Vietnam, 25 April 2024 – Regional insurtech Igloo announced today the strategic partnerships with leading finance solutions Zalopay, Lotte Finance, FE Credit and the digital insurer OPES , aiming at expanding insurance coverage to broader underinsured communities in Vietnam. These partnerships not only offer popular insurance products but also introduce a new range of products tailored to safeguard the distinctive needs of modern, tech-savvy Vietnamese individuals.
In Vietnam, insurance awareness predominantly revolves around well-known types such as life insurance, health insurance, and vehicle insurance. The limited understanding of insurance has significantly contributed to the country’s low insurance penetration. Presently, the ratio of insurance premium revenue to GDP stands at just over 3 percent, which is lower than the ASEAN average rate of 3.35 percent, the Asian average rate of 5.37 percent, and the global average rate of 6.3 percent. As awareness of the importance of insurance is on the rise, people are increasingly seeking tailor-made products that directly address their lifestyles and the daily risks they encounter. This is where Igloo and its partners are changing the game.
In particular, Igloo’s collaboration with Zalopay offers Phone Screen Protection through Vietnam’s second-largest e-wallet network, boasting over 14 million regular users and a network of more than 30,000 merchant partners. The increasing smartphone usage in Vietnam underscores the demand for device insurance. Mobile screen coverage, incorporating advanced technology and AI for quality assessment, is pivotal for integration onto e-wallet platforms. This initiative enhances accessibility for smartphone users and aligns with insurtech trends.
With current partner Lotte Finance, Igloo and the high tech financial service provider bring 2 completely new products: Income Protection Insurance and Car Physical Damage. In the wake of economic downturn, businesses globally, including Vietnam, are cutting costs, resulting in widespread layoffs and salary reductions. In this uncertain economic climate, preserving individuals’ income is vital, especially amidst ongoing challenges. Income Protection Insurance provides essential financial security, ensuring stability by safeguarding against job loss due to unforeseen circumstances, enabling individuals to meet daily expenses and maintain livelihoods.
In March, Igloo, OPES, and FE Credit partnered to introduce Accident and Liquid Damage (ADLD) insurance through FE Credit’s extensive network of over 21,000 points of sale. As Vietnamese consumers increasingly favor modern technology equipment, with their spending on electronics ranking among the highest in the region, the need to protect these assets and provide users with peace of mind is paramount. This insurance product is integrated with loans for mobile phone installment plans. The ADLD Insurance package offers coverage for device repair or replacement due to unexpected damage, including incidents such as fire, breakage, water damage, or flooding, providing comprehensive protection for consumers.
Tri Nguyen, Country Manager Vietnam, Igloo emphasized Igloo’s commitment to revolutionizing the insurance industry through technology-driven solutions. He stated, “At Igloo, our mission is to revolutionize the insurance industry through technology, ensuring accessible and dependable insurance solutions. By partnering closely with leading financial and insurance partners in Vietnam, we extend our reach to a wider audience and deliver innovative products tailored to evolving consumer needs. This collaboration underscores our dedication to making insurance affordable and accessible to diverse Vietnamese communities, thereby enhancing insurance awareness and penetration in the country”.
Igloo has been working with a number of partners across Vietnam to make it most convenient for people in the country to access insurance products. To date, Igloo has been on a strong growth trajectory and has cemented partnerships with over 75 companies across 8 countries and over 15 products in its expanding product suite. Some of Igloo’s partners in Vietnam are Mobifone, delivery e-commerce platform Loship, e-commerce giant Shopee, the No.1 24/7 convenience store Circle K, as well as leading insurance companies such as PVI, BSH, Bao Viet, GIC, Bao Minh, MSIG, etc.
The insurtech firm has facilitated over 480 million policies across the region and aims to extend protection solutions to more underserved sectors in the region. Igloo’s strong business potential lies in Southeast Asia’s growing digital economy, which is expected to hit US$300 billion in 2025. The increasing digital insurance penetration opens up new opportunities for digital players and insurance companies which are worth over US$10 billion in the region.
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About Igloo
Igloo is a regional full-stack insurtech firm headquartered in Singapore. It has offices in Singapore, Indonesia, Thailand, The Philippines, Vietnam and Malaysia and tech centres in China and India. With a mission of making insurance accessible for all, the firm leverages big data, real-time risk assessment, and end-to-end automated claims management to create B2B2C insurance solutions for platform companies and insurance companies. Igloo’s insurance solutions enable companies to eliminate their exposure to operational risk, create new revenue streams, and optimise and enhance existing products and services. It has partnered with over 75 well-known brand names across the markets in various verticals, including insurance, telecommunications, e-commerce, hospitality, health tech and financial services.
For more information, please visit https://www.iglooinsure.com/.
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