Periods of high inflation challenge the financial security of people and businesses. Regionally, Southeast Asia’s inflation has slightly increased from December 2022 to January 2023. Meanwhile, the Philippines’ 8.6 percent inflation rate currently stands as the highest in Southeast Asia for February 2023. From a macro perspective, this weakens the growth of the nation’s economy.
From a micro perspective, Juan de la Cruz, living paycheck-to-paycheck, is battling higher prices for his basic living expenses. On top of that, he also needs to keep up with the increasing interest rates for his loans. These mounting circumstances eventually upset his appetite for other needs like insurance premiums, if he can even avail of such.
With no relief in sight for the consumers and the insurers alike, the latter need to be challenged to bring down their costs, if not modify their pricing strategies to reach more Juan de la Cruzes.
“Whether it was about their health, incomes, or properties, Filipinos have battled with different uncertainties in the last three years. This reality has further highlighted the need for insurers to take added measures to bring insurance closer to the average Filipino. This has been the industry’s mission since the beginning. As we join this thrust, we have made it a point to align with partners within and outside the industry who share our vision—to empower more Filipinos to achieve financial security, especially amid inflation, through digital solutions and technology,” said Noel Tordesillas, Head of E-Channel in Etiqa Philippines.
One payment option that has taken root among consumers recently is the Buy Now, Pay Later (BNPL) scheme. Now, consumers seeking to spread out the cost of big-ticket purchases can get their immediate needs and defer their payments to a later time without any interest. This business model is expected to grow globally by 14 percent yearly to $44 billion in 2027 from merely $18 billion in 2020.
Making this payment option possible for the first time in the insurance space is insurtech advocate Etiqa Philippines. Through a strategic partnership with UBX, the leading open finance platform, Etiqa now provides an accessible payment alternative to consumers through the “Insure now, Pay later” scheme.
In keeping with the company’s commitment to utilizing technology to promote a more seamless customer experience, the new scheme will leverage UBX’s fintech verticals: BUx’s end-to-end payment solutions platform and Splix’s transact-now-pay-later platform.
Guided by the same BNPL scheme, Etiqa policyholders can now take advantage of a more flexible payment option by settling their premiums on an installment basis. With or without credit cards, Etiqa members can now break their dues into smaller sums. Making payments even more convenient are the 60,000 payment channels of BUx that allow Etiqa’s customers to pay their premiums via online banking, e-wallets, or over-the-counter.
BUx provides businesses and individuals with a reliable and convenient payment management method. With BUx, you can break down your premiums into manageable installments, allowing you to ease the burden of rising costs. Moreover, BUx offers a wide range of payment channels, with over 60,000 options, including online banking, e-wallets, and over-the-counter transactions.
Take control of your finances and achieve financial security with BUx. Join the growing number of businesses benefiting from BUx and experience the ease and convenience it brings to your operations. Don’t let inflation hinder your growth. Embrace BUx today and empower your business with efficient payment solutions. Visit our website to learn more and start using BUx in your business.