Friday, January 27, 2023

Regional insurtech Igloo eyes more opportunities to drive financial inclusion in the Philippines with US$ 27-M in fresh funding

Following a successful $27-M Series B+ funding, regional insurtech Igloo is gearing up to further accelerate financial inclusion in Southeast Asia. Seeing tremendous growth in the Philippines, Igloo will be allocating a portion of the funding to deploy more insurance solutions and increase coverage across the country. 

The first investment in Southeast Asia, the recent funding round was led by a group of global institutional investors, highlighting their shared mission of protecting the communities they serve. The investors have expressed interest in Igloo’s initiatives in the Philippines which include providing <credit line insurance to entrepreneurs, half of which are women, through its partnership with Philinsure. The firm also pioneered Foodpanda’s PandaCare initiative, a comprehensive insurance package for platform workers that includes accidental death, accidental dismemberment, medical reimbursement, hospital assistance, and burial expense.

“With an insurance penetration rate of less than 2%, we entered the Philippines by listening to the unmet needs of Filipinos to ensure we are filling the gaps that other players have yet to address,” said Mario Berta, Philippine Country Manager for Igloo “With the success of the B+ funding, this ensures that we can strengthen our current tech capabilities and allow us to introduce new solutions that would reach more underserved sectors in the Philippines.” 

Igloo is currently in talks with insurance and government partners to bring the first blockchain-based Weather Index Insurance, a new technology that would provide immediate financial assistance to farmers in times of adverse weather conditions. With an average of 20 typhoons traversing the Philippines every year, Weather Index Insurance will not only fast-track farming communities’ recovery but also guarantee the sustainability of their livelihood.

While Igloo helps insurance partners onboard their products into digital platforms, the firm is also finding more solutions to support direct sales intermediaries. As the industry transforms itself, there is also a need to help agents and brokers prepare for the increasing demand for insurance. The firm intends to introduce Ignite by Igloo, an intuitive AI-powered digital solution, that enhances the productivity of agents by automating manual paperwork and inefficient procedures. 

With the increased ease of purchase of low-cost protection, latest data from the Insurance Commission (IC) showed microinsurance premiums jumped by 15% in the first quarter alone. Riding off the growth of the segment, Igloo has facilitated over 100 million through local insurance partners in the past four years it has been in the market.

“The Philippines being one of the most digitally connected places in the Southeast Asia region is an advantage for insurtech companies because technology is heavily involved in the lifestyle of Filipinos.“ said Berta “We will leverage technology to reach out to sectors within the Philippines since every Filipino deserves to have access to insurance, no matter where they live.”




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