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Philippines: NPC and Insurance Commission issue Joint Advisory on privacy enhancing technologies in the insurance industry

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In brief

On 11 March 2025, the Insurance Commission (IC) and the National Privacy Commission (NPC) issued Joint Advisory No. 2025-001 (“Joint Advisory“), or Considerations on the Use of Privacy Enhancing Technologies (PETs) in the Insurance Industry. 

The Joint Advisory values the adoption of PETs in the insurance industry, which may supplement existing privacy-preserving practices to mitigate data privacy risks and ensure protection of personal data processed by personal information controllers (PICs) and personal information processors (PIPs). 

In depth

The Joint Advisory applies to insurance providers, insurance and pre-need companies, health maintenance organizations, mutual benefit associations, their respective agents, brokers, adjusters, intermediaries, all other entities under the regulatory control and supervision of the IC, and PIPs of the foregoing entities.1

I. Definition and categories of PETs

PETs are defined as follows:

A collection of digital technologies, approaches and tools that permit data processing and analysis while protecting the confidentiality, and in some cases also the integrity and availability, of the data and thus the privacy of the data subjects and commercial interests of PICs.2

PETs may be categorized as follows:3

  1. Data obfuscation tools, such as anonymization, pseudonymization, synthetic data, differential privacy and zero-knowledge proofs
  2. Encrypted data processing tools, such as homomorphic encryption, multiparty computation and trusted execution environments
  3. Federated and distributed analytics, such as federated learning and distributed analytics
  4. Data accountability tools, such as threshold secret sharing and personal data stores

II. Obligations in relation to the use of PETs

The following obligations apply when a covered entity uses PETs:

  1. It must ensure that its use of PETs is compliant with the Data Privacy Act, is Implementing Rules and Regulations, and the issuances of the NPC (collectively, “Data Privacy Regulations“). PICs are responsible for the processing of personal data using PETs, including instances when the processing is outsourced or subcontracted to a PIP.
  2. It must ensure continuous compliance with its own obligations under the Data Privacy Regulations, such as, but not limited to, implementing reasonable and appropriate security measures, registration of the data processing system(s) with the NPC (if applicable), and compliance with rules on personal data breach management, including breach notification.
  3. Prior to the adoption of PETs and thereafter as may be necessary, it must conduct a privacy impact assessment on the data processing system.
  4. It may consider industry standards and best practices, technical compatibility, costs, and efficiency in assessing which PETs are most suitable for its business purposes. A covered entity may utilize more than one PET.

Recommended actions

Clients covered by the Joint Advisory are advised to take note of the considerations and obligations when selecting and/or adopting PETs in the processing of personal data.

Quisumbing Torres’ Intellectual Property, Data and Technology Practice Group may be reached for further information on the Joint Advisory.

1 Section 1, Joint Advisory.

2 Section 3, Joint Advisory.

3 Section 3, Joint Advisory.

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Please contact QTInfoDesk@quisumbingtorres.com for inquiries.

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Author

Divina Ilas-Panganiban, CIPM is a partner and the head of Quisumbing Torres’ Intellectual Property, Data and Technology Practice Group and co-heads the Technology, Media & Telecommunications (TMT) Industry Group. She participates in initiatives of Baker & McKenzie International of which Quisumbing Torres is a member firm. She is a member of Baker & McKenzie International's Asia Pacific TMT, and the Asia Pacific Intellectual Property Steering Committees.
Divina is a Certified Information Privacy Manager by the International Association of Privacy Professionals (IAPP). She currently serves as the Vice-President and Director of the Philippine Chapter of the Licensing Executives Society International, the Regional Vice-chair of the LESI's Education Committee, the Co-chairperson of the Committee on Intellectual Property Rights of The American Chamber of Commerce of the Philippines, and the Chairperson of the IAPP KnowledgeNet Chapter for the Philippines.
Divina was recently appointed to be a member of the Advisory Council for Intellectual Property (ACIP) of the Intellectual Property Office of the Philippines (IPOPHL). The ACIP is an advisory board composed of a select group of people from different sector to which IP is of great value. She was recently recognized in the Hall of Fame for Best External Lecturers by the IP Academy of the IPOPHL.
Divina just finished her stint as the chair the Unreal Campaign of the International Trademarks Association (INTA) for East Asia and the Pacific and continues to organize anti-counterfeiting activities in schools and universities around the country, educating the youth about the importance of intellectual property protection.
Divina is a multi-awarded lawyer with a stellar track record in the IP, data and technology fields. She has garnered numerous awards and accolades, including the Woman Lawyer of the Year by the ALB Philippine Law Awards 2023. She has been cited as leading lawyer for intellectual Property and TMT by The Legal 500 Asia Pacific, Chambers Asia Pacific, Managing IP, World Trademark, Asialaw and IAM Patent 1000, among others. Known for her exceptional legal expertise and unwavering commitment to her clients, Divina has established herself as a leader in her profession.

Author

Reena Mitra-Ventanilla is a partner in Quisumbing Torres’ Intellectual Property, Data and Technology Practice Group. She is a member of the Consumer Goods & Retail and Financial Institutions Industry Groups. She has 16 years of experience handling intellectual property and technology matters. She is currently the corporate secretary of the Philippine Chapter of the Licensing Executives Society International and the corporate secretary of the Philippine Franchise Association, where she also serves as the head of its Alternative Dispute Resolution (ADR) Committee. She has been appointed as a member of the INTA Bulletins Committee for the term 2024 to 2025. She is also an active member of the Women Inter-Industry Network. She co-chairs the Committee on Intellectual Property Rights of the European Chamber of Commerce. Reena is cited as Next Generation Partner in Intellectual Property by the Legal 500 Asia Pacific 2020 to 2024, IP Expert by Asia IP, 2020 to 2023, Leading Individual for Prosecution and Strategy by World Trademark Review 1000, 2021 to 2023, and Leading Individual for Patent by IAM Patent 1000, 2022 to 2023. More recently, she has been ranked Trademark Star by Managing IP's IP Star for 2023, and Band 4 for Intellectual Property by Chambers Asia Pacific.

Author

Berenice Joanna G. Dela Cruz is an associate in Quisumbing Torres. She works with various practice groups in the firm, including Corporate & Commercia/M&A, Dispute Resolution, Intellectual Property, Data and Technology, and Employment. Prior to joining the firm, she was a legal intern in the Office of the Solicitor General where she assisted in research, preparation of pleadings, meetings with clients and court hearings. Berenice graduated cum laude from the University of the Philippines College of Law in 2022, and ranked 5th in her batch. She also received the Dean's Medal for Academic Excellence and commendations for her participation in several international moot court competitions. She was newly admitted to the Philippine bar in 2023.

Author

Cara Patrice Rosete is an Associate in Quisumbing Torres, Manila office.

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