Sun Life Philippines to boost fintech adoption

SUN LIFE of Canada (Philippines), Inc. plans to expand its use of financial technology (fintech) and forge more partnerships as it seeks to deepen its understanding of customers and improve its products, its incoming chief executive officer (CEO) said.

Sun Life Philippines President, incoming CEO and Country Head Jonathan Juan D. Moreno said the insurer is focusing on using data to guide product development.

“We are going to come up with client-centric products,” he told reporters last week, adding that their product development cycle is very much data-driven.

Mr. Moreno, who formally assumes the role of CEO and country head on April 1, said the company would prioritize fintech adoption, strategic partnerships and stronger operational foundations to support its expansion.

He said they need to improve their understanding of their customers, adding that his experience in the retail sector shaped his approach to the role.

“In retail, one very important skill that you need is to get the pulse of your consumers.”

As part of its push to expand in the high-net-worth segment, Sun Life Philippines plans to launch a product focused on legacy planning before the end of the first quarter, Mr. Moreno said.

The insurer is also studying the launch of more global technology funds for affluent clients after seeing strong interest in such investments last year.

“Last year, we saw a bunch of tech funds being launched. The high-net-worth clients are kind of more sophisticated. They know where to place their money,” he said.

Mr. Moreno said demand for offshore investments remains despite market volatility stemming from war in the Middle East.

However, he said the country’s insurance penetration rate might not necessarily improve even if the Philippines achieves upper middle-income status because financial literacy remains a key challenge.

“Affordability is one of the reasons why people do not get insurance,” he said. “If affluence increases, the propensity to buy insurance also rises.”

But many still see insurance as a nonessential product, he pointed out.

The Philippines has remained in the lower middle-income bracket since 1987 despite posting a gross national income per capita of $4,470 in 2024.

This was just $26 below the World Bank’s threshold of $4,496 to $13,935 for upper middle-income country status.

The Washington-based lender is expected to release updated income classification thresholds in July.

Mr. Moreno also said income growth in the country might not be evenly distributed across income groups.

“Assuming growth is inclusive, it’s going to be a function of inflation and wages,” he said.

Sun Life Philippines remained the country’s top life insurer last year in terms of premium income and net income, posting P61.183 billion and P10.225 billion, respectively, based on the latest data from the Insurance Commission. — Aaron Michael C. Sy