the channel will also be launching Japanese anime series such as Pokémon and Dragon Ball Z.

“We are focused now on the classics, but we are also on the lookout to acquire new titles,” she said.

GTV is available via free-to-air, cable, satellite, and on GMA Affordabox and GMA Now as well as other digital receivers. GTV’s programs also air abroad via the Network’s international channels GMA Pinoy TV, GMA Life TV, and GMA News TV International.

For more details, visit GTV’s official social media account @GTVPhilippines on Facebook, Twitter, Instagram, and Tiktok. — Michelle Anne P. Soliman 

Gov’t fully awards T-bill offer despite higher rates

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday even as rates increased across the board after months of decline due to faster inflation and rising US bond yields.

The Bureau of the Treasury (BTr) raised P20 billion as planned via the T-bills on Monday as total bids reached P50.051 billion, making the offer over twice oversubscribed.

The BTr also opened its tap facility to raise another P5 billion via the one-year instruments.

Broken down, the Treasury raised P5 billion as planned from the 91-day debt papers, with total tenders reaching P12.613 billion. The three-month papers fetched an average rate of 0.875%, up by three basis points (bps) from the 0.845% seen at last week’s auction.

The BTr also borrowed the programmed P5 billion via the 182-day T-bills from P13.127 billion in bids. The average yield of the six-month instruments inched up by 2.1 bps to 1.067% from last week’s 1.046%.

Lastly, the government made a full P10-billion award of the 364-day securities on offer as demand for the tenor hit P24.311 billion. The one-year T-bills were quoted at 1.527%, jumping by 11.1 bps from the 1.416% fetched previously.

National Treasurer Rosalia V. de Leon said the sudden increase in T-bill rates reflected a correction after US bond yields continued to rise.

Bonds have been bruised by the prospect of a stronger economic recovery and yet greater borrowing as US President Joseph R. Biden’s $1.9-trillion stimulus package progresses, Reuters reported.

Yields on 10-year Treasury notes have already reached 1.38%, breaking the psychological 1.30% level and bringing the rise for the year so far to a steep 43 bps.

The yield on the benchmark 10-year Treasury note, which rises when bond prices fall, climbed to a one-year high of 1.36% last week, fueled by expectations that progress in the countrywide vaccination program and additional fiscal stimulus would further spur economic growth.

Meanwhile, back home, a bond trader said the higher T-bill rates fetched on Monday show investors are now becoming more cautious over the possible impact of accelerating inflation.

“[It’s] telling that CPI (consumer price index) worries are now affecting end-users’ demand. Liquidity is still there but rates are moving towards more rational levels,” the trader said via Viber, adding rates may rise further in the coming auctions.

Headline inflation quickened to a two-year high of 4.2% in January as food and transport prices continued to spike.

However, despite expectations of a further increase in inflation in the coming months, the Bangko Sentral ng Pilipinas’ (BSP) policy-setting Monetary Board on Feb. 11 kept its benchmark interest rates unchanged at their current record lows to support the economy’s recovery.

Still, it raised its average inflation forecast for the year to 4%, the upper end of its 2-4% target, from 3.2% previously. Meanwhile, the BSP lowered its forecast for next year to 2.7% from 2.9% previously.

The Treasury this month raised P127 billion from the local debt market, more than its P110-billion borrowing program for February, as the government opened its tap facility several times to take advantage of lower rates.

It was originally set to borrow P140 billion via T-bills and Treasury bonds (T-bonds) in February but it canceled a scheduled offering of P30 billion worth of three-year papers to give way to its retail Treasury bond (RTB) sale.

Of the total, P97 billion was raised via weekly T-bill auctions, breaching the P80-billion program. Meanwhile, it borrowed P30 billion as planned via T-bonds.

The government is selling three-year RTBs until March 4, unless the offer period is closed earlier. The bonds carry a coupon rate of 2.375% and are being sold for a minimum investment of P5,000.

The Treasury sold an initial P221.218 billion in RTBs at the rate-setting auction held on Feb. 9.

The government is looking to borrow P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of gross domestic product. — B.M. Laforga

Urban planning shouldn’t be led by politicians, says expert

THE PHILIPPINES should develop vertical cities to accommodate more people, lessen the traffic, and preserve open spaces, according to Felino A. Palafox, Jr., Palafox Associates principal architect-urban planner and founder. — REUTERS

By Arjay L. Balinbin, Senior Reporter

URBAN PLANNING in the Philippines is often dictated by the whims of politicians, who fail to take into account traffic, commerce, and the environment, an urban planning expert said.

“We have 1,600 local government units (LGUs) and not many of them have experts in planning, and planners are under engineering departments. Many of them are political appointees,” Felino A. Palafox, Jr., Palafox Associates principal architect-urban planner and founder, said during the Philippine Star Property Report PH’s online forum on Monday.

“I’ve spoken to someone, ‘Why did you approve this type of land use?’ You know what I was told?  ‘Architect, that’s a political decision; it’s not an urban planning decision.’ Urban planners are superseded by political decisions. So urban planning in the Philippines is run mostly by politicians, if I may say,” he added.

Mr. Palafox said the government and the private sector should work towards creating cities where traffic and environment are given extra attention in the planning stage.

One of the solutions is to review the existing “obsolete laws,” including the National Building Code.

Mr. Palafox said the Philippines should develop vertical cities to accommodate more people, lessen the traffic, and preserve open spaces.

“One of the problems of the cities… is that they don’t consider the environment. They don’t consider the traffic. And here comes LGUs approving things and land use… We have to go towards vertical cities, so we will have more open spaces. It’s really about planning,” he said.

“It’s not enough that we have blueprints, blueprints, blueprints. We need a planning system, not just blueprints, blueprints, blueprints,” Mr. Palafox added.

On the government side, Department of Public Works and Highways (DPWH) Build, Build, Build Chairperson Anna Mae Y. Lamentillo said they believe in “design and masterplans.”

“For example, the Luzon Spine Expressway Network. We really did the masterplan first and looked at the numbers before undertaking which projects to prioritize and how much these will benefit the Filipino public,” she noted.

“I agree that there is a need for pedestrian infrastructure. We have been pushing for pedestrian infrastructure ourselves. In fact, the DPWH has issued several department orders related to that,” she added.

To recall, Public Works Secretary Mark A. Villar issued a department order last year prescribing the standard design of bicycle lanes along national highways.

Mr. Villar also mandated all DPWH operational units to include pedestrian facilities in all new road projects.

“We cannot do much on existing projects, but on new projects, they have to include pedestrian and bicycle components from the onset of the project,” Ms. Lamentillo added.

For the private sector, Buddy Tan, transport planning head of Ayala Land, Inc., said: “In Ayala, it’s always about creating value for your investment… in terms of facilities, utilities, and infrastructure.”

“We have always maintained that. We put the best efforts in doing what we can in whatever the private sector is asked to do when we get involved in a project,” he added.

BoI approves incentives for electric vehicle tech startup

THE Board of Investments (BoI) has approved start-up company CHRG Electric Vehicle Technologies Inc. as a new domestic producer of electric vehicle (EV) fast chargers and retrofit kits under the Investment Priorities Plan.

The government’s Investment Priorities Plan recognizes as eligible for tax incentives “innovation drivers” that facilitate the entry of new technologies and government-funded research and development into the market.

CHRG has invested P3.9 million in its production facility at the University of the Philippines-Diliman.

“Once it gains traction, the company has plans to move out of the capital region to be able to secure a more cost-effective location, with Bulacan or Rizal as targeted spots,” BoI said in a press release on Monday.

The university, which owns the Charging in a Minute technology, has allowed CHRG to produce the fast charger units while they finalize a licensing agreement for product sales.

CHRG will be able to produce 12 fast charger units and 236 retrofit kits each year.

“We look forward that homegrown technologies like this will play a major part in the development of electric vehicles in the country as we gradually begin the transition from fossil-fueled cars to environment-friendly vehicles and aspire to be a manufacturing hub for the EV components,” Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo said.

The Trade department is also studying electric vehicle manufacturing as a potential competitive advantage for the Philippines in a 15-country trade deal signed last year, Trade Assistant Secretary Allan B. Gepty said earlier this month.

Global manufacturers are also looking at exporting EVs to the Philippine market. Nissan Philippines, Inc. is planning to introduce its electric vehicle (EV), the Nissan Leaf, to the country this year. — Jenina P. Ibañez

LA-based Pinay singer releases single inspired by popular K-drama

Los Angeles-based Filipino singer Bey

LAST YEAR, Los Angeles-based Filipino singer Bey posted a video snippet of her singing Filipina singer-songwriter Moira Dela Torre’s “Ikaw at Ako” online. Then Darwin Hernandez, founder of music management group Soupstar Music, came across the cover and he reached out to the young artist.

Bey was already learning Korean and writing hangul when Soupstar Music artist Eunice Jorge, who wrote and produced “Crash Landing,” presented her with the song which is in a combination of English and Korean.

“It was such a great opportunity to take on, even if it was during a time where everything has to be done over Zoom,” the singer, who goes by the single name Bey, told BusinessWorld in a Zoom interview about recording her first single.

“So, when it came to [recording] ‘Crash Landing,’ it would basically just be me with a setup in my garage,” she said.

After a few virtual songwriting, rehearsal, and recording sessions between the Soupstar management and the singer, the demo of “Crash Landing” was submitted to Universal Records Philippines.

“It was kind of a blind audition [type of situation] where they had heard the song but they didn’t know who I was. So I’m just very grateful that they were interested in my music,” said the young singer.

Inspired by the popular South Korean television series, Crash Landing on You (2020), the song is about hoping for one’s own Captain Ri (the show’s leading man) — someone who will stand by you despite obstacles, and the excitement and reality of romantic relationships.

As for her upcoming projects, Bey plans to get into the songwriting process and participate in more online performances.

“I just want to release new music. I want to try to experiment and see what fits with my voice,” she said. “I’m definitely working on more performance videos to come out soon.”

“That’s the feeling of when you put music out there even if [just] one person loves it — that means so much to you… so, just keep at it,” Bey said. “Even during a time like this, I think it’s never the wrong time to put out something that you’re proud of.”

“Crash Landing” is available on Spotify, Apple Music, YouTube Music, Amazon Music, Deezer, and digital stores worldwide under Universal Records Philippines. The music video is available at https://youtu.be/7kJmt81CbtU — Michelle Anne P. Soliman

Shopping malls now host saliva collection sites for RT-PCR tests

THE Philippine Red Cross (PRC) is opening saliva collection centers for coronavirus disease 2019 (COVID-19) tests in various shopping malls nationwide.

Robinsons Land Corp. (RLC) said it signed a partnership agreement with PRC to establish 20 drive-thru saliva collection sites for RT-PCR (reverse transcription-polymerase chain reaction) testing in its malls.

“By taking advantage of Robinsons Malls’ strategic locations in key cities, PRC’s Drive-Thru Saliva Collection Sites will now be more accessible to the public, servicing thousands of Filipinos,” RLC said in a statement.

The sites will be located in the following Robinsons Malls in Luzon: Robinsons Place Malolos, Robinsons Starmills, Robinsons Luisita, Robinsons Place Pangasinan, Robinsons Place Santiago, Robinsons Place Manila, Robinsons Otis, Robinsons Metro East, Robinsons Place Antipolo, Robinsons Town Mall Malabon, Robinsons Novaliches, Robinsons Place Dasmariñas, Robinsons Place Imus, and Robinsons Place Gen. Trias.

In the Visayas, collection sites will be found in Robinsons Galleria Cebu, Robinsons Place Bacolod, and Robinsons Place Pavia; and in Mindanao: Robinsons Place Butuan, Robinsons Place Valencia and Robinsons Place Iligan.

At the same time, Ayala Malls is working with the PRC to set up collection sites in Circuit and Market! Market!.

“Ayala Malls offered its open spaces to support The Philippine Red Cross by providing testing facilities. In addition to Circuit and Market! Market!, we look forward to accommodating more Red Cross testing sites in our malls,” Ayala Malls President Christopher Maglanoc said in a statement.

Also, Araneta City signed an agreement with PRC to host a drive-thru saliva collection site at the Araneta City Bus Port, in front of Ali Mall in Cubao. The site will be open from 9 a.m. to 5 p.m. until August 2021.

Those interested may book their appointments online at 143.redcross.org.ph and pick the mall of your choice.

Premiere Horizon set for inclusion in global equity index

PREMIERE Horizon Alliance Corp. is set to be added to a regional equity index series for companies with small market capitalization beginning March 19, 2021, the investment holding company told the stock exchange on Monday.

It said the inclusion into the FTSE Global Equity Index Series for Asia-Pacific, excluding Japan and China, on the FTSE Micro Cap and FTSE Total Cap indices was announced on Feb. 19 after a semiannual index review.

But it said the index review “may be subject to revision until close of business of March 5, 2021.”

“The FTSE Global Equity Index Series (GEIS) provides market participants with a series of seamless global equity benchmarks for use in the development of institutional investor policy directions and as the basis for index-linked products,” Premiere Horizon said.

It said it was able to qualify for the FTSE GEIS as it reached the minimum required voting rights, minimum free float and foreign ownership, and a minimum investable market capitalization of $25 million.

The company also said that it was added after it reached the required liquidity threshold based on its median daily trading volume per month.

Its average daily trading volume reached P190 million since its Oct. 29, 2020 disclosure that fintech firm SquidPay Technology, Inc. would acquire a 55% ownership for P925 million.

The group led by businessman Marvin Dela Cruz has since completed an initial payment of P300 million, with the balance of P625 million to be paid through cash payments and infusion of SquidPay shares within the next two years.

On Monday, Premiere Horizon shares at the stock exchange closed 8.97% higher to finish at P3.16 apiece. — K. C. G. Valmonte

IC says insurers selling products online must be transparent about terms, responsive to clients

THE INSURANCE Commission (IC) has ordered health maintenance organizations (HMO) and pre-need companies to be more transparent with their products and terms when they offer these online.

Insurance Commissioner Dennis B. Funa issued several circulars laying out guidelines that HMOs and pre-need firms need to follow as they use digital platforms in selling their products and services.

The regulator stated in one of the circulars that “consumer confidence in electronic commerce is enhanced by the continued development of transparent and effective consumer protection mechanisms that limit the occurrence of fraudulent, misleading or unfair commercial conduct online.”

The IC said distributing and selling products digitally would also increase penetration rate and reduce costs for businesses.

The coronavirus pandemic has forced industries, including those in the insurance business, to use digital platforms and e-commerce to boost sales and expand their reach while mobility restrictions are still in place.

Based on the guidelines, HMOs and pre-need firms offering their products and services online should be transparent with their customers while providing effective consumer protection.

Basic information about the companies such as location and owners should be easily accessed by customers, and communication between the seller and buyer should be readily available as well.

The firms also have to provide sufficient details about the products and services offered, the terms, conditions and costs to help customers make an informed decision on whether or not to buy them.

User-friendly and secured payment options should also be available on e-commerce sites, while the full price indicated should be clear, such as if these are inclusive of delivery fees, taxes and other applicable charges, the IC said.

“Consumers shall be provided with a meaningful opportunity to correct or cancel the transaction or application before it is accepted and processed,” it added.

HMOs and pre-need firms are required to give clients an electronic copy of their completed application, agreement or contract, endorsement and certificate of insurance coverage, if applicable, right after the transaction is done.

If the transaction will later on be proved voidable, the companies should refund clients’ payments.

“Intermediaries (or general agents who have a website for e-commerce of HMO and pre-need) products are not allowed to approve policies or endorsements or issue such electronic documents through their website,” the regulator said.

However, the IC noted they will allow platforms owned or controlled by HMO and pre-need companies, as well as those that they partnered with, to approve policies or issue necessary documents.

Partners can be online sales portals, website links, mobile applications and online sales platforms used for e-commerce.

Meanwhile, the IC also recognized that HMOs and pre-need firms can use financial technology (fintech) to develop further their products and services, allowing any small-scale and live testing of technological innovations within a “regulatory sandbox,” after obtaining approval from the regulator.

The regulator requires successful applicants to submit a monthly report to the IC about the progress and concerns on the ongoing live testing.

“Technological innovations have been a key driver of change in the financial sector, leading to the advent of fintech,” the regulator said in a separate circular.

“This Commission recognizes the immense benefit that can be derived from further developing fintech innovations through experimentation, testing, and learning, which can be achieved compromising the protection of the interests of the insured public,” it added. — Beatrice M. Laforga

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