Regional insurtech furthers financial inclusion with tailored protection for products purchased through digital loan platforms
In its dedication to promoting financial inclusion and ensuring comprehensive insurance coverage, regional insurtech company Igloo has forged partnerships with consumer finance platforms in the Philippines. Together, they offer gadget protection products to shoppers, aiming to broaden access to insurance and simplify the process of safeguarding items purchased through digital loans or alternative financing. This initiative provides consumers with a more accessible and convenient way to protect their purchases effectively, whether made online or in-store.
Roberto Vea, Commercial Lead at Igloo Philippines, emphasized, “Despite notable strides in financial inclusion in the Philippines, a significant portion of the population remains unbanked. This results in difficulties in establishing credit histories, crucial for accessing financial products like credit cards and loans.” Vea highlighted the rise of the consumer lending industry, which caters to the unbanked population through alternative financial solutions such as digital loans, independent of traditional banking infrastructure.
The consumer lending industry in the Philippines has flourished due to lower barriers to entry, competitive interest rates, and simplified application processes, facilitating access to essential loan products. Installment financing and buy-now-pay-later (BNPL) schemes have become particularly popular, with BNPL projected to reach US$2.29 billion by 2024. Many of these loans are facilitated in physical retail outlets, providing consumers with flexibility in making purchases and arranging financing conveniently in-store.
Vea explained, “At Igloo, we believe in making an impact where it matters most to consumers.” Igloo partnered with leading digital lending companies Skyro and Salmon, alongside Etiqa, to develop a product aimed at protecting installment purchases and ensuring accessibility for customers, whether they purchase online or offline.
In collaboration with Etiqa, Igloo has introduced innovative products such as Gadget Protection, Loan Protect with Skyro, and Loan Protect with Salmon. Additionally, forthcoming products include Accidental Damage and/or Liquid Damage, along with Extended Warranty offerings, providing comprehensive protection for customers’ purchases through consumer finance platforms.
These protection products offer extensive coverage for device repairs, replacements, and loan repayments in the event of unexpected incidents. They are available in top mobile and appliance stores nationwide. The process is straightforward: when a customer purchases a device, the insurance product is seamlessly integrated into the loan amount, ensuring effortless premium payments.
Once activated, Gadget Protection covers the costs associated with device repairs or replacements, providing customers with peace of mind and financial security. Vea concluded, “We are committed to our mission of providing ‘insurance for all,’ including safeguarding purchases made by underserved sectors. We will continue working with our partners to develop products that cater to the diverse needs of the people we serve.”
To learn more about Igloo’s products, visit iglooinsure.com.
