The companies have introduced Borrower Protection under the Home Credit Protect ecosystem, with Bolttech Device Protection serving as third-party administrator. The product provides coverage of up to 120 percent of a borrower’s outstanding loan balance.
Protection gap
The initiative comes as many Filipino households remain vulnerable to financial shocks despite improving insurance penetration.
Citing Boston Consulting Group data, AXA said 64 percent of Filipinos could not afford a P10,000 medical expense without taking on debt or relying on a health maintenance organization.
Insurance penetration in the Philippines reached 2.03 percent in the first quarter of 2026, its highest level in recent years, but the country remains underinsured.
AXA said Borrower Protection is intended to prevent outstanding debt from becoming an additional financial burden on families when unexpected events occur.
How it works
Under the product, the insurance benefit first settles any unpaid loan obligation with Home Credit. Any amount exceeding the outstanding balance is paid directly to the borrower’s designated beneficiaries.
The coverage is integrated into Home Credit’s financing process, eliminating separate paperwork associated with traditional insurance applications.
AXA said the approach is designed to make protection more accessible to low- and middle-income Filipinos, including borrowers with limited or no previous credit history.
Wider access
The product forms part of AXA EssentiALL, the insurer’s inclusive insurance unit focused on expanding financial protection among underserved segments.
Ayman Kandil, CEO of AXA Philippines, said inclusive insurance could also support broader financial inclusion by protecting borrowers and lenders from unexpected risks.
“Beyond protecting families from the burden of unpaid debt, credit life insurance also strengthens the financial ecosystem,” Kandil said.
Kandil said reducing risks for lenders could help financial institutions responsibly extend credit to more consumers, including traditionally underserved borrowers.
The partnership also reflects efforts by insurers to embed protection into financial products consumers already use rather than requiring insurance to be purchased separately. —Ed: Corrie S. Narisma
