(Image is used for illustration purposes only from THEPHILBIZNEWS)
The insurance penetration in the Philippines remains low, hovering at just two percent compared to its neighbors Indonesia and Singapore due to a preconceived misconception that insurance is not necessary and/or unaffordable. Moreover, limited access to financial services, influenced by factors such as distance, and complex documentation, contributes to a disinterested market.
In a bid to bridge this gap, Kickstart Ventures, a corporate venture capital (CVC) firm wholly-owned by Globe Telecom, driven by its positive social impact mission, leads seed funding into RuralNet, the Philippines’ first fully digital & API-driven microinsurance distribution platform that helps cover the vast majority of uninsured Filipinos. It operates as a cutting-edge digital middleware platform that helps partner financial institutions deliver in-person insurance better and faster, starting from enrollment all the way to processing claims.
The funding round also drew participation from a slew of investors such as Gentree, Foxmont, and Kaya Founders. Overall, RuralNet received a total of $2.15M between all investors.
“RuralNet genuinely understands their customers’ needs and ensures that their insurance coverage is aligned with the needs and realities of their lives. Together, we strive to help provide Filipino’s the financial security they deserve,” said Minette Navarette, President and Co-Founder of Kickstart Ventures.
With the backing of Kickstart Ventures, RuralNet is now poised for expansion. This year, Ruralnet is broadening CashKo, RuralNet’s brokerage that connects various financial and retail partner institutions nationwide, by extending insurance solutions to Filipinos catering to Small and Midsized Enterprises (SMEs). Justin Arcenas, founder of the Cebu-based insurtech-startup hopes to empower local business owners and provide them with the financial security they and their employees deserve.
In contrast to the prevailing notion that digital insurance streamlines processes due to its accessibility, efficiency, and convenience, RuralNet recognizes the significance of a human touch for added inclusivity. Arcenas emphasized, “When our average customer is a 40-year-old married woman with three children but no smartphone, online interfacing doesn’t work.”
As a result, RuralNet integrated digital technology at the backend while providing face-to-face services to clients from enrollment to claims processing. This ensures that they are able to track everything in real-time, making it easier for their offline partners to serve clients who are physically present.
To date, RuralNet has partnered with 25 financial institutions to help deliver microinsurance to about 2 million Filipinos. With their expansion of “CashKo” to provide insurance coverage for SMEs, RuralNet targets to cover 200,000 to 300,000 employees within five years