Singapore-based InsurTech Igloo is closing the year with very favourable performance results, expecting a fivefold increase in gross written premiums facilitated through its platform compared to 2019, the company says in a statement.
Since its launch in 2016, the InsurTech has sold more than 100m policies across Southeast Asia.
Microinsurance products play an important role in this region and Igloo is working towards making these products increasingly available through digital channels. This allows for insurance solutions to be highly customised, affordable, and accessible. The COVID-19 pandemic has further exacerbated the need for digital insurance solutions, with an increase in restrictions and safety concerns around face-to-face transactions.
Igloo has remained buoyant in this tough economic environment where the demand for longer commitment and travel insurance products has been on the decline. This has been made possible due to the InsurTech’s diversification in its offerings as well as its partner base. Since May this year, Igloo has introduced COVID-19 protection products in Indonesia, rider insurance solutions in partnership with foodpanda in Thailand, and credit line insurance to support women entrepreneurs in the Philippines.
Igloo initially started with serving partners in the e-commerce industry alone, with just two insurance products – transit and electronics. Since then, it has expanded its portfolio to more than 15 products, including calamity assistance, cyber risk, e-wallet, personal accident, property, as well as motor and health insurance products, with a slew of new partners in industry verticals like financial services, telecommunications, logistics, and travel.
The firm’s continued focus on providing relevant products has led it to sign up 15 marquee partners this year and improve its unit economics and hence, bottom line.
Mr Raunak Mehta, chief commercial officer of Igloo, said,
“Aside from consumers, our insurance partners benefit through reduced operational costs and risks by tapping on Igloo’s technology to digitise the distribution of products and the claims process in a bid to achieve scale and improve customer experience. Our distribution partners likewise are able to benefit from an alternate source of revenue through which they can provide value-adding products to their customer base and improve retention and lifetime value.”
Igloo’s development and rapid expansion are partly attributable to its successful Series A+ funding round, which brought its total funding to $16m. The new funding has allowed the InsurTech to bolster its capabilities through the implementation of big data, actuarial risk management, artificial intelligence, and machine-learning across its product portfolio and expand its employee size to more than 70 across markets, from just five in 2018.
“Igloo is also looking for strategic investors for the upcoming funding round, which is expected to close in by Q1 next year, with a focus on investors who can accelerate growth in Vietnam and the Philippines,” said Mr Wei Zhu, founder of Igloo.
Igloo’s partner network currently includes the likes of Bukalapak, Shopee, RedDoorz, foodpanda, UnionBank of the Philippines, and Shippit, which help in the distribution of Igloo’s different insurance policies. On the insurance front, the InsurTech has likewise been working with over nine renowned insurance players across the region such as Allianz, Cigna, MSIG, PetroVietnam Insurance, Tune, and Sompo, to name a few.
Igloo has offices in Singapore, Indonesia, Thailand, the Philippines, and Vietnam, and tech centres are located in China.