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June 23, 2024

Igloo: Southeast Asian insurance sector undergoes transformation

Southeast Asia’s insurance sector is undergoing a significant transformation to align with evolving market demands and maintain competitiveness. In the Philippines, where insurance penetration stands at a mere 1.68%, the industry faces persistent challenges, including complexities, outdated systems, and regulatory hurdles.

Despite these obstacles, the industry is pushing forward with innovation and modernization, with insurtechs emerging as crucial drivers of change. They are fueling efficiency enhancements and elevating customer experiences.

Insurtechs facilitate the seamless integration of insurance into the purchase journey across various platforms, including e-commerce, fintech, and logistics. They also enable brick-and-mortar establishments, such as convenience stores, to become viable distribution channels, enhancing accessibility and awareness of insurance products, particularly for offline consumers.

Insurtech firms empower insurers to create personalized products that meet the unique needs of underserved sectors and effectively manage emerging risks in the digital lifestyles of consumers today. These products include pet insurance, travel insurance, electronic and mobile phone protection, and micro, small, and medium business insurance.

Insurtech Igloo identifies key trends expected to persist in 2024, further enhancing efficiency throughout the insurance value chain and propelling the ongoing momentum of embedded insurance and personalization.

Artificial Intelligence (AI) is rapidly becoming the cornerstone of the insurance sector, revolutionizing the analysis of data and risk assessment. Insurers are increasingly leveraging AI for advanced data analytics, allowing deeper insights into customer behavior, preferences, and emerging risks. By harnessing AI, insurers can enhance risk assessment models, leading to more accurate pricing and better management of uncertainties in the market.

Blockchain’s sustained influence in insurance streamlines claims processing, ensuring efficient, fraud-resistant transactions. This enduring trend enhances accuracy, trust, and operational efficiency in the insurance landscape.

The adoption of zero-code platforms is set to streamline and accelerate the launch of new insurance products across various channels. These platforms empower insurance companies to develop, modify, and deploy applications without extensive coding, reducing time and resources required for product development.

As the industry becomes more digital, insurance agents are poised to benefit from advanced technologies that enhance productivity and improve customer interactions. Insurers are expected to invest in empowering agents with digital tools and resources, facilitating seamless communication, quicker policy issuance, and personalized customer experiences, contributing to overall positive customer journeys.

Climate insurance has emerged in response to the increasing frequency and intensity of climate-related events. Insurance has become a critical tool for managing financial losses resulting from climate change impacts, aligning with the shift towards sustainability and resilience.

Igloo believes the rising demand for personalized insurance in the region is prompting insurers and embedded insurance ventures to embrace the latest tech trends. By incorporating these innovations seamlessly, Igloo aims not just to keep up but to stay ahead, shaping the future of insurance for Southeast Asian communities.

Igloo is the first full-stack insurtech firm to emerge from Singapore, with offices in Singapore, Indonesia, Thailand, the Philippines, Vietnam, and Malaysia, along with tech centers in China and India.