Insurance, technology good mix for inclusion
I think it will benefit the protection levels in the Philippines because current models of insurance and the products are targeted at maybe the upper-income classes
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I think it will benefit the protection levels in the Philippines because current models of insurance and the products are targeted at maybe the upper-income classes
An official of a digital insurance provider, Gigacover, maintained that with the explosion of digitization, Filipinos should take the decisive step in securing innovative insurance to protect their lives.
Insurtech, a combination of the words "insurance" and "technology," refers to the use of technology innovations designed to find cost savings and efficiency from the current insurance industry model.
And as the insurance industry is said to be ripe for innovation and disruption, Amerson Lin, co-founder, and CEO of Gigacover, stressed in Gising Na!, Daily Tribune's morning show online, that it's about time that insurers should pivot and embrace technology, as insurtech can make insurance smaller and easier to manage.
"I think it will benefit the protection levels in the Philippines because current models of insurance and the products are targeted at maybe the upper-income classes of the society, and that's because they are larger, they cover for more losses, they are more expensive. So, the first step is to make insurance more accessible and affordable. So, in terms of affordability that brings the size of the policies smaller by coverage and by maybe duration. It is what we call micro or mini-insurance. So, it becomes more affordable for the everyday person to get protected," he said.
Further, he said that the new product can improve the level of penetration of Filipinos who have insurance policies, which according to records, is currently 3 percent of the total population.
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Accessibility key to sales
"The second part is accessibility where you can purchase very easily when you feel like you have risk. It's the option available for you to buy immediately. So, I think Insuretech can do these two. It can make insurance smaller because it's all digital, it's easier to manage, and it can also make it more accessible," according to Lin.
"I believe InsureTech is one of the keys to unlocking higher insurance levels of penetration," he stated.
Also, Lin referred to various trends that are currently sprouting in the insurance industry, namely microinsurance; embedded insurance that can be purchased within the commercial transaction of another product or service; on-demand insurance that allows policies to be purchased online without directly interacting with a broker or a company representative; and the digital insurance.
"I think these trends are already happening in the insurance industry. Unlike the traditional insurer who are selling bigger packages of insurance policies. But if it's fully digital, then it can be smaller so it can go down even to a peso a day. I think we're headed in the right direction," he said.
Gigacover aims in protecting people and operations through new insurance products, a digital platform, and friendly services.
Its mission is to make insurance simple and flexible with seamless digital experiences powered by customizable products, powerful software, and customer-centric services.
Backed by a global network of venture capitalists across Singapore, Hong Kong, and the USA, Gigacover has already protected 130,000 users, with 1.1 million policies issued.
