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Pru Life UK examine requires entry to life insurance coverage for OFWs whereas overseas

An impartial coverage paper by a prime regulation agency and commissioned by main life insurer Pru Life UK requires the federal government to evaluation current rules on promoting insurance coverage insurance policies to Abroad Filipino Staff (OFWs) whereas they’re overseas to assist them obtain monetary safety.

The paper, which seems into the present rules on cross-border promoting of insurance coverage merchandise and presents suggestions on sure measures that might enable OFWs efficient entry to totally different monetary services and products whereas they’re overseas, is in keeping with the corporate’s dedication to drive up monetary inclusion amongst Filipinos.

Authored by main regulation agency Quisumbing Torres, an affiliate of Baker McKenzie, the paper entitled “Enhancing Entry of Abroad Filipino Staff to Life Insurance coverage” additionally discusses the necessity to revisit and replace these rules in view of latest developments regarding migrant employees applications and monetary inclusion plan. 

“Our ESG framework stays pragmatic and trustworthy to our goal of serving to individuals get essentially the most out of life and additional drive up monetary inclusion within the nation. The present working preparations of OFWs make them significantly weak to life’s uncertainties. It’s our intentional aim to assist them put together for a safe and steady future,” Pru Life UK President and Chief Govt Officer Eng Teng Wong shared.

The paper identifies key challenges surrounding entry to life insurance coverage that must be addressed for the advantage of OFWs:

  • Present rules require OFWs to be bodily within the Philippines to finish a purchase order of life safety merchandise from local-based corporations. These choices are usually not sensible and will not totally cater to the wants of OFWs.
  • Life insurance coverage insurance policies sometimes mature on the age of retirement and OFWs retire within the Philippines after lengthy durations of working abroad. It’s perfect and sensible for them to acquire life insurance coverage from a Philippine insurer that can make it simpler to assert payouts with out coping with a international entity.
  • OFWs solely have a restricted time to accumulate life insurance coverage whereas they’re within the nation which prevents them from availing of such merchandise at an earlier age for decrease premiums. Their sector stays prone to being left unserved and unprotected by insurance coverage corporations because of present regulatory restrictions.

Given these findings, the paper cites these three suggestions:

  • Ease up guidelines on cross-border promoting of life insurance coverage to OFWs by recognizing reverse solicitation exceptions – Permitting OFWs to buy life insurance coverage from native corporations whereas they’re overseas would assist cowl the dangers that might be extra prevalent as they return to the nation of their retirement years.
  • Enter into bilateral and/or multilateral agreements for passporting exemptions in OFW-heavy nations – The Philippines might enter into bilateral and/or multilateral agreements that can allow native insurers to offer monetary providers to OFWs even overseas.
  • Enable monetary training, advertising and marketing, and promoting of life insurance coverage to OFWs and their households by the usage of expertise – A latest examine exhibits that OFWs solely make the most of monetary providers to remit cash and don’t have any financial institution accounts or private insurance coverage. Their information of monetary providers being provided by native corporations can also be very restricted. The Insurance coverage Fee might think about permitting monetary establishments to make use of their digital platforms to assist OFWs perceive the insurance coverage merchandise appropriate for his or her wants.

The paper is a part of Pru Life UK’s mission to assist Filipinos get essentially the most out of life by making well being and monetary safety accessible to the unserved and underserved together with our OFWs.

Whereas we proceed participating regulators to assist ease the restrictions on cross-border promoting of insurance coverage, we’ll strengthen our on-line presence and make life insurance coverage reasonably priced and simply accessible to OFWs to assist them know in regards to the totally different life safety and investment-linked merchandise out there to them.

We’ll proceed to conduct monetary literacy campaigns for OFWs and their households earlier than they work overseas by caravans and informative supplies, to coach them on the significance of saving up for themselves and their households and having layers of insurance coverage safety after working abroad.

We’ve devoted monetary advisors from our OFW PRUTectors Membership offering OFWs with sound monetary recommendation that can allow them to safe a greater future.

We additionally supply our OFW households with free monetary consultations, educating them on methods to set their monetary targets and discover methods to attain them, in addition to handle their funds with assist from our over 33,000-strong digitally-equipped monetary advisors.

To obtain Pru Life UK’s “Enhancing Entry of Abroad Filipino Staff (OFWs) to Life Insurance coverage” white paper, please go to www.prulifeuk.com.ph or this hyperlink.


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