Securing an insurance license for each of your team members is required to build a competent workforce and comply with the Philippine Insurance Commission (IC) regulations. Whether you’re running an insurance agency or managing a team that sells insurance products, you’ll need to assist your team in passing the licensing process. Below, we will explain what an insurance license is, the types available, the requirements, application steps, and how to renew it.
Insurance License: What It Is and Why You Need It
In the Philippines, an insurance license is a certification issued by the Insurance Commission that authorizes individuals or entities to solicit, negotiate, or sell insurance products. It ensures that professionals meet regulatory standards outlined in the Insurance Code of the Philippines, as amended, and possess the knowledge to advise clients on insurance policies. For your team, obtaining licenses demonstrates credibility, fosters client trust, and ensures compliance with Philippine laws.
Acting as an insurance agent or broker without a valid license is illegal under Section 307 of the Insurance Code and can lead to penalties or even imprisonment.
Types of Insurance Licenses Your Team May Need
In the Philippines, insurance licenses vary depending on the type of insurance products your team will handle. The main types include:
- Life Insurance License: Authorizes agents to sell life insurance and variable life contracts.
- Non-Life Insurance License: Allows agents to represent non-life insurance companies, covering products like property, casualty, or marine insurance.
- Insurance Broker License: Permits individuals or entities to act as intermediaries between clients and insurers, requiring higher capital and experience.
- Variable Life Insurance License: This is for agents selling variable life products that combine life insurance with investment components.
Your insurance license will specifically state what types of insurance policies you can provide. Your license can authorize you to manage multiple types if you meet the requirements.
Application Requirements for an Insurance License
Documentation requirements for securing an insurance license in the Philippines include:
- Fully completed Insurance Agent’s License application form
- Sponsoring the insurance company’s endorsement
- Evidence of completed insurance training or IC qualifying exam results (if required)
- Certificate confirming good moral character (no convictions for crimes involving moral turpitude)
- Notarized application form endorsed by an authorized representative of the company
Additional requirements may be necessary depending on the type of insurance license you’re applying for. Brokers, in particular, must meet more extensive criteria and require a higher level of work experience.
Process to Apply for an Insurance License
The application process in the Philippines is managed through the IC’s Licensing Division in Manila. Follow these steps:
- Prepare Required Documents: Applicants must prepare and compile the necessary documents.
- Visit the IC Office: It’s advisable to schedule an appointment before visiting. Submit the documents in person at the IC Licensing Division in Manila.
- Verification and Processing: The IC reviews the submitted documents for completeness and compliance. Processing times typically range from days to weeks, depending on the application volume and the accuracy of the submitted materials.
- Follow-Up: Applicants may need to return to the IC office to collect the license or address any additional requirements, such as clarifications or missing documents.
- Receive Your Insurance License: You can receive your license from the IC Licensing Division Office. Licenses must be renewed every three years and require proof of active engagement.
How to Renew an Insurance License
Insurance licenses in the Philippines are valid for three (3) years and, under IC Circular Letter No. 2022-03, must now be renewed online through the Insurance Commission’s eLicensing System (ELS). To renew:
- Complete the Renewal Form – Access the e-portal and complete the renewal application.
- Prepare Documentary Requirements – Submit your latest documents, including:
- Accomplished and notarized application form, signed by an authorized company officer (VP level or higher). If notarization isn’t available, include a notation.
- Documentary Stamp Tax (DST) affixed to the hard copy and reflected in the uploaded digital copy.
- Authorized company signature on both physical and digital forms.
- List of agents with names, license type, and commissions earned during the license period.
- Pay Renewal Fees – Settle the prescribed fees through the available online payment channels.
- Wait for IC Evaluation and Approval – The Insurance Commission will review your application, and once approved, your renewed license will be released electronically.
Submit renewals before the license expires to avoid penalties or loss of operating authority.
Final Thoughts
Securing insurance licenses for your team in the Philippines is a requirement to comply with IC regulations and to build a capable workforce. By understanding the types of licenses, meeting IC requirements, following the application process, and preparing thoroughly for exams, your team can succeed in the insurance industry. Start preparing for your team’s applications today to empower them to deliver exceptional value to clients while fully complying with Philippine law.
Do You Need Licenses for Your Insurance Company?
Building a workforce of licensed insurance agents in the Philippines can be a complex and challenging process. With numerous IC licenses and permits to secure, it’s easy to miss a document or forget to renew it. Unfortunately, this can lead to costly fines or even force your operations to shut down.
Thankfully, the Business Registration Philippines team provides comprehensive support for your business registration, so you don’t have to stress over the paperwork.
Contact us today to schedule an initial consultation with one of our experts:
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- Call us at +63 (02) 8540-9623