Philippine digital insurance surging as e-wallet market booms

Philippine digital insurance surging as e-wallet market booms | Insurance Business Asia

Technology

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Technology

By
Kenneth Araullo

The competition to capture a larger share of the Philippine e-wallet market is heating up as banks and financial technology firms expand their insurance product offerings through digital platforms, according to new research.

This insight comes from a global survey, including the Philippines, commissioned by Chubb and conducted by iResearch Services for Q2 2023. The study encompassed 2,000 consumers and 200 financial executives across North America, Latin America, Asia-Pacific, and Europe.

“Digitized insurance is already widely popular with global consumers, and financial service providers are building trust and loyalty while unlocking new avenues for growth by offering customers simple, relevant and affordable insurance protection options embedded in their digital customer journey,” Chubb chief digital business officer Sean Ringsted said in a report from the Inquirer.

The report also highlights that this trend is global, with companies in Asia and Latin America heavily investing in digital insurance capabilities. Findings from the survey revealed that 56% of financial executives worldwide involved in insurance decision-making anticipate generating over 10% of their revenue from embedded insurance within three years. For Asia, this percentage rises to 62%.

Six in 10 consumers in Asia express interest in purchasing more insurance, with 43% seeing digital platforms as the preferred method for acquiring coverage. Moreover, 64% of Asian consumers have a high level of trust in purchasing insurance from established banks, and 57% share the same sentiment towards established insurers.

Digital-only insurers are also quite popular in the region, with 40% of respondents saying that they have high levels of trust in insurance purchases from these companies, and 31% from digital-only banks.

“Consumers’ growing digital-first expectations and partners’ focus on building new, sustainable revenue streams are fuelling the adoption of embedded insurance by fintech firms and banks in Asia,” Chubb Asia-Pacific head of digital Isabella Carvalho said.

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