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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. Since its launch, the insurtech has sold more than 100 million policies across Southeast Asia to date.
Micro-insurance 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 2 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. Especially relevant is the strong growth potential of health and motor insurance in the region, with recent reports showing motor insurance is estimated to reach US$257.8 billion in 2023 in Asia-Pacific, while personal accident and health insurance is forecasted to grow at a compound annual growth rate of 11.1 per cent year-on-year from 2019 to 2023. 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.
Raunak Mehta, Chief Commercial Officer of Igloo, said, “Through end-to-end ownership of the insurance value chain and a deep understanding of individual customer lifestyles and associated needs, we are able to provide relevant, affordable, and easily accessible insurance products. 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 has come a long way since its humble beginnings in June 2016—stemming from founder Wei Zhu’s vision to provide affordable insurance for everyone, regardless of their economic background through a range of highly customised insurance offerings that allow people to protect the things and activities that matter to them the most. Igloo’s development and rapid expansion are partly attributable to its successful Series A+ funding round, which brought its total funding to US$16 million. The new funding has allowed the insurtech to further 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’s best-in-class highly scalable cloud-based technology holds numerous patents, including one for its unique screen assessment technology, which is its key differentiator from other insurtech market competitors.
“As a technology-driven company with a growth-oriented culture, Igloo has plans in place to further grow the GWP facilitated through its platform by ten times in the next three years and expand across key markets and industries in the Southeast Asia region. 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 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 will continue to strengthen its regional capabilities through its hiring initiatives. This year, the insurtech expanded its team with key hires, appointing Roshan Mahtani as their Chief Financial Officer and Nic Jenkinson as Director of Product. Both Mahtani and Jenkinson have extensive experiences spanning more than a decade in the merger and acquisition space and 20 years in the product development space, respectively.
Igloo, previously known as “Axinan”, is the first full-stack insurtech firm to emerge from Singapore. It has offices in Singapore, Indonesia, Thailand, the Philippines, and Vietnam, and tech centres are located in China. With a mission of making insurance accessible for all, the firm leverages big data, real-time risk assessment, and end-to-end automated claims management to create B2B2C insurance solutions for platform companies and insurance companies. Igloo’s insurance solutions enable companies to eliminate their exposure to operational risk, create new revenue streams, and optimise and enhance existing products and services. In April 2020, Igloo successfully closed its Series A+ funding round worth US$8.2 million, bringing its total funding to US$16 million from global investors.
Igloo is led by a core team that comprises top talent from the technology and insurance industries hailing from global corporations including Facebook, Grab, Flipkart, Garena, Manulife, Shopee, Yahoo! and Zalora.
For more information, please visit https://www.iglooinsure.com/
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