Igloo, a full-stack insurance technology company based in Singapore, has partnered with convenience stores in Southeast Asia to address the low insurance penetration rate in the region. The lack of accessibility and affordability, combined with the complexity of insurance, has been a major hindrance for Southeast Asians in availing insurance policies. As a result, Igloo is leveraging an omnichannel approach to establish customer trust and make insurance products less intimidating to purchase.
Raunak Mehta, the CEO and Co-Founder of Igloo, stated their goal is to offer insurance policies that are available to citizens of different socioeconomic status to bridge the gap. Their research reflects that Southeast Asians are doubtful of availing complex insurance products and services without sufficient supervision, especially in lower to middle-income classes. The fear of getting scammed online as they share personal information in purchasing insurance policies has also been a significant factor.
To address these issues, Igloo has partnered with Circle K, a chain of convenience stores with over 400 stores in Vietnam. This additional channel, alongside the other ones they have, will increase accessibility in the purchase of insurance. Making insurance products available in convenience stores will make such solutions less intimidating, especially to those lacking knowledge when it comes to insurance policies.
The partnership with Circle K shows the dedication of the insurtech industry to address issues in accessibility and affordability across all of Southeast Asia. Insurers can also include day-to-day digital platforms like e-commerce and digital payments through insurtech. Such efforts will also digitize transactions that will help with the region in adapting in today’s digital economy.
Igloo aims to create a space where insurance is more seamless and personal for both customers and insurance partners. Currently, the company is only operating in convenience stores in Vietnam, but there are plans for expansion. However, they need to gauge first the potential market for it to offer the best insurance products.
Igloo’s partnership with convenience stores, like Circle K, addresses low insurance penetration rates in Southeast Asia by improving accessibility and affordability. The insurtech industry is dedicated to solving these issues by digitizing transactions and expanding insurance offerings to day-to-day digital platforms, boosting insurance penetration rates in Southeast Asia.