Insurers could see growing interest in financial lines and cyber policies with social-engineering and crime extensions in the Philippines, after Filipino companies reported fraud losses of about ?HP4tn ($71.43bn).
A report by TransUnion Philippines found that business leaders lost around 6% of their annual revenues to fraud in the past year. The figure, however, is below the global average of 7.7%.
Philippine business leaders said first-party fraud and scam/authorised fraud each accounted for 25% of losses in the past year. The Philippines recorded the highest level of first-party fraud among surveyed markets, above the global average of 16%.
About 70% of the 200 Filipino business leaders surveyed said they are extremely concerned about the impact of fraud on their business. That places the country as the third highest among markets surveyed, behind only the United States (89%) and India (82%).
The report, based on TransUnion’s internal data and surveys of business leaders in six markets and consumers in 18 regions, also shows that monetary losses are increasing and fraud is becoming more sophisticated and varied.
TransUnion Philippines’ chief commercial officer Yogesh Daware said, “The financial impact revealed in TransUnion’s latest Top Fraud Trends Report is staggering. Organisations must move from reactive and fragmented controls to proactive, data-driven strategies that can adapt to evolving threats and protect trust at every stage of the consumer lifecycle.”