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Embedded microinsurance targets specific risks, revolutionising accessibility in Southeast Asia
Innovation presentation
Regional Insurtech Igloo and DANA, an Indonesian e-wallet company, announced the availability of a new personal insurance product that covers food poisoning. The microinsurance, which can be purchased for a nominal amount of IDR 300 through DANA QRIS, will provide up to IDR 500,000 in coverage, and can be easily claimed by providing an identity card and proof of medicine purchase.
The development of the product was driven by the fact that as many as 43 per cent of survey respondents in Indonesia decide to eat outside the home several times a week, according to a Rakuten Insight Center survey. Another report from Rakuten also noted that 79 per cent of Indonesians preferred eating street food rather than eating at home.
Uniqueness of the project
Igloo’s embedded insurance technology enables easy and seamless integration of insurance products into digital platform’s technology with partner-friendly API. Currently, Igloo boasts partnerships with over 75 companies in fintech, logistics, and e-commerce across six Southeast Asian markets, making it the sole insurtech firm with such extensive coverage. These partnerships aim to improve insurance accessibility in a region where penetration rates are below 2%. Notable partners include Shopee in Vietnam, Tokopedia in Indonesia, GCash in the Philippines, and Foodpanda in Thailand.
What makes Igloo unique among other embedded insurance providers is its ability to work with these digital platforms to to co-create microinsurance solutions that addresses emerging risks of consumers today in a quick phase. This includes the Safe Dining Plan insurance product co-created with Indonesia’s top mobile wallet DANA.
In Q1 2023, food poisoning incidents, including cases linked to trendy delicacies like "Chiki Ngebul" and street food consumption, have raised concerns in Indonesia, prompting calls for heightened vigilance and tailored insurance products to address such occurrences. These incidents highlight the need for increased monitoring of food establishments and the importance of specialised food poisoning insurance for consumers.
In traditional coverage, food poisoning falls under liability insurance products tailored for businesses, leaving consumers with limited options for protection against such incidents, leaving them vulnerable.
In response, Igloo partnered with DANA, one of Indonesia’s largest e-wallet companies, to launch the ‘Safe Dining Plan’ microinsurance product in Q2 of the same year. Priced at IDR 300, it provides coverage for food poisoning and accidental death up to IDR 500,000 for 3 days, accessible through DANA's mobile platform. Igloo's efficient tech and collaboration with insurer and DANA enabled swift conceptualization and implementation of the product, offering seamless integration for partners and easy claims processing for consumers.
