The inaugural Sender Market Vulnerability Index spotlights the financial fragility of foreign workers, and a disconnect between senders' trust in remittance services and their actual risk
NEW YORK, Sept. 24, 2025 /PRNewswire/ -- Chubb, a world leader in insurance, today announced the findings of its comprehensive global study of 3,500 international remittance senders in its ground-breaking report, "The Remittance Trust Trap: Revealing Hidden Vulnerabilities," which uncovers critical and often overlooked risks faced by international remittance senders, particularly those in the burgeoning gig economy.
Remittances constitute the principal, and sometimes the sole, financial conduit to many individuals and families at the household level. These remittances are not simply financial transactions but vital lifelines that contribute to nutrition, healthcare, education, and financial safety nets for recipient families. Without these funds, recipients may struggle to afford essentials like food, shelter, and clothing. And beyond individual households, remittances can contribute to local economies by increasing spending power and fostering community development.
The report highlights a significant disconnect between senders' perceived trust in remittance services and the actual risks they encounter, as measured by the launch of research's inaugural Sender Market Vulnerability Index (SMVI). This innovative and first-of-its-kind tool assesses the economic, social, and technological dimensions of vulnerability from remittance senders in key cross-border corridors (U.S., U.K., Spain, UAE, Singapore, Australia). More than 3,500 international remittance senders with below-median household incomes, many of whom were foreign and gig workers, were surveyed.
Key Findings from "The Remittance Trust Trap" and the survey of 3,500 remittance senders:
- The Trust-Vulnerability Disconnect: The SMVI reveals a counterintuitive trend: senders who express high confidence in remittance services reaching their recipients securely often exhibit higher actual vulnerability. For instance, senders in the UAE show strong trust despite facing substantial underlying risks (33% in the UAE vs. 27% globally). This disconnect underscores a critical need for enhanced protection.
- Elevated Vulnerability for Migratory and Gig Workers: Foreign and gig workers, who constitute a significant portion of remittance senders, consistently face heightened economic instability, limited social safety nets, and greater susceptibility to technological risks. Only 3% of U.S. migratory and gig workers, for example, report that they could sustain living expenses for more than three months without income.
- Cybersecurity Concerns Offset Digital Convenience: While digital remittance channels offer unparalleled convenience, over one-third (34%) of global senders reported being victims of online fraud or cybercrime. This figure rises to 39% for foreign and gig workers in the U.S., leading many to reduce their use of digital platforms and potentially undermining financial inclusion efforts.
- High Demand, Low Adoption for Insurance: The survey found overwhelming interest in tailored insurance products among remittance senders, with nearly nine out of 10 respondents expressing significant interest in income protection, hospital cash, accident coverage, and payment protection insurance. Despite this demand, actual adoption rates remain low, highlighting a substantial protection gap.
- Surprising Market-Specific Vulnerabilities: The study revealed unexpected vulnerabilities in seemingly stable markets, with 55% of respondents of Australians -- reiterating that the study focused on below-median household incomes -- describing their financial situation as difficult. Singaporean senders expressed unusually high anxiety about job security (65% vs. 45% global average).
"The global remittance system is a lifeline for millions, yet our research exposes significant hidden vulnerabilities that demand urgent attention," said Sean Ringsted, Chief Digital Business Officer at Chubb. "The 'Remittance Trust Trap' highlights that perceived security doesn't always equate to real protection, especially for the hardworking individuals who power the gig economy. 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."
The report outlines clear recommendations for stakeholders:
- For Remittance Companies and Insurers: Develop tailored insurance products (e.g., remittance theft/loss, income or personal accident protection, cyber insurance); accelerate claims response; strengthen fraud detection and data privacy; raise awareness; communicate with clarity and compassion; prioritize user financial resilience; and navigate regulation through expert partnerships.
- For Policymakers: Promote financial inclusion and access to affordable insurance; invest in educational initiatives focusing on financial literacy and digital security.
- For Individual Senders: Stay informed about cyber threats; use secure platforms; seek improved awareness and knowledge; and practice caution.
"Addressing these vulnerabilities is not just an economic necessity; it's a private and public undertaking," Ringsted added. "By innovating with accessible protection, investing in security and transparency, and empowering senders through education and reasonable regulations, we can collectively strengthen the entire system and ensure that global mobility leads to enduring opportunities for all."
Methodology
"The Remittance Trust Trap: Revealing Hidden Vulnerabilities" is based on a survey of over 3,500 international remittance senders with below-median household incomes across the United States, United Kingdom, Spain, UAE, Singapore, and Australia from March 28 and April 10, 2025, who had sent international remittances within the past 12 months. The full research report is available at https://about.chubb.com/stories/remittance-trust-trap-revealing-hidden-vulnerabilities.html
About Chubb
Chubb is a world leader in insurance. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The company is defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb employs approximately 43,000 people worldwide. Additional information can be found at: www.chubb.com.
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