Insurance to play crucial role in the growth of digital payments ecosystem: Chubb

A new survey from global property and casualty insurer Chubb has highlighted the rising impact of cyber fraud on consumer trust and behavior.

The survey, which was conducted across the US, Mexico, Brazil, Indonesia, Singapore, the Philippines, Thailand, and Vietnam, reveals that 61% of respondents have altered their use of digital payment platforms due to cyber scam concerns.

In fact, nearly half (46%) of respondents mistakenly believe their payments are protected.

Phishing/vishing and impersonation scams, as well as fake product or service purchases, were named as the key concerns among respondents.

It’s no secret that digital payments have become a major aspect of our daily lives. In fact, Chubb notes how they play an important role towards fostering financially inclusive economies.

However, findings from Chubb’s survey have showcased the critical role that insurance plays in building trust and helping to enable the growth of the digital payments ecosystem.

From what we understand, all survey respondents have made a digital payment in the last year, and 63% have either been a cyber scam victim or know someone who has been.

Sean Ringsted, Chubb’s Chief Digital Business Officer, commented: “The future of digital payments is bright, and insurance will help play a crucial role in shaping its trajectory At Chubb, we are committed to developing innovative insurance solutions that address the changing risks faced by individuals and businesses in the digital era. By fostering a mindset focused on awareness, vigilance and protection, we can ensure that the benefits of digital payments are accessible to all while mitigating the associated risks.”

According to the survey, 75% of respondents believe transaction insurance would enhance their trust in these platforms.

As well as this, the impact of insurance is highest among consumers in Latin America, where 84% say that they would fully trust or trust payment technology much more if they had personal cyber-scam insurance, and 82% for payment protection insurance.

Interestingly, Chubb revealed that many respondents also see artificial intelligence (AI) as a way to enhance security.

Furthermore, it appears that payment providers have an opportunity to close a trust gap. This is due to 32% of respondents revealing that they don’t trust the security of digital payment technologies, while 36% say that they don’t trust their customer support, and 29% revealing that they don’t trust platforms to protect their confidentiality.

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