For millions of Filipinos, a medical emergency doesn’t end when a patient leaves the hospital. The bills that follow can wipe out years of savings, forcing families to borrow money, sell assets, or abandon small businesses just to recover.
That is the problem Philippine insurtech company RuralNet says it is trying to address through CashKO, its microinsurance subsidiary, which has now expanded coverage to more than 6.1 million Filipinos across 81 provinces.
The company said its affordable insurance plans are designed primarily for underserved households that often have little or no financial protection against major life events. Instead of offering conventional insurance products, CashKO works with rural banks, cooperatives, and microfinance institutions to develop coverage that reflects the realities of the communities they serve.
The policies focus on helping families manage expenses related to serious illness, death, and funeral costs — financial burdens that frequently leave low-income households struggling long after a medical crisis has passed.
The expansion comes at a time when healthcare has become a growing concern for many Filipinos.
According to figures cited by the company, 67% of adult Filipinos now consider staying healthy and avoiding illness their biggest personal concern. Yet insurance penetration in the country remains at around 2%, leaving many families financially exposed when unexpected emergencies occur.
For workers in the informal sector, where incomes are often unpredictable, the loss of a family’s primary breadwinner can erase years of financial progress almost overnight.
Insurance built around local communities
Justin Arcenas, founder and chief executive officer of RuralNet
Rather than introducing a standard insurance product nationwide, CashKO said it develops its offerings together with local financial institutions that already understand the needs of their members and borrowers.
Justin Arcenas, founder and chief executive officer of RuralNet, said financial protection should not be reserved only for households that can afford traditional insurance.
“Financial protection should be within everyone’s reach. It should not be a luxury, but a necessity,” Arcenas said.
He added that the company’s approach allows insurance products to be adapted to the financial circumstances of different communities.
“Our microinsurance service is tailored to the unique needs of Filipino households, moving away from rigid, traditional insurance and instead co-designing ‘made-to-measure’ plans with local institutions. By leveraging technology, we are helping more Filipino families build genuine financial resilience and long-term peace of mind, so that losing a breadwinner doesn’t mean starting back at zero.”
Technology shortens claims processing
IMAGE CREDIT: CashKO
Behind the insurance products is RuralNet’s digital platform, which manages policy administration and claims processing for its partner institutions.
According to the company, the platform maintains a 97% claims approval rate while processing payouts 75% faster than the industry average.
For families dealing with medical emergencies or funeral expenses, receiving insurance proceeds sooner can make a significant difference. Faster payouts may reduce the need to take out high-interest emergency loans while waiting for financial assistance.
CashKO has expanded its distribution through more than 5,000 partner branches operated by rural banks, cooperatives, and microfinance institutions nationwide, allowing insurance to be offered alongside existing financial services.
A safety net during difficult times
Lolita Lugasan shares how CashKO helped her family after the sudden loss of her husband.
Among those who benefited from the program is market vendor Lolita Lugasan, whose husband died after a prolonged illness.
She said the insurance payout arrived only a few days after his death, when the family’s savings had already been depleted by medical expenses.
Instead of using the entire amount for immediate expenses, Lugasan said she was able to set aside part of the proceeds to keep her small business running, helping preserve the family’s source of income while coping with the loss.
Stories like hers illustrate the role microinsurance can play beyond providing financial assistance after a claim. For many low-income households, timely payouts can help prevent a temporary crisis from becoming a long-term setback.
With more than 6.1 million covered lives, CashKO has become one of the country’s larger providers of microinsurance.
As financial institutions continue looking for ways to extend protection to underserved communities, digital platforms such as RuralNet’s are increasingly being used to make insurance more accessible outside traditional distribution channels.
