Philippines Insurance Faces Protection and Cyber Challenges

Leaders and policymakers in the Philippine insurance sector convened this week to discuss key structural challenges and emerging opportunities, highlighting a significant protection gap, low life insurance penetration, rising cyber threats, and the need for simpler, customer-centric products.

The Philippines currently faces a protection gap estimated at USD 400 billion, roughly equivalent to the country’s entire gross domestic product. Sanjay Chakrabarty, President and CEO of Pru Life UK, warned that bridging this gap is crucial for advancing financial resilience and wealth democratisation.

“With life insurance penetration at just 1.8% and medical inflation climbing at 14%, the underserved and lower-middle-class segments remain highly vulnerable to shocks that could erase a lifetime of savings in a single event,” Chakrabarty told attendees at the Asian Banking & Finance and Insurance Asia Summit – Philippines on 10 March.

Product Design and Customer Experience

Several executives stressed that while insurers often design products as modular building blocks, allowing customers to scale coverage over time, the actual experience for many Filipinos does not reflect this flexibility.

“Has anyone ever built a product for themselves when buying insurance?” asked Jose Eduardo Ang, Chief Product & Innovation Officer at Insular Life, highlighting the gap between product design and customer experience.

Industry experts emphasised that simpler, more transparent products are essential to expand coverage and improve accessibility. Arnolfo “Nol” de Leon, Chief Agency Officer at FWD Insurance, stressed that product development must remain customer-centric, while Anthony Louis Gunzon, Chief Marketing Officer of Malayan Insurance Co., Inc., highlighted affordability in the context of the “moment of truth”—when coverage is most needed.

Cybersecurity as a Primary Risk

Cyber threats remain the foremost risk for insurers worldwide. Alvin Dave Pusing, Director for Financial Services and Risk Consulting at PwC, described cybercrime as a persistent “banana skin” for the financial sector.

“Cybercrime has ranked as the top risk across Europe, Asia-Pacific, North America, and Africa since 2023,” Pusing explained, emphasising that robust governance and operational controls are vital for safeguarding both insurers and customers.

Building Trust and Financial Inclusion

Karen Jill Espineli, Chief Compliance Officer and General Counsel at AXA Philippines, noted that insurers have a unique opportunity to expand trust and financial inclusion by improving the identification and support of vulnerable customers. She cautioned against the “toxicity of success” and a tendency to defer planning, which can prevent firms from becoming truly future-ready.

Jonathan Juan “JJ” Moreno, incoming CEO and Country Head of Sun Life Philippines, argued that the industry must move beyond incremental digitisation toward decisive action. “The future is already here; the only variable is whether leaders are acting accordingly,” Moreno said.

Philippine Insurance at a Glance

The Philippine insurance industry faces both challenges and opportunities. Expanding coverage, simplifying products, addressing cyber threats, and focusing on vulnerable populations are central to building financial resilience. Industry leaders agree that decisive action, rather than delayed digitisation, is essential to ensure that the sector becomes more inclusive, reliable, and prepared for the future.