MANILA — The Asian Development Bank (ADB) has approved a $400 million policy-based loan to support reforms aimed at improving the efficiency of the Philippines’ insurance industry, encouraging broader participation in the sector, and promoting stronger economic growth.

The Insurance Reform Program, Subprogram 1, supports broader financial sector development reforms in regulation and supervision, including greater intermediation of long-term credit for government infrastructure projects. The program seeks to foster a more efficient, consumer-oriented, and technologically advanced insurance market that strengthens climate risk management and disaster resilience.

“This program is a strategic investment in the Philippines’ sustainable and inclusive economic future. By modernizing the regulatory framework, we are not only strengthening the insurance industry itself—we are building a critical line of protection for the nation, mobilizing long-term capital for development, and ensuring that the benefits of economic growth reach every Filipino entrepreneur and household,” said ADB Country Director for the Philippines Andrew Jeffries.

The program will be implemented in three sequenced subprograms in close partnership with the Insurance Commission. It supports comprehensive reforms, including digitalization and climate finance initiatives, to enhance resilience, financial inclusion, and consumer trust.

This is ADB’s first dedicated insurance reform program, building on the bank’s ongoing support to the Philippine insurance industry and capital markets development since the late 1990s. Past initiatives include the Inclusive Finance Development Program and the Support to Capital Market-Generated Infrastructure Financing Program.

The program complements ADB’s recent support for related reforms, such as parametric and indemnity insurance under the Second Disaster Resilience Improvement Program, agriculture insurance under the Climate Change Action Program, and health insurance under the Build Universal Health Care Program.

Founded in 1966, ADB is a multilateral development bank owned by 69 members, including 50 from Asia and the Pacific, supporting inclusive, resilient, and sustainable growth across the region.