End-to-end digitalization of insurance is becoming a crucial strategy to boost insurance penetration in the Philippines, especially as recent data indicates a decline in coverage across the country. In 2023, insurance penetration in the Philippines sank to 1.6%, lower than the 1.73% recorded in 2022. This decline highlights the urgent need for innovative solutions to make insurance more accessible and appealing to a broader population.
Igloo, a regional insurtech, addresses low insurance penetration by leveraging technology and partnerships to streamline operations across the entire insurance value chain–from insurance and intermediaries to consumers. By digitalizing processes throughout the ecosystem, Igloo enables faster, more efficient services, seamlessly integrating insurance into everyday digital interactions such as e-commerce and travel bookings.
Empowering Intermediaries with a Digital Platform
One key aspect of this digital transformation is the creation of digital platforms for intermediaries. Traditionally, insurance intermediaries rely on manual processes from onboard customers to settling claims, which can be time-consuming and prone to errors. Digital tools allow intermediaries to streamline the entire process from customer onboarding to claim settlement. These tools help manage customer information, assess needs, and complete transactions faster and more accurately. As a result, intermediaries can focus more on building relationships with current and potential clients, rather than being burdened by administrative tasks.
Ignite introduced Igloo, a digital platform that helps insurance intermediaries sell more efficiently. Key features include a user-friendly interface for faster browsing, a quick quote system for instant premium calculations, secure payment processing, and tools for team and data management to simplify reporting. It also tracks referral fees in real time, depositing them directly into bank accounts. Launched in Vietnam in 2022, Indonesia in 2023, and now in the Philippines, Igloo offers 42 products across 9 categories, including Travel, Pet, and Motor protection. It was awarded Mobile App of the Year – Vietnam at the Insurance Asia Awards 2024.
Facilitating a Seamless Digital Experience through Embedded Insurance
Igloo is transforming the insurance landscape by providing a seamless, end-to-end digital experience through embedded insurance. As an insurtech platform, it enables businesses to integrate insurance products into their platforms, facilitating seamless policy applications, purchase, and claims management. This reduces friction for both insurance providers and distributors, streamlining complex tasks such as underwriting, policy issuance, and claims processing, making the entire system more efficient and user-friendly.
Igloo partners with online platforms like Lazada and Shopee, as well as payment services like DANA in Indonesia and GCash in the Philippines, and retail chains like Circle K in Vietnam, to develop customized and embedded insurance products that integrate smoothly into digital experiences. In addition, telecom companies like Smart, consumer finance platforms such as Skyro and Salmon, and B2B MSME enabler Growsari also collaborate with Igloo in the Philippines to expand access to insurance across different sectors. This enables customers to purchase insurance directly through these platforms with minimal hassle. As a result, consumers can easily discover, evaluate, and buy insurance products in just a few clicks, making insurance a natural part of their everyday transactions. Consequently, securing coverage for travel, electronics, or e-commerce purchases becomes nearly invisible yet highly convenient.
This frictionless approach allows customers to opt-in with just a few clicks, which improves conversion rates. It also appeals to those who might not have initially considered insurance but recognize its value when offered conveniently.
Bringing Insurance Closer to Consumers, Digitally
Building on its success in embedded insurance and business-to-agent models, Igloo has soft-launched a direct-to-consumer platform in Indonesia, igloo.co.id, where users can explore insurance products like motorcycle, car, pet, and travel coverage from top insurers.
Introducing these platforms is essential for improving insurance accessibility and expanding market penetration. Igloo’s direct-to-consumer platform streamlines the insurance process, enabling users to easily compare products, understand coverage, and manage policies in one place. This approach not only resolves common transparency issues but also empowers consumers to make informed decisions. Digitalization, in this case, increases accessibility, boosts efficiency, and builds trust, ultimately driving higher adoption rates and fostering a more inclusive insurance ecosystem.
As the Philippines experiences a decline in insurance penetration, digitalization offers a clear solution to reverse this trend. By simplifying processes for intermediaries and customers alike, insurers can eliminate barriers to entry. The growing prevalence of embedded insurance and direct-to-consumer platforms also exposes consumers to more coverage options, increasing the likelihood of purchasing insurance and improving overall financial security.