Start-up helps address low insurance takeup

MANILA, Philippines — Start-up Saphron is helping address the low insurance penetration in the Philippines through a platform powered by artificial intelligence (AI).

The financial technology (fintech) start-up is one of five companies that received equity-free investment, technical and business mentorship under the “Fintech for Impact” program of ING Bank and United Nations Children’s Fund (UNICEF).

Latest data from the Insurance Commission showed insurance penetration or the share of premiums to gross domestic product (GDP) improved to 2.05 percent in the second quarter from a year-ago level of 1.58 percent.

The industry’s penetration rate hit a record 2.3 percent in the first quarter not due to the increase in Filipinos enrolling in private savings but because the country’s GDP shrank by 3.9 percent due to the impact of COVID.

Saphron, founded by solutions architect Francisco Reyes Jr. in 2019, hopes to close the gap through the platform called NAN.AI or nanay (mother) to enable microinsurance agents to collect accurate and efficient data and make insurance radically accessible.

Sales slowed since the start of the global health crisis but Saphron’s solutions made it easier for agents to safely enroll their clients without the need for physical visits.

Even with restrictions in place, NAN.AI helped agents process a total of more than 400,000, with total insurance coverage worth $1.3 million.

Since the project started, there have been 641 “nanay” agents based in Metro Manila, Laguna, Batangas, Rizal, as well as in Cebu, Bohol, Bulacan, Pampanga, and Zambales.

For one, Josie Soriano, who used to run a small bakery before she lost her husband and became a sole breadwinner, would spend three hours just to encode the data she collected from clients in the rural areas.

With the NAN.AI platform, microinsurance agents including Soriano were able to collect accurate and efficient data, making insurance radically accessible.

“NAN.AI is easier, faster, and very accessible since we always have our cellphones. It’s more convenient and minimizes the possibility of insurance packages lapsing (since I’m able to monitor my clients’ policies),” Soriano said.

Saphron continues to improve the capabilities of the platform such as its optical character recognition application to scan and digitize handwritten forms, and an after-sales chatbot.

It also tackled feedback and accessibility challenges by updating the NAN.AI app so microinsurance agents need not be online all the time. The app can work even offline and can be synchronized later, eliminating the need for constant internet connection.

It partnered with CARD Pioneer Microinsurance Inc. (CPMI) to enable agents to register clients with just a few easy clicks on their smartphone.

In addition to working with CPMI, Saphron is also expanding its client base to other micro insurers, financial services firms, and other companies that rely on taking data from handwritten forms.

Saphron has successfully raised $998 million in seed fund from venture capital fund Sage and Talino Labs in 2019. It is gearing up for a wider range of products and intensive training sessions with new CPMI “nanay’ agents.