The government is finalizing guidelines to extend the availability of insurance products to overseas Filipino workers (OFWs) within the year.
The Insurance Commission (IC) is collaborating with the Department of Migrant Workers (DMW) on a circular that will outline the new regulation.
IC Commissioner Reynaldo Regalado emphasized the importance of ensuring the guidelines comply with both Philippine laws and those of host countries. The insurance industry has been advocating for changes to allow OFWs to purchase insurance policies while working abroad, lifting current restrictions that require them to be in the Philippines to complete such transactions.
With nearly two million OFWs contributing approximately $135 billion in remittances—about 10 percent of the economy—many remain without social protection, an issue highlighted by the pandemic. Originally slated for release last month, the guidelines are still under review to accommodate various adjustments.
Regalado mentioned a potential pilot program in select countries in the Middle East, Asia, and North America. Coordination with the Department of Foreign Affairs is also ongoing.
Despite delays, the IC aims to release the guidelines before the year ends. The new regulation intends to ensure that insurance premiums are paid directly, avoiding issues where payments made through relatives or friends may not be used for their intended purpose.
Expanding insurance access to OFWs is expected to boost insurance penetration, currently below two percent of GDP, and enhance financial inclusion and social protection for this vulnerable sector. Allowing OFWs to purchase life insurance while abroad will also help mitigate risks as they return to the Philippines for retirement.