As insurance penetration dips, innovative solutions are needed to make insurance more accessible and appealing to a broader population, according to regional insurtech Igloo.
In a statement, Igloo cited recent data which indicated a decline in coverage across the country.
In 2023, insurance penetration in the Philippines sank to 1.6 percent, lower than the 1.73 percent recorded in 2022.
“As the Philippines experiences a decline in insurance penetration, digitalization offers a clear solution to reverse this trend. By simplifying processes for intermediaries and customers alike, insurers can eliminate barriers to entry,” Igloo said in a report.
One innovative solution, Igloo said, is end-to-end digitalization.
Igloo for example leverages technology and partnerships to streamline operations across the entire insurance value chain—from insurance and intermediaries to consumers.
By digitalizing processes throughout the ecosystem, Igloo enables faster, more efficient services, seamlessly integrating insurance into everyday digital interactions such as e-commerce and travel bookings.
One key step is the creation of digital platforms for intermediaries which traditionally rely on manual processes from onboard customers to settling claims, which can be time-consuming and prone to errors.
“Digital tools allow intermediaries to streamline the entire process from customer onboarding to claim settlement. These tools help manage customer information, assess needs, and complete transactions faster and more accurately. As a result, intermediaries can focus more on building relationships with current and potential clients, rather than being burdened by administrative tasks,” Igloo said
Another innovation is embedded insurance.
As an insurtech platform, Igloo enables businesses to integrate insurance products into their platforms, facilitating seamless policy applications, purchase, and claims management. This reduces friction for both insurance providers and distributors, streamlining complex tasks such as underwriting, policy issuance, and claims processing.
Igloo partners with online platforms like Lazada and Shopee, as well as payment services like GCash in developing customized and embedded insurance products that integrate smoothly into digital experiences.
Igloo said telecom companies like Smart, consumer finance platforms such as Skyro and Salmon, and B2B MSME (micro, small and medium enterprises) enabler Growsari also collaborate with Igloo in the Philippines to expand access to insurance across different sectors. This enables customers to purchase insurance directly through these platforms.