Singapore-based insurtech company Gigacover targets offering insurance services to Filipinos digitally and thus achieve the long-desired inclusivity in insurance cover.
Positioned to establish leadership in the market, Gigacover is also targeting more partnerships across different industries to offer 360 protections for Filipino workers and businesses.
In his interview with the Daily Tribune's digital show Usapang Business, Amerson Lin, co-founder and CEO of Gigacover, said their company wanted to be a catalyst in improving the insurance system of the country, particularly improving the stance of Filipinos covered by insurance.
"The reason why we chose the Philippine market is because we want to raise the insurance penetration levels of our region, as Gigacover builds digital insurance programs using our technology and understanding of the markets to partner with insurance. We build these programs and sell them to clients," he said.
He said clients can use their technology for their own needs or expand the ecosystem, as the Philippines is already ripe when it comes to innovation.
"Our team knows that Filipinos are very open to buying things online and very comfortable with online payments and e-commerce, and their mentality is very cultural towards healthcare and protection. It increased due to Covid-19, which brought awareness and education," according to Lin.
Low participation rate
"Despite increased awareness of insurance due to the impact of Covid-19, the current penetration rate in the country remains significantly low at about 3 percent. While more Filipinos are now educated about the need for protection, this also shows us that accessibility is still a gap that needs to be addressed," shared Lin. As we cement our leadership and diversify our services in the market, we will continue working with our partners to make insurance more accessible," he stressed
Gigacover targets uninsured Filipinos working in various industries.
"Our target markets are automotive, financial services, and tech companies. We offer them generally two areas — protecting your people and then protecting your operations. So, in terms of protecting people, we offer smaller-size HMOs (health maintenance organizations) or benefits. We offer them income protection. We offer personal accident medical expenses. On the operational side, this means if you're business is involved in logistics, we offer good transit or passive insurance. Or if you're more professional, we can help you with a professional indemnity of identity," Lin explained.
Asked how digital insurance raise insurance penetration in the Philippines like the United States and Japan can, Lin said insuretech companies cover more people and increase the coverage on each person.
"Reaching the right people can be of groups that are based on occupation, nurses, teachers, military, it can be groups like young mothers. So, we believe to increase the number of people who have insurance they want to buy, but how do we get them affordable and accessible, we can reach them via informal groups, Facebook groups, Telegram groups. Thanks to the digital systems and platforms we have, you know, that have been built over the last 10 years," according to Lin.
A year of growth
Gigacover marked its first year of operations in the Philippines with a 35 percent month-on-month growth in revenues coming from its services and digital insurance and healthcare products powered by its insurer and healthcare partners.
"Week on week, we receive inquiries mainly from the informal sector seeking more information about their policies, particularly the specific cases such policies cover. Conversations from our members have shown a higher level of financial maturity and literacy," said Chesca Figueroa, acting country manager of Gigacover in the Philippines, in an earlier statement.
"With the improvement of financial literacy, our next focus is to improve accessibility to these products and drive more inclusive and user-centric products and services."
The significant growth in the Philippines was driven by innovative products that addressed new market challenges in the country. In partnership with Etiqa Philippines, Gigacover introduced the Freelancer Earnings Protection (FLEP), the first income protection for freelancers in the market and Southeast Asia, in response to the rise of the gig economy, and the comprehensive Employee Benefits plan for organizations looking for competitively-priced healthcare benefits packages for their formal and informal workforce.
"As Etiqa PH aims to become a leading insurance player, our partnership with Gigacover gives us the ability to expand our accessibility to our customers. With our shared values and focus on technology, we can help more Filipinos achieve their goal toward financial security," shared Rico Bautista, President & CEO.
Gigacover also leveraged on the strong momentum of e-commerce growth in the country, beginning with Parcel Insurance which provides affordable coverage for a wide range of parcel types with digital claims processing. According to Lin, the company aims to further lay its claim in this sector by eyeing partnerships with more delivery service providers.
"Despite the opening of the economy earlier this year, Filipinos continue to rely on e-commerce which signals that the sector is here to stay even after the pandemic," shared Lin. "We aim to grow alongside this sector by helping shape the logistics industry behind it towards a sustainable and inclusive ecosystem where businesses, workers, and consumers are protected through tailored and cost-effective digital insurance products."
The insurtech firm already has existing partnerships with logistics platforms such as Angkas, QuadX and Pick-A-Roo, protecting over 15,000 riders to date.
