MOBILE and internet usage is reaching new heights in the Philippines. By early 2024, datareportal.com reported 117.4 million active cellular connections, almost matching the entire population. This digital growth comes with a downside: a significant rise in cybercrimes. In the first quarter of 2024, the PNP Anti-Cybercrime Group reported 4,469 cybercrimes, a staggering 21.84 percent increase from the previous year.
While government agencies and organizations work hard to combat these crimes, individuals must also take proactive steps to protect themselves. One effective preventive measure is insurance, which is now more accessible through embedded options. Integrated into everyday platforms like e-commerce sites, hotel booking websites and e-wallet apps, embedded insurance makes it convenient for users to obtain the coverage they need to protect against cyber threats.
In an email interview, Patrick Bühler, chief executive and founder of discovermarket, an international insurtech firm, provided more insights into these issues:
Impact of rising cybercrimes, role of insurance
Bühler says, “Despite efforts by government agencies to find and prosecute cybercriminals, the Philippines still lacks adequate capabilities to effectively combat cybercrime. As a result, cybercrimes cause financial losses and especially emotional stress for many Filipinos and can even disrupt services on a larger scale.”
Cyber insurance helps mitigate these impacts by covering financial losses from crimes like credit card fraud and online shopping fraud. It provides professional recovery services to restore security and peace of mind. Bühler cites an example: “If someone enters their credit card information on a fake website via a phishing email, their financial losses from this fraud can be claimed through cyber insurance and professional services to ensure that the leaked credentials do not affect any other data.”
Concept, benefits of embedded insurance
Bühler highlights how embedded insurance integrates insurance products directly into purchasing or using non-insurance products or services, such as e-commerce sites and e-wallet apps. This approach differs significantly from traditional insurance, which often involves lengthy processes and extensive documentation.
By embedding insurance into platforms Filipinos use daily, the protection journey becomes more convenient, accessible and customer-centric. Common types of embedded insurance include travel, logistics, device, auto and damage protection, which are affordable and have short policy terms. An example is the cyber insurance launched by discovermarket and telecom operator Globe, covering Globe’s Platinum customers against online identity theft, online shopping fraud and internet payment transaction fraud up to P100,000. This coverage also includes claims assistance services, demonstrating a commitment to customer care.
Vision, support for underserved communities
“discovermarket’s ambition is to close protection gaps and bring insurance to unreachable customer segments and underserved markets more easily and affordably,” Bühler explains. The tech-driven marketplace enables brokers, insurers and prevention providers to offer innovative embedded insurance solutions via trusted brands, ensuring protection where and when needed. Their marketplace-as-a-service platform functions as a one-stop shop for brands seeking digital insurance solutions. Brands can choose from various insurers and prevention providers to create customized insurance propositions, leveraging competition to keep costs low. This approach allows discovermarket to offer embedded insurance products at transaction costs as low as $0.01, improving accessibility for all.
Future of embedded insurance, industry trends
Based on the report at munichre.com, the embedded insurance market is expected to grow at a compound annual growth rate (CAGR) of 25 percent until 2030 globally, with the Asia-Pacific region leading the way. Discovermarket works with trusted brands and platform partners to launch innovative protection use cases, capturing uninsured opportunities and outperforming traditional institutions.
Bühler believes advanced technologies, particularly AI, will shape the future of embedded insurance. “This powerful tool is set to revolutionize the insurance experience, enabling a level of personalization that was previously unimaginable. AI will not only tailor the insurance experience to individual consumers, making their journey more seamless, but will also serve as a personal advisor, akin to an advanced chatbot, recommending insurance when it’s most needed. This level of personalization will make consumers feel understood and cared for in their insurance journey,” Bühler adds.
As digital assets like identity, cloud services, payments and social media become more integral to daily life, Bühler states that cyber insurance will become essential for both retail and corporate customers over the next 10-15 years. Despite changing protection needs, discovermarket’s role remains the same: staying at the heart of customers, working with brands and partners, and delivering the right protection at the right time.
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