Insurer offers protection vs cyber threats
Filipinos are avid online users —spending close to 10 hours a day in 2020, when everyone was locked up in their homes due to the COVID-19 pandemic. While internet and social media use has been prevalent in the country for some time now, the pandemic and accompanying public health restrictions hastened the shift toward digital transactions and hybrid work setups.
This, however, is also a window of opportunity for malicious actors to take advantage of unsuspecting users. Cyber fraud schemes, such as phishing, smishing (SMS phishing) and vishing (voice phishing), were some of the most observed in the country in the fourth quarter of 2023, according to a TransUnion survey. In Asia, the Philippines has the highest rate of online shopping scams out of 11 countries in a 2023 report of the Cybercrime Investigation and Coordinating Center.
With many transactions and activities now being carried out online, cyber insurance is becoming an indispensable tool in the arsenal of businesses and even individuals aiming to protect themselves against attacks and preparing for a fallback if one indeed takes place.
Such is the motivation behind PhilFirst Cyber Insurance, one of the newest offerings of Philippines First Insurance Co. Inc. (PhilFirst). This protection product, one of the first in the country geared toward the public, covers identity theft, electronic fund transfer fraud and online retail scams, with round-the-clock assistance that can detect attacks and guide clients on what to do, such as gathering necessary documentation.
The product has been in the pipeline since 2017, says PhilFirst assistant vice president and head of marketing Luis Cebrero Jr., with the company seeing increased demand during the pandemic. “With the rise in online transactions, online scams and hacking have become more prevalent, which have resulted [in] loss of money, identity theft, cyberbullying and other similar cybercrimes,” he tells the Inquirer in an email interview.
The premium is flexible based on the insurance amount required by the insured, with the standard package having a P25,000 limit each for identity theft, online retail fraud and electronic fund transfer fraud. With a premium of as low as P480 a year, Cebrero says that PhilFirst Cyber Insurance is for individuals who want to be protected while surfing, shopping and working online.
“What’s nice about the product is that there is minimal to no underwriting needed. Anyone, regardless of age or occupation, may avail of this product,” he adds.
PhilFirst partnered with Cyberscout, a multinational company that provides “concierge cyber services and support,” as its adjuster of sorts. Those insured would call Cyberscout in case of a suspected cyberattack, where they would be attended to by specialists who would conduct an investigation and serve as liaisons with third parties. If there is a financial loss, the company will inform PhilFirst for the payment.
‘Familiar risks’
Cebrero says that the PhilFirst Cyber Insurance will keep up with cyber threats as they become more sophisticated by the day. The company, he explains, chose to focus first on identity theft, online retail fraud and electronic fund transfer fraud as the market learns about the product.
“[These three] were prioritized because these are familiar risks to the public and easy to understand,” according to Cebrero. “We will later introduce other coverage, such as restoration costs, cyber liability and cyber extortion, when the market has a better appreciation of cyber insurance.”
As more Filipinos are seen to spend more time online in the coming years, PhilFirst believes it is more important for the public to explore products and services that can help them in times of attacks. “This only shows how exposed we are to cybercrimes and, with cyber threats becoming more sophisticated, it is no longer a question of ‘if’ but ‘when.’ It is important to be prepared not only for the possible financial loss but, more importantly, guidance on necessary steps to be taken,” says Cebrero.
So far, the company is introducing the product to the public, explaining the importance of the 24/7 assistance and the different types of coverage. Cebrero notes that most of their clients are Baby Boomers and Gen Xers. “We firmly believe that the acceptance of the market will continue to grow. After all, who doesn’t know anyone who has been hacked before?”
Travel insurance debut
Meanwhile, PhilFirst also introduced travel insurance as it aims to cater to the growing number of Filipino travelers. The World Travel and Tourism Council said in August last year that it expects 2024 to be a “record-breaking” year for the Philippines, with the travel sector’s contribution to the economy growing by 25 percent to more than P5.4 trillion.
These new nonlife insurance offerings from PhilFirst aim to protect Filipinos in the digital age and in an era of frequent traveling. “The Personal Cyber Insurance is our way of safeguarding the online lives of Filipinos, while our Travel Insurance aims to make their adventures worry-free, especially as travel becomes more accessible and integral to many Filipinos,” says PhilFirst president Jaeger Tanco in a statement.
“Celebrating 119 years is not just about looking back at our achievements … It’s about looking forward—adapting, innovating and meeting the ever-changing needs of our countrymen.”
