Pasig city: Insurance penetration in the Philippines remains below 2 percent, but an official of digital-only insurance firm Singlife Philippines is optimistic for an improvement given the affordability and digital-access options. In an interview on the sidelines of the launch of the Singlife Insurance Microsite, a partnership between Singlife Philippines and Asia United Bank (AUB), Singlife Philippines Chief Executive Officer Lester Cruz said stakeholders “have to do so much more” to increase the insurance penetration rate.
According to Philippines News Agency, Cruz stated they do not have a specific target number of clients to onboard through AUB’s electronic wallets, HelloMoney and Hello Pag-IBIG, but they would be satisfied if around 3 to 5 percent of the bank’s approximately 7 million clients avail of the insurance products by the end of 2025. When asked about potential drivers that would encourage the public to obtain insurance coverage, Cruz highlighted affordability, ease and convenience of accessing the products, and value.
He mentioned that being a digital-only insurance company is advantageous since people are increasingly confident in using their mobile phones to access products and services at any time. Education and information campaigns, such as participating in events like running events and bridal fairs, are also crucial in helping people understand the value of having insurance, he noted.
“They’re beginning to realize the value of having insurance as shown in the kind of customer acquisition that we’re seeing month-on-month, which has been better than ever before,” Cruz said. He attributed this not only to the efforts in creating meaningful products and improving the customer experience but also to the progress made in educating the Filipino populace about insurance.
Cruz added that most of their clients are in their mid-20s to early 30s because the younger demographic tends to adapt to digital solutions more quickly. However, they encourage more clients over 30 years old to consider insurance. In terms of government support, Cruz mentioned that the insurance sector is collaborating closely with the Insurance Commission (IC) to ensure that more people receive insurance coverage as swiftly as possible.