Insurance digitalization rides e-wallet boom

MANILA  -The scramble to corner a greater share of the e-wallet market is intensifying as banks and financial technology firms expand their offerings of insurance products through digital platforms, according to a global survey that included the Philippines.

Insurance firm Chubb, which is listed at the New York Stock Exchange, commissioned iResearch Services to conduct the research. Done in the second quarter of 2023, it covered 2,000 consumers and 200 financial executives in the regions of 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,” said Sean Ringsted, chief digital business officer of Chubb.

Digitized insurance

“As highlighted in the report, this is a global phenomenon, with companies in Asia and Latin America investing heavily in these digital insurance capabilities,” Ringsted said.

Findings show that a majority (56 percent) of financial executives involved in insurance decision-making globally expect to generate more than 10 percent of their revenue from embedded insurance within three years. In Asia, the percentage is even greater at 62 percent.

In Asia, 60 percent of consumers are interested in purchasing more insurance and 43 percent believe that digital is the obvious way to buy it.

Further, in Asia, 64 percent of consumers expressed high levels of trust in purchasing insurance from established banks and 57 percent indicated the same from established insurers.

Meanwhile, 40 percent expressed high levels of trust in insurance purchases from digital-only insurers and 31 percent from digital-only banks.

Embedding products

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

The study found that in the Philippines, the insurance penetration index—the ratio of underwritten premiums to gross domestic product—is 2 percent or less than half of that in developed countries.

Chubb has partnered with GCash, which now offers insurance protection in its app-based transactions, offering coverage of bill payments and purchase expenses in the event of injury or death.

Through Chubb, GCash also offers purchase protection and buyer’s protection for items bought using its app. INQ