Insurtech industry is evolving — Igloo
I think Southeast Asia has its complexities and balkanization, insurance, and penetration offer the biggest opportunity.
Daily TribuneI think Southeast Asia has its complexities and balkanization, insurance, and penetration offer the biggest opportunity.
With the development of digital technologies, the insurance industry has used new tools to improve operational efficiency and change how they do business. However, an insurer saw a disruption in the distribution of the product.
Mario Berta, Philippine Country Manager of Southeast Asian insurance company Igloo, said during Daily Tribune's daily online show Gising Na! earlier this week that they are digitizing their product to link the gap in product distribution.
Berta added that Igloo, a Singapore-based insurtech, is digitalizing the products in the Philippines by tapping more innovative channels like GGcash and Shopee for Online Shopping Protection, Gadget Insurance and Pet Insurance as part of a suite of microinsurance protection plans.
"I think Southeast Asia has its complexities and balkanization, insurance, and penetration offer the biggest opportunity," Berta explained.
Technologies disrupting the insurance technology, insurance sector
Berta noted that Filipinos could not buy a gadget protection program for their mobile phones or laptops for 30 days.
He explained that some people find the insurance price expensive since they have to buy 365 days a month.
"Maybe people want to ensure that the gadget only if they travel because they're afraid that it gets stolen or lost or they're traveling one onto 7000 beautiful islands, and they fall into the water, which happened to me multiple years," Berta said.
Hence, Berta said Igloo took the opportunity to expand its operations in the Philippines to provide protection plans to a broader range of people, including traditionally underserved groups like gig economy workers and micro, small, and medium enterprises.
In addition, he said that Igloo extended its partnership with the food delivery platform FoodPanda to the Philippines, allowing FoodPanda riders in the country to reduce risks and manage accidental losses while on the road.
Igloo is looking into the possibility of giving farmers in the Philippines insurance based on blockchain. This is to help the agricultural sector deal with and avoid losses during typhoon season.
However, Berta noted the hurdles along the way as Igloo joined the Philippine market.
"Insurance is a very traditional business, so we still need an insurance company that has a license to under right undertaking on board, and they are very good at doing what they do," Berta said.
Digitization simplifies procedures
Instead of taking that task in the eco-system, Berta said Igloo is digitalizing its products and distributing them with the help of technology.
"I think that you know through our technology today pretty much there is a national wide coverage of internet and farmers can pull out their phone, open Gcash, buy a personal insurance for 30 days," he said.
Berta added that digitization allows the insurance industry to simplify procedures.
In particular, he said that digitization would help "distribute (the insurance products) better, be more affordable, be more transparent."
"If you look at all our products on Shopee or all our platforms will be distributed. There are no small letters; there are no Asterix; there are no like we have a hospital cash product. And the hospital cash policy wording says that as long as you go to the hospital, you can prove it and get your money back," Berta said.
Filipinos' hesitance to buy insurance coverage
One of the issues with insurance versus one of the main reasons why most Filipinos and several people worldwide are hesitant to buy insurance coverage is the excellent precept they can understand.
Berta said with the digitization process involved in the insurance sector, it's more transparent, and it's easier to claim from insurance.
He added that everyone has a role in educating Filipino consumers about insurance, as many people realize that they should have availed of it when it's too late.
"On our side, we have complete support from the government, and we have complete support from our partner. So we are going in the right direction," Berta said.
