A regional insurance technology (insurtech) company based in Singapore has recently expressed its desire to help increase insurance penetration in the Philippines.
Mario Berta, Country Manager of Igloo, said in an online seminar that the insurance technology market needs to be developed as this could help raise insurance penetration in the country. “Interestingly, the Philippines scored very low on insurance penetration but higher on microinsurance penetration. Our job, really, is to enhance and further penetrate the microinsurance level of the Philippines,” he said.
He added that with a tech-savvy population and a low insurance penetration rate, the Philippine market offers great potential for the insurance technology sector.
Data from the Insurance Commission showed that only three percent of the country’s adult population are covered with insurance protection. Meanwhile, the domestic insurance industry is experiencing robust growth, with total gross written premiums rising 64.3 percent, up from Php 169.6 billion in the third quarter of 2016 to Php 278.7 billion in the same period in 2021.
Strong growth in the Philippines
Fresh from a successful US$139-M Series B funding, Igloo is now building on its success in the Philippines with critical partnerships across various industries. The company has already partnered with insurance companies like Mercantile, Etiqa, Malayan Insurance, PGA Sompo Insurance Corporation, and over 12 commercial partners across the logistics, finance, lifestyle, and travel sectors. It also plans to expand and reach out to customers, banks, and fintech firms.
Since its inception, Igloo Philippines has already facilitated over 60 million protection plans and increased by 20 times its gross written premiums. Its partnerships with Etiqa and Shopee have also made Cracked Screen Protection and Electronics Protection Plans more affordable and accessible to more than 73 million monthly visitors on the Shopee Philippines platform.
Early this year, Igloo extended its partnership with food delivery platform Foodpanda in the Philippines, helping its riders minimize risks and make accidental losses more manageable while on the road.
Just recently, the insurtech company has also partnered with GCash, a leading e-wallet provider in the Philippines. It now offers a suite of microinsurance protection plans – from online shopping protection, gadget protection, and pet insurance – to the more than 60 million users of the GCash app.
Dream of providing insurance for all
Igloo’s growth in the Philippines also sees it delivering protection plans to a wider population, some of which include traditionally underserved segments like gig economy workers and the micro, small, and medium enterprises (MSMEs).
“Insurance partners are increasingly looking at ways to digitalize their internal processes and distribution channels,” said Berta. “This is where Igloo comes in. We offer these insurers a plug-and-play solution that they can use to distribute insurance products via the platforms of big tech players in the Philippines and the region.”
As the only regional insurtech with a diverse set of products and partners, Berta believes that his company will be able to push through with its aggressive growth trajectory. It is currently looking at both organic and inorganic ways to help further drive its vision of “Insurance for All” in the foreseeable future.
He adds that the company’s main objective in the Philippines is to be able to empower partners to sell digital products such as insurance. “Our goal is to bring the most competitive products into the market and to insure the 102 million [uninsured] Filipinos in its 7,300 islands,” he adds.
Igloo’s insurance solutions have already benefited more than 15 million users in Southeast Asia. Its strong business potential lies in the region’s growing digital economy, which is expected to hit US$300 billion by 2025. The increasing digital insurance penetration is also opening up new opportunities for digital players and insurance companies, which are worth over US$10 billion in the region.