IC Issues Relief Measures for Policyholders Amid National Energy Emergency

The Insurance Commission (IC) has once again demonstrated its commitment to protecting the insuring public by issuing Circular Letter No. 2026-11, dated 13 May 2026, providing guidelines on relief measures for policyholders, planholders, members, and the general public during the State of National Energy Emergency.

Background

Following the issuance of Executive Order No. 110, s. 2026 by the Office of the President, which declared a State of National Energy Emergency due to the ongoing conflict in the Middle East disrupting global oil markets, the IC — acting in coordination with the national government — has directed all its regulated entities (ICREs) to adopt concrete relief measures. The rising cost of oil and commodities has placed significant financial strain on the public, and the IC has responded swiftly to ease the burden on policyholders and plan holders alike.

Who is covered?

The Circular applies to all:

• Insurance Companies (Life and Non-Life)

• Mutual Benefit Associations (MBAs)

• Pre-Need Companies

• Health Maintenance Organizations (HMOs)

• And their respective agents

What relief measures are in place?

(a) Extension of Grace Period for Premiums and Contributions

All ICREs are directed to extend the grace period for the payment of premiums, contributions, installment amounts, and membership fees that remain unpaid during the period of 15 April 2026 to 31 May 2026, for at least 90 days, without interest or penalty. ICREs may also extend this to a later date as they deem appropriate.

(b) Extension of Coverage / Hold Cover Arrangements

Policies or agreements about to lapse or expire, or those with confirmed renewal applications, within 15 April to 31 May 2026, shall be extended or covered through hold-cover arrangements for at least 90 days. Conditions apply, including the requirement that premiums be paid within the 90-day period and that hold-cover arrangements be made with the written consent of the policyholder.

(c) Temporary Grace Period for Loan Payments

ICREs shall grant policyholders a temporary grace period of at least 90 days, without penalties or interest, for the payment of loans.

(d) Relaxed Loan Exposure Limits for Employees and Sales Associates

The threshold on loans extended to officers, employees, and sales associates of insurance companies has been temporarily adjusted from 6% to 20% of the company's net worth. Loans to employees shall likewise be granted a grace period of at least three (3) months without penalties or interest.

(e) Other Initiatives

ICREs are also encouraged to implement additional relief measures beyond those enumerated, provided these are consistent with applicable regulations.

Role of Agents

The IC likewise calls on all licensed agents to step up during this period by proactively reaching out to clients, providing accurate and timely information on available relief measures, facilitating claims processing, and supporting government and industry initiatives. ICREs are strongly encouraged to formulate support programs for their sales agents to enable them to carry out these responsibilities effectively.

Monitoring and Reporting

All ICREs are required to submit an initial report to the IC on all relief measures adopted on or before 31 May 2026, and to establish monitoring mechanisms for ongoing compliance.

PIRA welcomes and supports this timely directive from the IC. This Circular is a clear expression of the insurance industry's solidarity with the Filipino public during these challenging times. We urge all member companies to implement these measures promptly and to ensure that their agents and frontline staff are fully informed and equipped to assist policyholders.

Together, the government, the IC, and the insurance industry stand ready to help Filipinos weather this period of uncertainty.

For the full text of the Circular, please refer to IC CL No. 2026-11 or visit www.insurance.gov.ph.