Singapore-based insurance technology firm Gigacover which offers income protection insurance to the world’s gig workers has recently started to cover the Philippine informal sector for inclusive digital transformation.
Gigacover founder and president Amerson Lin said the company’s goal is to protect the underserved segments by offering customizable products and customer-centric services that address their challenges.
“By 2026, our goal is to protect over 1 million Filipinos and give them better financial stability through insurance. We want to protect their lives, children, health, gadgets and income-earning abilities by developing more relevant products and distributing them through communities to meet the current needs of the regular Filipino,” he said.
The Philippine informal sector is composed mostly of small businesses, self-employed individuals and freelancers who are usually shunned by insurance firms due to unstable earnings and lack of financial credibility.
Gigacover expanded to the Philippines in 2021 when the pandemic showed an opportunity for the firm to extend protection to the growing ‘gig’ economy workers.
“Our value proposition is simple—we have the technology to develop customizable digital insurance products that address the specific needs of the masses bundled with the services that enable a more seamless onboarding and integration of various insurance products,” Lin said.
Over the last two years, Giagcover noted the growth of the Philippines gig economy as the pandemic accelerated the use of app-based transportation and logistics services and increased number of freelance and non-regular employment opportunities.
This pivot in economic activities made the Philippines an attractive market for Gigacover to introduce its core products–income protection, health insurance and deductible reduction.
The Philippines is the first country outside Singapore to host Gigacover with partnerships across a number of insurance companies to penetrate the grassroots economy and the millions of workers employed by micro, small and medium enterprises.
Data from the Department of Trade and Industry show that 99.6 percent of businesses in the Philippines are MSMEs, most of which are not protected by insurance plans.
As part of Gigacover’s mission to protect the underserved segments, the firm can tailor-fit affordable insurance solutions to MSMEs, including micro-enterprises that are locally defined with one to nine employees.
“Unlike insurance offerings from traditional companies that are often expensive for this sector, we are able to develop products with our partners to focus on the primary needs of micro-enterprises to keep the premium range low and competitive,” Lin said.
Gigacover, through its insurance and healthcare partners, offers digital insurance plans to individuals and businesses in the Philippines with options for customization to make them more affordable and relevant to the specific needs of the customer.
With partners Etiqa Philippines and MAPFRE, Gigacover in the Philippines offers life insurance through GigaOne; GigaWork for income and parcel insurance; GigaHealth, the firm’s health insurance; GigaDrive, a motor excess reduction insurance; and, GigaBundle, an insurance bundle for businesses that includes essential care coverage, life and accident insurance, and earnings and income protection.
It is also in the process of exploring the co-creation of products focused on mental health and the agriculture sector.
Lin said the firm sees unlimited opportunities both in Singapore and the Philippines and is looking to expand partnerships across the transportation and logistics industry.
“Despite the current challenges faced by startup companies across Southeast Asia, our Singapore operations continue to be profitable with a 10 percent month-on-month growth rate and our Philippine operations continue to strengthen with a 35 percent, month-on-month growth rate,” Lin said.
Gigacover has protected over 150,000 gig economy workers across Southeast Asia and plans to further expand to cover the markets of Vietnam and Thailand.
“We want to pick markets that are ripe and suitable for our product and service offerings,” Lin said.
Backed by Vectr Ventures, Quest Venture Partners, M Venture Partners and Alto Partners, Gigacover is built to withstand the challenges of the startup community, he said.