The new loan protection insurance product from Senangdali and GoodTech is specifically designed for rural banks in the Philippines.
SenangDali, a subsidiary of Malaysian Insure-Tech Senang.io, has partnered with Philippine fintech firm GoodTech to develop a customized loan protection insurance product that integrates seamlessly with the local banks’ existing offerings.
Loan protection insurance covers debt payments on select loans if the insured person loses their ability to pay due to a specified event. Eligible coverage incidents may include disability or illness, unemployment, or another hazard, depending on the policy. Products like these support policyholders in dire times.
The new insurance product was designed for rural banks in the Philippines and is underwritten by local insurance providers. According to the statement, the Philippines hosts more than 350 rural banks, which empower local communities with financial services.
Unlike many other countries, the Philippines is not a single land mass. It consists of 7,641 islands. Almost 50% of Filipinos live in rural areas. Despite being a vital part of the economy, they are largely unbanked. Enhancing financial inclusion for rural areas and other underserved and remote locations is a critical objective for Filipino banks.
In addition to the loan protection insurance, the two partners are planning to introduce a motor aggregator platform and personal accident insurance, diversifying the range of services available to rural banks.
Senang.io expects to significantly enhance the accessibility and affordability of financial services in rural areas of the Philippines. Through more secure and inclusive financial services, the two firms aim to foster greater economic stability and growth within the local communities.
The collaboration with GoodTech is enabled via the MalaysiaDigital Economy Corporation (MDEC) and its platform DEX Connex Philippines 2024. MDEC DEX Connex programme in the Philippines fosters business partnerships and MOUs, while targeting RM150 million in digital export opportunities. It is supposed to strengthen Malaysia-Philippines tech collaboration and encourage innovation and competitiveness in the tech sectors of both countries.
Earlier, we reported that another insurtech discovermarket started its operations in the Philippines by partnering with Globe Telecom to launch its embedded Personal Cyber Insurance product.
