Igloo, an insurance technology company in Southeast Asia, believes that insurance products catered to micro, small, and medium enterprises (MSME) can support inclusive and sustainable economic growth and employment for the country.
To launch NegosyoCare, an insurance product specifically designed to protect MSMEs, Igloo partnered with GCash and Malayan Insurance.
“These businesses that make up nearly 40% of the GDP typically run on limited cash flow and limited financing and are most at risk from unforeseen events that disrupt operations,” said Mario Berta, country manager for the Philippines, Igloo.
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Available via GCash’s GInsure marketplace, NegosyoCare premiums start at P160 for one month coverage and up to P525 for one year coverage.
NegosyoCare is another addition to the growing line of Igloo products currently available in the GCash Insure marketplace. In 2021, the Igloo and GCash partnership launched the first Online Shopping Insurance in the market followed by Mobile Insurance products, Pet Insurance in 2022 and the GCash Travel Master with COVID-19 in January 2023.
NegosyoCare provides coverage for accidental deaths, total permanent disability due to accident, and disablement or dismemberment due to accident for up to P50,000. Benefits also include medical reimbursement for accidents for up to P5,000, fire cash assistance for P10,000 and coverage for burglary and housebreaking for P10,000.
Citing government statistics, Igloo said the Philippines is one of the countries where insurance penetration remains very low at 2% “due to the relatively low financial literacy rate and insurance premiums regarded as being expensive.”
According to Igloo, a recent report by the Philippine Insurance Commission showed that microinsurance premiums, both production and contributions, grew by 15.5% in the fourth quarter of 2022. The growth was attributed to “the increasing awareness of the public of the importance of having affordable insurance products.”
“Offering microinsurance options is important because it provides MSMEs an affordable way to protect themselves and their businesses,” Berta said. “The Philippines may score low on insurance penetration but they are scoring higher in microinsurance penetration, showing that if they have products that will cater to their needs and will not overburden them financially, they will consider it.”