Singlife, GCash team up on microinsurance

Life insurer Singlife Philippines has teamed up with mobile wallet GCash to pitch to the mass market “fuss-free” life protection plans for the price of a “cheap haircut.”

“What makes Singlife’s products different is that they are designed to be meaningful: offering basic protection that is easy to purchase, easy to manage, and easy to maintain. We do not have anything to hide and that makes it possible to be transparent and clear,” Singlife Philippines president and chief executive officer Rien Hermans said during the launch of the partnership on Friday.

“This partnership comes at a crucial time when health and financial security are a priority. Leveraging Singlife’s technology and offerings, we have an opportunity to provide more Filipinos with meaningful life insurance products that can effectively protect them and secure their financial well-being,” said GCash president and CEO Martha Sazon.

Singlife and GCash share the goal of simplifying insurance and reaching out to people who do not have bank accounts and have no access to other financial services, Sazon said.

“You don’t have to invest a lot of money to it. Just a few taps and you’re ready to go. What’s more: it’s affordable- like around the same price of a cheap haircut per month,” she said.

Singlife and GCash’s first joint offering is “Cash for Dengue Costs,” a comprehensive protection product that provides a multi-level benefit against medical costs due to mild to severe cases of dengue – a first of its kind in the market. As an introductory offer, Singlife will extend the cover by adding a free coronavirus (COVID-19) rider – providing customers protection from both the ongoing pandemic and seasonal worries.

Hermans noted that there were currently five million life insurance policies in the Philippines held by 3.5 million households. However, he noted that there were 27 million households in need of protection, which meant that while insurance has been available in this market for over 100 years, the penetration is still quite low.

Singlife identified several hurdles that prevent people from getting insured: limited access to buy through financial advisors, complex products, and high premiums. High premiums come with the expectation that payments will be made in five to 20 years’ time to optimize the value of the policy.

To address these concerns, Singlife harnesses digital technology to redesign its products and offer “fuss-free” protection. Hermans said Singlife’s products were “meaningful” yet easy to buy, manage and maintain.

In the case of the dengue protection product, the application process takes less than five minutes. Customers can pay, view, manage, and file claims on their Singlife policies directly in the GCash app. “This innovation is indeed made possible by fully utilizing technology and digital processes to ensure that Filipinos have a seamless and paperless experience, allowing policies to be issued and managed real-time,” said Sazon.

Initially made available to a limited group of GCash users this September, Cash for Dengue Costs will be made available to all verified GCash users via the GCash Insurance Marketplace later this year along with other Singlife protection products.

“Singlife’s vision for this partnership with GCash is making simple yet meaningful health and income protection products available to all Filipinos. This is why we are also preparing to release a full suite of products in the coming months so that the rest of the Philippine population can have no-fuss protection, helping them take better control of their financial lives in an easy, quick, and affordable manner,” concluded Hermans.