New technology needed to widen insurance coverage

MANILA, Philippines — The insurance industry should tap new technologies to ensure that more Filipinos get access to needed protection and coverage.

Insurance Commission chief Reynaldo Regalado called on life and non-life insurance firms to take advantage of new technologies to make coverage more accessible to Filipino consumers.

Regalado said the insurance sector plays an important role in the country’s economic growth amid risks brought by climate change.

“As a proven risk and loss transfer mechanism, insurance plays a critical role in improving our resilience against extreme weather events and other natural calamities that are worsening due to climate change,” Regalado said.

In the Philippines, natural disasters continue to take a toll on the economy every year with billions of pesos in damage to properties and livelihood.

Unfortunately, insurance coverage in the country remains low, both for life and non-life, when compared to other neighboring economies.

Currently, insurance penetration remains at around two percent of gross domestic product.

As the government pushes for digitalization and financial inclusion, Regalado said the industry must come up with ways to tap new technologies to significantly increase insurance coverage in the country.

“We need to provide wider and more inclusive insurance coverage, taking advantage of new technologies to make financial products more accessible, innovative and efficient,” Regalado said.