Insurtech Igloo, alongside its partners, is reshaping the insurance landscape by introducing microinsurance solutions. These microinsurance products, ranging from travel to gadget protection, are bridging the gap for digital natives and underserved communities.
Despite growing awareness, traditional insurance options like life, health, auto, and disability fail to resonate due to affordability and relevance issues. This has led to a meager 1.68% insurance penetration rate in the Philippines as of September 2023.
Microinsurance emerges as a game-changer, offering personalized coverage aligned with the evolving lifestyles of Filipinos.
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“While traditional insurance products may come with high premiums and broad coverage, microinsurance products are designed to provide targeted protection against specific risks that are relevant to our daily lives,” said Roberto Vea, commercial lead at Igloo Philippines. “By offering affordable products that address immediate needs, microinsurance can serve as the gateway to broader insurance protection and may be key to boosting insurance penetration.”
Gadget Protection
Gadget Protection and Online Shopping Protection have emerged as frontrunners, with millions of policies sold in 2023, addressing prevalent concerns regarding device damages and online purchase risks.
The microinsurance sector witnessed a substantial 19.6% increase in premiums to P10.16 billion by September 2023, with over 56 million Filipinos now covered. This growth underscores the industry’s adaptability to digital-first lifestyles, safeguarding virtual assets and offering peace of mind against modern risks.
As digital adoption surges, online channels become pivotal in insurance purchases. Studies reveal a rising trend among Gen Z and millennials opting for online insurance transactions, prompting the integration of embedded insurance into major e-commerce and payment platforms.
“Microinsurance empowers individuals to protect themselves against risks they face today, whether it’s safeguarding their electronics from liquid damage or ensuring affordable coverage for spontaneous travel adventures,” Vea said.