Remittances are a financial lifeline for millions of households, yet senders remain highly exposed to risks that traditional remittance services do not address, according to new research from Chubb.
The report, The Remittance Trust Trap: Revealing Hidden Vulnerabilities, identified a major gap between consumer trust in remittance channels and the insurance protection available to mitigate financial loss.
Drawing on surveys of 3,500 below-median income remittance senders across the US, the UK, Spain, UAE, Singapore and Australia, the study highlighted that demand for insurance among this group far outweighs actual adoption. Nearly 90% of respondents expressed strong interest in products such as income protection, hospital cash, accident and payment protection insurance, yet uptake remains minimal.
Protection gap in the gig economy
The research underscored heightened vulnerabilities for gig and migrant workers, who make up a large share of remittance senders. Only 3% of US-based gig workers said they could cover more than three months of expenses without income, illustrating strong demand for income protection or accident coverage.
Meanwhile, digital remittance channels have improved accessibility but they bring cyber exposures. One-third of global senders reported falling victim to online fraud, rising to 39% among US gig workers. This creates clear opportunities for insurers to design cyber-enabled remittance protection products, fraud, and data breach coverage.
Regional vulnerabilities reflect broader insurance needs
Even in developed markets, financial stress is acute. More than half of Australian respondents described their finances as "difficult," while 65% of Singaporean senders reported heightened job insecurity. Such vulnerabilities align closely with insurance solutions like hospital cash and employment-linked coverage that could help stabilize financial wellbeing.
Sean Ringsted, Chubb's chief digital business officer, said the findings point to an urgent need for insurers and remittance providers to collaborate. “[P]erceived security doesn’t always equate to real protection,” he noted. "It's a call to action for the entire ecosystem – insurers, remittance providers, and policymakers – to collaborate on building a safer, more resilient financial future for these essential global citizens."
