In early September, UnionBank of the Philippines announced its intention to further promote and encourage Filipino consumers to avail of virtual insurance products through Assured – an insurance platform developed by the bank’s financial technology unit UBX.
Specifically, the Philippine-based company hopes to continue its digitalization efforts with embedded insurance, which is essentially the integration of insurance functionality within technology and related services. In the context of the current pandemic, offering fintech insurance is relevant now more than ever, especially when considering the protection, security, and peace of mind such a service can provide.
Fintech as a Catalyst for Financial Inclusion
Data from the YCP Solidiance white paper “The Digitization of the Philippine Wallet: E-Money’s Emergence in the Philippines” reveals that financial technology would be essential to the future of financial inclusion among underbanked Filipinos, which is a significant trend considering that insurance is a closely related concept.
Furthermore, fintech has positively redefined and impacted accessibility within the modern age through several innovations, such as digital wallets, mobile banking, and mobile payments. Considering the many benefits of fintech, its application in terms of insurance is a worthwhile and inevitable venture.
As it stands, UnionBank is only one of many companies at the forefront of Philippine fintech insurance. Another company is GCash, the fintech arm of telecom provider Globe, which currently offers a wide array of products on its platform such as financial transactions even without a traditional bank account. One such product is GInsure, which offers coverages ranging from 50,750 PHP to 410,000 PHP depending on the chosen insurance package.
While it is encouraging that other companies and enterprises are contributing to the development of fintech insurance in the Philippines, it is important to consider that many Filipinos are still hesitant to engage due to several reasons.
By continuing to improve upon the infrastructure that is currently in place platforms like UBX and GCash are sure to thrive, but more importantly, those who avail of such services are also set to benefit both in the long and short term. Moving forward, look for involved companies to address these problems as the landscape of fintech insurance continues to develop.
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