Igloo, Singapore-headquartered insurtech firm, announced partnerships with Union Bank of the Philippines and Indonesia’s Akulaku to offer micro-insurance policies. Akulaku is one of Indonesia’s most well-funded fintech startups who is best known for their “buy now, pay later” service.
Igloo will be offering a whole suite of personal accident (PA) products on UnionBank’s API Marketplace and Akulaku’s platforms. The products were designed for the lower-income households and is said to be “easy to purchase, simple to understand, and most importantly, highly affordable with 3, 6, 9, and 12 month plans”.
Igloo, a full-stack insurtech firm, employs big data, dynamic risk assessment, and expedited claims management, to provide partners with widened distribution networks and allow consumers’ access to customised insurance solutions. In April, Igloo had rebranded (previously known as Axinan) after closing a Series A+ funding round, bringing its total funding to US$16 million.
The Philippines has one of the most significant insurance gaps in the world. In 2018, the insurance penetration rate in the country stood at less than 1%, and the relative cost of the insurance gap represented 1.3% (US$4.2 billion) of its gross domestic product (GDP).
To close this gap, the market for micro-insurance products has been growing. The penetration of micro-insurance in the Philippines is one of the highest globally – making up to 25% of its population last year, and expected to reach 48% by 2022.
Mr Raunak Mehta, Chief Commercial Officer of Igloo, shared,
“People today are exposed to highly personalised experiences driven by data, and their experience with insurance products should be no different. Our digital-first approach, growing product portfolio and best of practice learnings from the region can help to increase insurance awareness and provide Filipinos with access to affordable insurance that addresses their needs and bridges the insurance gap in the country”.
Arvie de Vera, UnionBank Senior Vice President & Fintech Group Head shared,
“Through the partnership, Igloo’s micro-insurance products are now made available on UnionBank’s API Marketplace. This plays a vital role in enabling and boosting insurance penetration rates in the Philippines through innovative means, and contributes to our shared goal of financial inclusion as Filipinos will gain greater access to affordable insurance solutions.”
William Li, CEO of Akulaku that has over 6 million users on the platform, said,
“We see a huge income disparity in the Philippines. Insurance is important and yet not affordable by many. By partnering with Igloo, we could make insurance affordable again and help safeguard at least the most fundamental aspect of a Filipino’s everyday life.”
Igloo’s partnerships with UnionBank and Akulaku, come after a recent collaboration in Indonesia with Blibli, Bhinneka, and Ciputra Life, where it similarly used its technology to provide catered insurance plans for Indonesians and protect them from the financial effects of COVID-19.
Igloo will be announcing more partnerships in the upcoming months with some of the biggest telcos, banks, and on-demand customer platforms in Thailand, Vietnam, and Indonesia.
Featured image credit: Igloo Facebook
