AI-backed insurer forms partnership with local consumer finance firms

In a move to advance financial inclusion and promote access to insurance products, Igloo, a regional insurtech, has recently announced its partnership with consumer finance platforms in the Philippines.

This collaboration aims to provide gadget protection products to shoppers, making it easier for them to secure their purchases through digital loans or alternative financing, whether online or in-store.

The Philippines has made significant progress in financial inclusion, but a considerable portion of the population remains unbanked, making it difficult for them to establish a credit history. This gap in access to traditional banking services has led to the rise of the consumer lending industry, which caters to the needs of the unbanked population by offering alternative financial solutions such as digital loans that do not rely on traditional banking infrastructure.

Lower barriers to entry, competitive interest rates, and simplified application processes have facilitated Filipinos’ access to crucial loan products, driving the popularity of installment financing and buy-now-pay-later (BNPL) schemes.

BNPL, in particular, is forecasted to reach US$2.29 billion by 2024. Many of these loans are facilitated in physical retail outlets, offering consumers the flexibility to make purchases and arrange financing conveniently in-store.

Igloo, with its commitment to being where it can impact consumers most, has partnered with leading digital lending companies Skyro and Salmon alongside Etiqa to develop a product designed to protect installment purchases and ensure accessibility wherever their customers are.

This partnership has resulted in the introduction of innovative products like Gadget Protection, Loan Protect with Skyro, and Loan Protect with Salmon. Soon, Salmon, Etiqa, and Igloo will also launch Accidental Damage and/or Liquid Damage, along with Extended Warranty products.

These offerings provide comprehensive protection for customers’ purchases through consumer finance platforms. These protection products are available in top mobile and appliance stores nationwide.

The process is simple: when a customer purchases a device, the insurance product is seamlessly integrated into the client’s loan amount. This integration ensures that premium payments are effortless, hassle-free, and budget-friendly.

Once the policy is active, Gadget Protection will step in if the consumer faces device issues requiring repairs or replacements. The policy covers the costs associated with these services, providing the customer with peace of mind and financial security.

Roberto Vea, Commercial Lead at Igloo Philippines, emphasized the company’s mission of providing ‘insurance for all’ and safeguarding purchases made by an underserved sector. This initiative offers a layer of financial protection that they may not otherwise have access to. Igloo, Etiqa, and their partners are committed to working together to develop products that cater to the diverse needs of the people they serve.