Insurance technology firm Igloo Insure announced plans to expand in the Philippines, focusing on talent acquisition, after raising an additional $27 million from Series B extension, which completes its funding round of $46 million (about P2 billion).

Cathay Innovation led the investors, with ACA, OpenSpace, and other capitalists.

In an interview with the Daily Tribune's digital show Straight Talk, Igloo country manager Mario Berta said the company plans to hire more people in the Philippines for its regional expansion plan.

"The Philippines is one of the most important markets for Igloo," Berta said, adding the country offers vast potential from the huge percentage of its population who owns smartphones and have Internet access. "The Philippines comprises at least 50 percent of our market size."

The new round of investment was participated by a consortium of impact investors, including BlueOrchard, Women's World Banking Asset Management and Finnfund.

The InsuResilience Investment Fund II, initiated by German development bank KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and managed by impact investor BlueOrchard Finance Ltd., led the capital extension, along with WAM, Finnfund, La Maison, and Series B lead investor, Cathay Innovation.

"With its expertise, capabilities, and technology to develop products and solutions that directly benefit our target groups, Igloo is well positioned to advance our mission to protect vulnerable communities from the consequences of climate change by strengthening their resilience," Mahesh Joshi, Head of Private Equity Investments Asia at BlueOrchard, said.

"We see a profitable, sustainable, and socially-conscious business model that we are proud to back."

"Women are a major contributor to the economic activity in Southeast Asia, and Igloo's technology-led impactful model plays a critical role in securing their financial resilience by making insurance accessible to the most vulnerable and underserved segments," Rajat Arora, head of Asia at WWB Asset Management, said.

We are proud to back a visionary and high-energy team disrupting the traditional insurance industry and helping it scale to the next growth stage.

"Finnfund is devoted to increasing the insurance coverage in emerging markets through its investments," said Ulla-Maija Rantapuska, Investment Manager at Finnfund. "We believe digital insurance solutions can help break some barriers to inclusive insurance. We look forward to a partnership with Igloo, sharing the same goal: making insurance accessible and affordable for all."

The latest funding round reflects investors' confidence in the continued stellar performance of Igloo as it brings insurance coverage to the large uninsured and underinsured segments in Southeast Asia.

Growth momentum strong

Igloo has been on a solid growth trajectory, having cemented partnerships with over 55 companies across seven countries and over 15 products in its expanding product suite. It has facilitated over 300 million policies and increased gross written premiums by 30 times since 2019. Since its inception, Igloo has been making insurance accessible and affordable through data and technology in Southeast Asia. It is the only regional insurance with all major economies contributing to its performance.

The company has championed financial inclusion for underserved communities across the region to help build a more sustainable future in line with the United Nations' Sustainable Development Goals.

It has been at the forefront of addressing underinsurance for gig economy segments by providing comprehensive and competitively-priced insurance for delivery riders through its Foodpanda partnerships in Thailand, Singapore and the Philippines, as well as Lozi and Ahamove in Vietnam.

Recently, Igloo launched its first parametric Weather Index Insurance product in Vietnam — one of the top five rice exporting countries. Utilizing blockchain-based smart contracts, the product automates claims payouts calculated using pre-assigned values for losses due to weather events or natural calamities — alleviating the yield loss and livelihoods that paddy farmers face during adverse weather events. It is Vietnam's first parametric insurance and the company's first integration of smart contracts into insurance.

The additional funds provide Igloo with a comfortable multi-year runway. With 50 percent of Igloo's team committed to research and development, the company plans to double down on attracting the best engineering, product, design, and data talent across all geographies. Igloo is also in the process of identifying and closing on various M&A opportunities to help it move swiftly towards its vision for "Insurance for All."

"The support from our investors underlines the value of our technology proposition in making insurance accessible and affordable for underserved communities, especially gig economy workers and MSMEs. As a leading insurtech firm in Southeast Asia, building sustainable ecosystems is a prerequisite for us. We are now well positioned to leverage our expertise, accelerate our growth across the region, and further strengthen our products and services portfolio that addresses the traditional insurance gaps," said Raunak Mehta, Co-Founder and CEO of Igloo.