Brokers protest proposed Insurance Code amendment.

Byline: Diane Claire J. Jiao

THE ASSOCIATION of Insurance Brokers of the Philippines (AIBP) is contesting a "discriminatory and prejudicial" proposed amendment to the Insurance Code that states that payment of premiums to brokers is not considered payment of premiums to insurers.

"Insurance agents and brokers are both authorized collectors of insurance companies," AIBP president Victorio C. Valledor said in an interview with BusinessWorld yesterday.

"Why should payments made to agents be considered payments to insurers, but payments made to brokers are not?"

Brokers are financial intermediaries who find sellers of insurance products on behalf of their clients. They are different from insurance agents who represent insurance companies.

Under the current Insurance Code, payments to financial intermediaries - both agents and brokers - are considered payments to the insurance company. Should anything happen to a policyholder in the time between the …