UnionDigital Bank (UD) has partnered with Chubb Philippines to offer insurance products directly through its digital banking platform, as both companies seek to expand financial protection for Filipinos who remain uninsured or underinsured.
The partnership comes amid persistent gaps in insurance coverage across the country.
According to the latest Financial Inclusion Survey (FIS) conducted by the Bangko Sentral ng Pilipinas (BSP), nearly half, or 48%, of adult Filipinos do not have insurance coverage, leaving many households vulnerable to unexpected financial shocks.
By integrating insurance into its digital banking ecosystem, UnionDigital aims to make protection products more accessible to customers who may have limited exposure to traditional insurance channels.
“This partnership marks a pivotal step in our mission to bring insurance protection to millions of Filipinos,” said Danilo “Bong” Mojica II, President and CEO of UnionDigital Bank.
Embedded insurance comes to digital banking
IMAGE CREDIT: shutterstock.com
The collaboration introduces insurance products that are directly linked to customers’ banking activities, reflecting the growing adoption of embedded finance in the Philippines.
The first offering, Loan Protect Insurance, is automatically provided to eligible UnionDigital loan borrowers at no additional cost during the first three months after loan approval.
The product is designed to help borrowers manage outstanding loan obligations in the event of accidental death, permanent disability, temporary disability, or death due to illness. Depending on the claim, coverage can pay up to the original loan amount, helping settle the borrower’s remaining balance while allowing any excess proceeds to be released to beneficiaries.
Initially, the coverage will be available for loans of up to ₱30,000 with shorter repayment terms.
UnionDigital and Chubb also announced the upcoming launch of Kaya Protect Insurance, a personal accident insurance product that will be activated for customers who maintain at least ₱100 in their savings account.
The product will provide accidental death and personal accident coverage of up to ₱150,000, while encouraging customers to develop regular savings habits.
Closing the insurance protection gap
Photo shows (from left:) Vladimir Micic, Chief Lending Officer of UD; Danilo “Bong” Mojica II, PhD, President and CEO of UD; and Mari Rachelle Canta, Country President of Chubb, as the two companies partner to deliver accessible digital insurance protection to Filipinos nationwide.
The partnership highlights the growing role of digital platforms in expanding access to insurance products, particularly among underserved segments of the population.
While insurance penetration in the Philippines has improved in recent years, a substantial protection gap remains. Many Filipino households continue to rely on limited emergency savings to cope with medical emergencies, accidents, or the loss of income caused by unexpected events.
Industry estimates cited by UnionDigital show that an average emergency fund of around ₱50,000 may be insufficient to cover major illnesses, which can cost several hundred thousand pesos.
By embedding insurance into everyday banking products, financial institutions hope to reduce the friction traditionally associated with purchasing insurance and encourage wider adoption among first-time policyholders.
Mari Rachelle Canta, Country President of Chubb Philippines, said the partnership aligns with the insurer’s goal of making protection solutions more accessible and affordable.
“By partnering with UnionDigital, we look forward to leveraging our combined strengths to deliver customer-focused digital insurance solutions,” Canta said.
Digital finance meets financial protection
The partnership reflects a broader trend in financial services, where banks, fintech firms, and insurers are increasingly working together to integrate protection products into digital customer journeys.
For digital banks, embedded insurance provides an opportunity to deepen customer engagement while helping users build financial resilience beyond savings and credit products.
For consumers, the model offers a more seamless way to access insurance protection without navigating separate application processes or distribution channels.
As digital financial services continue to evolve, initiatives such as the UnionDigital-Chubb partnership could play a role in helping narrow the country’s insurance protection gap while advancing broader financial inclusion goals.
To know more, visit www.uniondigitalbank.io. You can also download the UD app now on the App Store, Play Store, or HUAWEI AppGallery by clicking here.
