The Truth About Retirement: What You Need to Know

Retirement is a chapter in life that many look forward to, yet few are truly prepared for. 

An online survey by Sun Life Asia across the Philippines, mainland China, Hong Kong SAR, Indonesia, Malaysia Singapore, and Vietnam conducted in July 2024 revealed that 21% of retirees in the Philippines had not planned their retirement expenses and close to half express regret over past financial decisions, with 73% saying they have not saved enough for retirement.

Today, many Filipinos live well into their seventies, and many may outlive their retirement savings, as the cost of living doubles approximately every eight to 10 years, according to the Bangko Sentral ng Pilipinas (BSP). Additionally, major illnesses that come with age can deplete years of hard-earned savings.

These realities highlight the urgent need to plan early. To guide Filipinos on this journey, Sun Life Grepa Financial, Inc. (SLGFI) recently hosted a webinar, “Pamana, Property, and Peace of Mind: Retirement and Asset Planning for Every Filipino.”

The session addressed common misconceptions that often prevent Filipinos from prioritizing retirement and estate planning:

1. “I’m too young to start.” 

One is never too young to start preparing for retirement. The key is time – starting early allows your savings and investments to grow through compounding, where earnings generate more earnings. Waiting too long could also lead to higher costs, as insurance premiums tend to increase with age.

2. “I don’t have assets to protect.”

Some believe estate planning is only for the rich. In truth, even modest savings, pensions, life insurance, or a small family home, are worth safeguarding. Retirement planning is about protecting what you’ve worked hard for to ensure your family’s security in the future.

3. “My children will take care of me in the future.”

It’s common for Filipino parents to assume their children will support them in their old age. However, by the time one retires, children often have families and responsibilities of their own. Depending solely on them can create financial and emotional burdens, which can lead to strained relationships in the family.

4. “I’ll plan later when I have more money.”

Accidents and emergencies can happen anytime. Planning for the future now gives families protection and peace of mind early on. Plus, one does not need a significant amount of money to start planning for retirement. Small steps such as creating an emergency fund, writing a will, or designating beneficiaries can already make a difference.

5. “Planning is too complicated and only for experts.”

While legal and financial terms may sound overwhelming, the first steps are simple: organize financial and legal documents, grow your savings, secure basic insurance, and communicate openly with family members to avoid disputes in the future. These actions provide ample protection for the retiree and their family without requiring expert knowledge.

Sun Life Grepa’s Commitment

Life insurance plays a vital role in retirement and estate planning because it provides instant liquidity that helps families handle estate taxes and legal fees without added financial strain. 

Recognizing this need, Sun Life Grepa offers these solutions that help Filipinos prepare for retirement and protect what matters most—their family and legacy:

Sun Grepa Secure Income: A life insurance product that offers guaranteed yearly payouts, offering a stable income stream during one's retirement years plus scheduled lump sum bonuses at advanced ages to support other needs.  

Sun Grepa Legacy: A protection and savings plan that helps preserve wealth and ensures a smooth transfer to loved ones through guaranteed benefits. It provides lifetime insurance coverage and annual cash benefits that can serve as extra income during retirement, while also securing funds to help heirs settle estate taxes.  

Sun Grepa Power Builder 1: A one-time payment plan that combines guaranteed life insurance protection with flexible investment options. It allows funds to grow faster with no upfront charges and comes with guaranteed acceptance. 

Retirement and asset planning may seem daunting, but with the right guidance, every Filipino can enjoy their golden years with independence, dignity, and comfort. 

For more information on retirement and estate planning solutions, talk to a Sun Life Grepa advisor or visit www.sunlifegrepa.com.

VUL Insurance: Your Shield and Your Tool for Financial Growth

MANILA, PH – October 2025 – In the world of financial planning, one solution that has sparked both interest and debate over the years is a Variable Unit-Linked (VUL) insurance plan. While it became well-known for offering life insurance with an investment component in one package, it has also garnered mixed feedback, often with negative reactions from Clients who felt their investments did not grow as expected.

 

“VUL has been misunderstood by many,” shares Ivan Corcuera, Head of Insurance Investments at Sun Life Investment Management and Trust Corporation. “It’s not a one-size-fits-all product, and it’s certainly not a shortcut to wealth. It’s a financial tool designed to protect first and grow second.”

 

A life insurance plan that combines lifelong protection and fund accumulation, VUL’s core purpose is to provide a substantial financial shield for a family when they need it most. The opportunity for growth, while a powerful and valuable feature, is a secondary benefit.

 

Understanding the Nature of VUL

 

To understand VUL, think of it as a single product with two distinct functions.

 

Its primary function is life insurance coverage, which provides a death benefit payout to beneficiaries upon the insured’s passing. This is the financial shield that ensures the family’s future is secure, covering essential needs like education, outstanding loans, and daily living costs.

 

Its secondary function is the investment component. A dedicated portion of the premiums paid is invested in expertly managed funds, offering the potential for the policyholder’s money to grow over time. This accumulating value, known as the fund value, can be accessed during the policyholder’s lifetime for future financial goals. This fund value is tied to the performance of the investment funds chosen, which means its value can potentially grow higher, but it can also decrease based on market movements. “The investment side of VUL is a long-term play,” says Corcuera. “It’s about building value gradually, aligned with your financial goals.”

 

Importantly, the fund value is not just for future financial goals – it also helps keep your policy active. A portion of the fund value is used to pay for the cost of insurance and any applicable charges. Corcuera explains, “This means that while the fund value offers the potential for growth, it also ensures that your life insurance protection remains in force. That’s why it’s important to monitor how your fund is performing and ensure that it’s aligned with your needs.”

 

How Your Premiums Work

 

When a premium is paid for a VUL policy, that amount is not simply merged into a single pool. First, a premium charge is deducted from it to cover distribution and administrative expenses, which gradually diminishes over time. After this deduction, the remaining amount is allocated to the policyholder’s chosen investment fund and converted into fund units based on the current Net Asset Value Per Unit (NAVPU). These units represent the investment component of your policy and are linked to the performance of the funds you select, which means their value can rise or fall depending on market conditions.

 

“The fund units serve a dual purpose,” explains Corcuera. “It’s a balancing act between protection and growth.” A portion of these units is deducted to pay for insurance and periodic charges, ensuring your policy remains active and your life insurance coverage intact. The remaining units continue to accumulate and determine your policy’s fund value, which can potentially grow over time. The fund value can be accessed during your lifetime for future financial goals, offering flexibility while maintaining the core purpose of protection.

 

The VUL Protection-First Mindset

 

It is important to view VUL as a protection-first insurance solution, not as a purely investment vehicle like a mutual fund or stock trading account. “The real strength of VUL lies in its ability to provide a guaranteed benefit to your loved ones,” Corcuera emphasizes. “Unlike a pure investment where beneficiaries only receive the value of accumulated savings, a VUL ensures that they receive a predetermined, substantial amount.”

 

Think of VUL not as a strategy for quick gains, but as a long-term commitment to secure your loved ones’ financial future. “VUL is your shield and your tool for financial growth,” Corcuera concludes. “But like any tool, it works best when used and understood correctly with clarity, commitment, and guidance.”

 

Learn more about VUL by visiting www.sunlife.co/VUL101 or talk to a Sun Life financial advisor today to find the VUL solution that matches your protection needs and long-term goals

Pru Life UK launches PRUWealth 10

For affluent and high-net-worth Filipinos who want their money to work as hard as they do, Pru Life UK has unveiled PRUWealth 10, a life insurance plan that combines guaranteed payouts, long-term coverage and flexible access to your plan’s cash value in one seamless solution. 

Designed for affluent and high-net-worth clients aged 55 to 65 who are looking to fund their next travel or a business idea, PRUWealth 10 is available for a limited time only. 

The solution offers a guaranteed 5% net annual cash payout for 10 years, a 100% return of premium at the end of the policy term, and life insurance coverage equivalent to up to 110% of the single premium paid.

“PRUWealth 10 is designed for discerning individuals seeking the best of both worlds—guaranteed income and protection,” said Garen Dee, Chief Product Officer of Pru Life UK. “Our high-net-worth clients value certainty and flexibility, and this product delivers exactly that.”

The plan requires a minimum single premium of Php 500,000 for clients aged 59 and below, and Php 3 million for those aged 60 to 70. It also provides access to cash values for loans, offering liquidity for emergencies or major expenses.

“With PRUWealth 10, Pru Life UK aims to meet the dual objectives of wealth accumulation and preservation for this specific segment of the country, reinforcing our role as a trusted partner in securing financial futures,” Dee added. 

To learn more about PRUWealth 10, visit www.prulifeuk.com.ph or follow Pru Life UK on Facebook. Please refer to the product terms and conditions or consult with a licensed Pru Life UK agent to ensure the product suits your needs. 

Sun Life Expands Collaboration with Go Negosyo to Empower Filipino MSMEs

MANILA, PH – September 2025 – Sun Life, the No. 1 life insurance company in the Philippines in terms of total premium income, has announced the expansion of its strategic collaboration with Go Negosyo, a non-profit organization that champions Filipino entrepreneurship, to further empower Micro, Small, and Medium Enterprises (MSMEs) across the country.

 

Building on the success of their initial tie-up, the expanded collaboration will bring free financial consultations to MSMEs through Go Negosyo’s 3M on Wheels events, a roving caravan that delivers mentorship, money, and market access directly to entrepreneurs. Sun Life financial advisors will be on-site to offer personalized financial planning and insurance guidance tailored to the unique needs of business owners.

 

Last year, the partnership made a significant impact with 25 3M on Wheels Caravans held nationwide, reaching thousands of MSMEs and providing them with access to financial education and mentorship. The overwhelming turnout and positive feedback from participants highlighted the importance of such initiatives in strengthening entrepreneurship in the Philippines.

 

The expanded tie-up also includes content collaborations such as financial literacy talks at Go Negosyo events and Coffee and Play sessions featuring Sun Life’s original board game, Play for Life: A Game of Choices, which is designed to teach financial concepts in a fun and engaging way.

 

“Our collaboration with Go Negosyo is a natural fit,” said Carla Gonzalez-Chong, Chief Client Experience and Marketing Officer of Sun Life Philippines. “We share a common vision of a nation where entrepreneurship thrives, and where every Filipino is given the opportunity to reach their full potential. As we celebrate our 130th year of service to the Filipinos, helping MSMEs secure their future is a priority for us because we believe that they are the backbone of our economy.”

 

Joey Concepcion, Founder of Go Negosyo, added: “Access to capital, along with financial literacy, will be crucial as we help MSMEs realize their role as drivers of sustainable and inclusive growth. Government cannot do it alone, and neither can the private sector. We must work together so that doors remain open for all Filipinos to realize their dreams of becoming successful entrepreneurs.

 

Through the expansion of this collaboration, Sun Life and Go Negosyo reaffirm their shared commitment to building a financially empowered and entrepreneur-driven Philippines – one MSME at a time.

 

To know more about Sun Life’s products and services for business owners, visit sunlife.co/entrepfinancialplan or talk to a Sun Life Financial Advisor today.

Giving Your Child the Future They Deserve

Raising a child has never been easy. In today’s economic climate, it’s especially challenging. With tuition fees and healthcare costs on the rise, Filipino families face financial pressures that make long-term planning for their children harder yet more urgent than ever.  

 

While many parents hope to give their children a better life, hope alone is no match to inflation, emergencies, and the rising cost of living. The question is no longer whether families should prepare for the future, but how soon they can begin. 

 

Here are five reasons why now is the right time to secure your child’s future: 

 

1. Inflation is eating into your child’s financial future. 

The country’s inflation rate increased to 1.5% in August 2025 from 0.9% the previous month, and factors such as increasing geopolitical conflicts and the changing regulatory landscape may drive the rate further upwards. Parents must be prepared to manage the impact of rising costs on their children’s future, including essentials like education, healthcare, and daily living expenses. 

 

What often gets overlooked is the compounding effect of inflation on long-term goals. What seems sufficient today may fall short in just a few years, which may leave children unprepared for the challenges that lie ahead. 

 

2. Delaying protection could mean higher insurance costs. 

 

Insurance premiums are rising alongside inflation. As life expectancy increases and healthcare costs soar, insurers adjust their rates accordingly. Moreover, medical underwriting becomes more stringent with age and health conditions. This means getting an insurance plan later can cost more than getting one now.  

 

Buying protection plans early, while the child is still young and healthy, not only ensures lower premiums but also guarantees coverage for health concerns that may develop later in life. It also buys time for policies to accumulate value. 

3. Education is getting more expensive every year. 

 

The cost of education continues to rise as schools implement new technology-related and miscellaneous fees as well as other charges. In 2024, private schools have petitioned for tuition increases ranging from 3% to 12% for the 2024-2025 academic year, according to the Coordinating Council of Private Educational Associations of the Philippines (COCOPEA). 

 

With education costs steadily rising, it is prudent for parents to start saving as early as now to ensure their children have access to quality schooling when the time comes. 

 

4. Emergencies can ruin even the best-laid plans. 

 

When emergencies hit, education funds are often the first to be diverted. A report by The Second Congressional Commission on Education (EDCOM 2) revealed a 39% national dropout rate in higher education, with financial constraints beyond tuition as the main reason. 

 

There is no telling when an emergency or tragedy will arrive. However, the one thing that families have control over is their children’s education fund. Having an educational plan in place, even a modest one, guarantees that a child’s schooling is taken care of no matter what happens. 

 

5. Early preparation gives peace of mind. 

 

For most parents, securing a child’s future goes beyond finances. It’s about having peace of mind that, come what may, their children will be protected and supported. Insurance offers that peace of mind. It’s a way of making sure that even in the face of illness, loss, or unexpected hardship, a child’s education and well-being will not be compromised. 

 

Ensuring Your Child’s Future 

 

At Sun Life Grepa, parents can choose from four life insurance plans to ensure their children’s education: 

 

Sun Grepa Power Builder 5 and 10: A short-paying life insurance plan that provides access to investment outlets, helping parents build a future source of income while providing guaranteed life protection to secure for their child’s future.  

Sun Grepa Secure Income: For parents who prefer guaranteed returns, this is a life insurance product that offers guaranteed yearly payouts, offering a stable income stream to support your child’s education or other future needs. 

Sun Grepa Elev8: A savings and insurance plan that grows with the child, offering increasing protection benefits and guaranteed cash payouts every two years starting in the eighth policy year. 

  

To know which insurance plan aligns with the future you want for your child, contact a Sun Life Grepa advisor,  visit www.sunlifegrepa.com, follow us on Facebook or email sunlifegrepa@sunlifegrepa.com. 

Sun Life Reinvents Frontline Client Contact Points to Elevate Client Experience

MANILA, PH – September 2025– Sun Life, the Philippines’ leading life insurer, has unveiled its newly transformed Client Service Centers and New Business Offices, marking a bold step forward in delivering exceptional Client experiences.

 

In a recent ribbon-cutting and blessing ceremony, Sun Life inaugurated its Client Service Center in ACE Building in Makati City. The revamped facility features state-of-the-art technology to support faster transactions and is set to introduce cashless operations soon. This underscores Sun Life’s commitment to innovation and convenience.

 

“The ACE Client Service Center was designed with our Clients at the heart of every detail,” said JJ Moreno, President of Sun Life of Canada (Philippines), Inc. “From the layout to the technology, every element is meant to make their experience smoother and more personal. We want every visit to feel like a step closer to reaching their financial goals, with the trusted Sun Life service they deserve.”

 

In a separate event, Sun Life also celebrated the launch of three New Business Offices located in Bonifacio Global City, Taguig – Cannonball, Joshua Tree, and Neem Tree. These offices now operate under a modified co-working space arrangement, fostering collaboration and efficiency among advisors and teams. The setup is designed to be space-optimized and conducive to modern business practices, with more New Business Offices expected to adopt this model in the coming months.

 

“We believe that by creating smarter, more collaborative workspaces, our advisors will be better equipped to deliver the kind of personalized, high-quality service that our Clients deserve,” shared Moreno. “This new environment fosters efficiency and innovation, allowing our advisors to focus on what matters most – helping our Clients achieve their financial goals with confidence.”

 

As part of its ongoing commitment to excellent Client service, Sun Life continues to enhance its frontline contact points by transforming traditional offices into modern, tech-enabled spaces. These efforts ensure that every touchpoint is designed to be more responsive and more aligned with the evolving needs of their Clients.

 

To learn more about Sun Life Philippines, visit www.sunlife.com.ph. Stay updated by following Sun Life Philippines on Facebook, Instagram, and TikTok.

Allianz PNB Life Empowers Future Leaders Through Financial Education and Mentorship

Allianz PNB Life continues to strengthen its commitment to youth empowerment through the global #YouthCan! Program, in partnership with SOS Children’s Villages Pilipinas.

Through workplace visits, career coaching, and financial literacy sessions, Allianz mentors help young people gain practical experience, develop essential life skills, and prepare for future careers. These engagements aim to instill confidence and a sense of independence among the youth—qualities that are vital as they take steps toward building their future.

For Allianz, this initiative goes beyond corporate social responsibility. It reflects the company’s core belief that financial security and personal growth go hand-in-hand. By sharing knowledge on financial concepts, savings, debt management, and the value of protection through insurance, Allianz is equipping young people with tools they can carry throughout life.

“As a company, we are deeply invested in creating a positive impact on society. Programs like #YouthCan! allow us to extend our mission of securing people’s lives, not only through our products, but by actively preparing the next generation for success,” said Aileen Dionisio, Head of Sustainability of Allianz PNB Life.

By combining financial education with career development, Allianz PNB Life reaffirms its role as a trusted partner in shaping a confident tomorrow for the youth and the communities it serves.

Pru Life UK Strengthens Its Promise of Protection with “The Power of Two” Solutions

In a time when uncertainty is increasingly part of everyday life, Pru Life UK is taking another bold step to further empower Filipinos with guarantees they can count on.

At its latest launch, a first-of-its-kind curated culinary journey at Electric Garden, Bonifacio Global City, aptly themed The Power of Two: Count on Guaranteed Income and Protection with PRU, Pru Life UK introduced to market two powerful solutions—PRUSteady Income and PRUWealth 10—designed to provide steady payouts and lasting protection to help Filipinos plan, grow, and secure their future with confidence.

“Life is about the meaningful moments—big and small,” said Garen Dee, Chief Product Officer of Pru Life UK. “And no matter what every day brings, we want Filipinos to know they can count on PRU. With these two products, we give them the tools to embrace every chapter of life while ensuring that their financial plans are backed by guarantees.”

Pru Life UK aims to make financial planning simpler, accessible, and more empowering for every Filipino through its reliable solutions. By combining guaranteed payouts with reliable protection, the company addresses the growing need for stability amid life’s uncertainties. These reliable solutions were thoughtfully designed to cater to different priorities—whether it is securing steady cash flows, preserving wealth, or preparing for future milestones—helping customers take control of their financial journey with confidence.

PRUSteady Income is a 20-year endowment plan for individuals who value predictable income while ensuring strong protection for the future. It provides 10% guaranteed annual cash payouts from the 11th to the 20th policy year, a 100% maturity benefit at the end of the term, and up to 200% life insurance coverage. It delivers financial stability without sacrificing long-term growth—ideal for parents and professionals preparing for major milestones.

Targeted for affluent clients, PRUWealth 10 offers a balance of growth, preservation, and protection. Available only for a limited time, this endowment plan provides a guaranteed 5% net annual cash payout for 10 years, a 100% full premium back upon maturity, and 110% life insurance coverage based on single premium paid. Beyond these guarantees, the plan builds cash value over time, allowing flexibility to access funds when needed.

Backed by Prudential plc’s over 175 years of global legacy, and with more than two decades serving Filipinos, Pru Life UK continues to stand as the market leader in new business premiums as of H1 2025 and serves over 930,000 individual policyholders nationwide. 

“With this latest launch, we reinforce our mission to empower Filipinos to live fully today and feel secure about tomorrow,” added Dee. “We promise to provide certainty in an uncertain world with customer-focused financial solutions that are built on guarantees. Whatever your stage in life—earning, growing, or preserving—Pru Life UK has a solution that fits.”

For more information on PRUSteady Income and PRUWealth 10, visit www.prulifeuk.com.ph or follow Pru Life UK on Facebook. Product terms and conditions apply

Sun Life Tops Philippine Life Insurance Industry for the Second Quarter of 2025

MANILA, PH – August 2025 – Sun Life of Canada (Philippines), Inc., the country’s first and longest standing life insurance provider marking its 130th anniversary this year, has secured the number one spot in the industry for the second quarter of 2025, with a total premium income amounting to PHP 28.9 billion.

 

This achievement reflects Sun Life’s exceptional performance and its unwavering commitment to delivering quality service and Client experience. It underscores the company’s dedication to its Clients, commitment to excellence, and the collective efforts of the agency force and head office – solidifying its position as a leader in the life insurance sector.

 

“Amidst economic uncertainty and technological disruption, Sun Life remains focused on what matters most – our Clients,” said Benedict Sison, CEO and Country Head of Sun Life Philippines. “We are committed to being their Partner for Life, always prioritizing their needs, delivering innovative solutions, and cultivating a culture of excellence, integrity, and care.”

 

This achievement comes on the heels of Sun Life’s back-to-back wins at the Insurance Asia Awards, where its product, Sun Life Secure Income, was recognized with the Product Innovation of the Year Award, and at the HR Excellence Awards, where it was bestowed the Gold Award for Excellence in Innovation.

 

“All these show that being Client-centric will always lead us to our best work,” Sison said. “We are grateful to our Clients for the support and inspiration and look forward to our continued journey together for years to come.”

 

To learn more about Sun Life Philippines, visit www.sunlife.com.ph. Stay updated by following Sun Life Philippines on Facebook, Instagram, and TikTok

A Practical Guide to Managing Your Finances During Ghost Month

MANILA, PH – August 2025– Ghost Month, or the seventh lunar month, is a time of deep-rooted traditions and beliefs in the Philippines. It is believed that this is the time when the gates of the underworld are open, and spirits roam the Earth. While it is a period for honoring ancestors and exercising caution in life, it is also a time when many people pause major financial decisions.

 

However, a temporary slowdown in activities does not mean your financial progress has to stop. Sun Life believes that Ghost Month can be an opportunity to reset and strategize. Instead of seeing it as a time of bad luck or misfortune, consider it a period for thoughtful financial planning and preparedness.

 

Here are some tips on how to manage and navigate your finances during Ghost Month.

 

1. Avoid impulsive, big-ticket purchases.

The most well-known financial superstition of Ghost Month is to avoid buying big-ticket items like a new car, a house, or even starting a major home renovation. From a practical standpoint, this is a great rule to follow. Use this month as a chance to pause and reflect on your purchasing habits. Ask yourself: Is this a “want” or a “need”? This period of non-spending can help you save money and re-evaluate your long-term financial goals.

 

2. Focus on financial housekeeping.

With fewer major transactions and business ventures, Ghost Month is the perfect time for financial housekeeping. You can use this period to review your budget and go through your spending habits over the last few months to see where you can cut back. You can also take this time to sort through your bank statements, insurance policies, and investment paperwork. It is very helpful to have a clear and organized financial portfolio.

 

3. Build your emergency fund.

An emergency fund is your safety net against life’s uncertainties. If you do not have one yet, now is the time to start. Set a goal to save at least three to six months’ worth of living expenses. This will offer a sense of security that no superstition can shake.

 

4. Study your investment options.

While you may be hesitant to make a big investment during Ghost Month, this is the perfect time to explore your options. You can use this period to learn more about the different ways you can grow your money, such as Unit Investment Trust Funds (UITFs) or mutual funds. This is a time for research and education, not necessarily for making a move.

 

5. Plan for future financial goals.

Think of Ghost Month as a quiet break before a busy and productive fourth quarter. Instead of making major moves, use this time to plan for them. You can meet with a financial advisor from Sun Life so they can help you create a long-term plan based on your personal goals.

 

Ghost Month is a reminder that while some things are beyond our control, we can always prepare for the future. Just as you take precautions during this period, you can also take proactive steps to secure your financial well-being. Sun Life can provide you with the tools, personalized advice, and financial security to face life’s challenges, year-round. This Ghost Month, focus on what you can control in your financial future, and let Sun Life help you build a brighter one.

 

To learn more about Sun Life, visit www.sunlife.com.ph. Stay updated by following Sun Life Philippines on Facebook, Instagram, and TikTok.

Through Its New Partnerships with Consumer Finance Platforms, Igloo Extends Access to Insurance to the Underbanked

Manila, Philippines, April 5, 2024 – As part of its commitment to advancing financial inclusion and providing insurance for all, regional insurtech Igloo has partnered with consumer finance platforms in the Philippines to offer gadget protection products to shoppers. Igloo aims to extend access to insurance products and streamline the process of protecting items purchased through digital loans or alternative financing, whether online or in-store, providing consumers with a more accessible and convenient means to secure their purchases effectively.

“While the Philippines has made notable strides in financial inclusion, a considerable portion of the population remains unbanked. This translates to the inability to establish a credit history, which is essential for accessing financial products such as credit cards and loans,” said Roberto Vea, Commercial Lead at Igloo Philippines. “This is why the consumer lending industry has risen by leaps and bounds–it caters to the needs of the unbanked population by providing alternative financial solutions such as digital loans that do not rely on traditional banking infrastructure."

Lower barriers to entry, competitive interest rates, and simplified application processes have facilitated Filipinos' access to crucial loan products, driving the popularity of installment financing and buy-now-pay-later (BNPL) schemes. BNPL, in particular, is forecasted to reach US$2.29 billion by 2024. Many of these loans are facilitated in physical retail outlets, offering consumers the flexibility to make purchases and arrange financing conveniently in-store.

"At Igloo, we firmly believe in being where we can impact consumers most. That’s why we partnered with leading digital lending companies Skyro and Salmon alongside Etiqa to develop a product designed to protect installment purchases and ensure accessibility wherever our customers are,” Vea explained. “Now, they can protect their purchases wherever they buy it–whether through online merchants or offline stores, we’re giving them the peace of mind they deserve.”

In partnership with Etiqa, Igloo has introduced innovative products like Gadget Protection, Loan Protect with Skyro, and Loan Protect with Salmon. Soon, Salmon, Etiqa, and Igloo will also launch Accidental Damage and/or Liquid Damage, along with Extended Warranty products. These offerings provide comprehensive protection for customers' purchases through consumer finance platforms.

These products provide extensive coverage for device repairs, replacements, and loan repayments in the event of unexpected incidents that impact the customer. These protection products are available in top mobile and appliance stores nationwide.

The process is simple: when a customer purchases a device, the insurance product is seamlessly integrated into the client's loan amount. This integration ensures that premium payments are effortless, hassle-free, and budget-friendly. 

Once the policy is active, Gadget Protection will step in if the consumer faces device issues requiring repairs or replacements. The policy covers the costs associated with these services, providing the customer with peace of mind and financial security.

“We are committed to our mission of providing ‘insurance for all’ and that includes safeguarding purchases made by an underserved sector because it offers a layer of financial protection that they may not otherwise have access to. We will continue to work with our partners to develop products that cater to the diverse needs of the people we serve,” Vea ended.

Learn more about Igloo’s products by visiting iglooinsure.com

The Changing Face of Insurance: How Tailored Microinsurance Products are Key to Relevance and Adoption in the Philippines

MANILA, Philippines, March 18, 2024 – For most people, understanding insurance boils down to the four most common types: life, health, auto, and long-term disability. While awareness of insurance importance is increasing, the aforementioned traditional insurance products are failing to resonate with many people due to various reasons including affordability, accessibility, and relevance. These factors have largely contributed to the low insurance penetration in the Philippines, which stands at 1.68% as of September 2023.

This is where microinsurance is changing the game as insurtechs and insurance companies have introduced personalized microinsurance products that cater directly to the unique lifestyles and needs of Filipinos as they go through various stages of their lives. As an insurtech, Igloo and its partners have been instrumental in facilitating a wide array of microinsurance products that safeguard the unique needs of digital natives and underserved sectors. These products run the gamut from travel insurance, to electronics protection, e-commerce purchase protection, and even protection for the gamers’ health.

“While traditional insurance products may come with high premiums and broad coverage, microinsurance products are designed to provide targeted protection against specific risks that are relevant to our daily lives. By offering affordable products that address immediate needs, microinsurance can serve as the gateway to broader insurance protection and may be key to boosting insurance penetration,” said Roberto Vea, Commercial Lead at Igloo Philippines. 

Among the most popular insurance products Igloo PH and its partners facilitated are Gadget Protection and Online Shopping Protection. In 2023, Gadget Protection sold 10.3 million policies while Online Shopping Protection sold 1.98 million policies highlighting strong customer demand for coverage against electronic device damages and online purchase risks.

“Microinsurance empowers individuals to protect themselves against risks they face today, whether it's safeguarding their electronics from liquid damage or ensuring affordable coverage for spontaneous travel adventures. At Igloo, we believe it’s important for insurers and insurtechs like ourselves to continuously develop relevant products and make sense for our customers,” Mario added.

As of September 2023, microinsurance premiums in the Philippines have increased by 19.6% to P10.16 billion, and over 56 million Filipinos are now insured under microinsurance policies. 

“The growth of the microinsurance industry underscores how the approach to insurance awareness is no longer one size fits all–it must evolve alongside our digital-first lifestyles, safeguarding our ever-expanding virtual assets and providing peace of mind in the face of modern risks,” Vea explained. “This also means ensuring that the products are where our consumers are–online, thus making sure that the entire buyer’s journey from consideration, to purchase, and claims must be easy, accessible, and uncomplicated.”

According to a recent study conducted by Manulife, 41% of Gen Z individuals (aged 18-24 years old, according to McKinsey) plan to purchase insurance online in the next 12 months. Furthermore, the study found that 33% of millennials (aged 25-44 years old) have already bought insurance online. This indicates that younger generations are increasingly preferring and adopting online channels for purchasing insurance.

This is where the availability of embedded insurance was able to expand the channels of distribution, providing consumers with a convenient way to discover, evaluate, and purchase products in just a few clicks. Igloo does this through partnerships with major e-commerce platforms like Lazada and Shopee, leading payment platforms such as DANA in Indonesia and GCash in the Philippines, and retail chains like Circle K in Vietnam.

“As Igloo continues to play a vital role in making microinsurance accessible to millions of Filipinos, we remain committed to prioritizing products that not only raise insurance awareness and adoption but are also relevant, innovative, and customer-centric,” Vea ended.

Learn more about how Igloo’s tailored microinsurance solutions by visiting iglooinsure.com.

2024 Trends Transforming Southeast Asia's Insurance Landscape

MANILA, Philippines, February 13, 2024—Southeast Asia's insurance sector is undergoing a massive transformation to keep up with evolving market demands and maintain competitiveness. In the Philippines, where insurance penetration is at a mere 1.68%, the industry is grappling with persistent challenges such as complexities, outdated systems, and regulatory hurdles. However, amidst these obstacles, the industry is forging ahead with innovation and modernization with insurtechs emerging as crucial drivers of this change, fueling efficiency enhancements and elevating customer experiences. 

Insurtechs have facilitated the seamless integration of insurance into the purchase journey across diverse platforms, including e-commerce, fintech, and logistics. They have also made it possible for brick-and-mortar establishments such as convenience stores to become viable distribution channels to enhance accessibility and awareness of insurance products, bringing offline consumers online. Insurtech firms likewise empower insurers to create personalized products, meeting the unique needs of underserved sectors and effectively managing emerging risks in digital consumers' lifestyles today–these include pet insurance, travel insurance, electronic and mobile phone protection, and even micro, small, and medium business insurance.

Amidst the industry's continuous transformation, insurtech Igloo identifies key trends poised to persist in 2024, further elevating efficiency throughout the insurance value chain and propelling the ongoing momentum of embedded insurance and personalization.

AI-Powered Data Analytics for Enhanced Risk Assessment

Artificial Intelligence (AI) is fast becoming the cornerstone of the insurance sector, revolutionizing the way companies analyze data and assess risks. This year, we can expect insurers to increasingly leverage AI for advanced data analytics, allowing them to gain deeper insights into customer behavior, preferences, and emerging risks. By harnessing the power of AI, insurers can enhance their risk assessment models, leading to more accurate pricing and better management of uncertainties in the ever-changing market.

Blockchain for smoother claims processing

Blockchain's sustained influence in insurance underscores its pivotal role in streamlining claims processing. The decentralized and transparent nature of blockchain ensures efficient, fraud-resistant transactions, expediting claims settlement, and reducing administrative costs. This enduring trend continues revolutionizing the insurance landscape by enhancing accuracy, trust, and operational efficiency.

Zero-Code Platforms for Swift Product Launch

The adoption of zero-code platforms is set to streamline and accelerate the launch of new insurance products across various channels. These platforms empower insurance companies to develop, modify, and deploy applications without extensive coding, significantly reducing the time and resources required for product development. This rapid deployment capability ensures that insurers can respond swiftly to market demands, offering a diverse range of products tailored to the evolving needs of consumers.

Digital Empowerment of Agents to Boost Productivity

As the industry becomes more digital, insurance agents are also set to benefit from advanced technologies that enhance their productivity and improve customer interactions. In 2024, insurers are expected to invest in empowering their agents with digital tools and resources, facilitating seamless communication, quicker policy issuance, and personalized customer experiences. The digitalization of agents also contributes to an overall positive customer journey, fostering loyalty and satisfaction.

Securing Against Climate Change Through Insurance

Climate insurance has emerged in response to the increasing frequency and intensity of climate-related events. As businesses, individuals, and governments grapple with the impacts of climate change, insurance has become a critical tool for managing the financial losses resulting from it such as damage to agriculture, infrastructure, and personal property. This trend exemplifies a proactive approach to mitigating economic losses, aligning with the shift towards sustainability and resilience in the face of climate uncertainties. 

Igloo believes the rising demand for personalized insurance in our region is prompting insurers and embedded insurance ventures to embrace the latest tech trends. By seamlessly incorporating these innovations, the leading regional insurtech firm is not just keeping up; it's staying one step ahead, shaping the future of insurance for Southeast Asian communities. Its commitment is to remain at the forefront of industry shifts, ensuring its approach aligns seamlessly with the evolving needs of its valued customers.