Igloo partners with Philinsure to provide digital products
Igloo, a full-stack insurtech startup founded in 2016, has announced it is joining forces with Philinsure – a leading and fast-growing broker based in Manila.
Igloo, which uses state-of-the-art technology on its platform, leverages big data, real-time risk assessment and end-to-end automated claims management to create innovative B2B2C insurance solutions for platform partners and insurers.
The partnership will mean Philinsure customers will be able to purchase digital products in the emerging, Philippine marketplace. The collaboration will make “accessible and affordable insurance to Filipinos in the country to support their need for security and protection,” a statement from Igloo revealed.
Formerly branded as Axinan, the new insurance products will be marketed to micro, and SME businesses.
Insurtech in the Philippines
Although fintech and insurtech markets are growing rapidly in the Philippines, much needs to be done to ensure customers have access to services that could help them in the event of a crisis.
According to reports, the Philippines is currently home to more than 190 fintech companies, with lending (24%), payments (21%), digital wallets (12%), and remittances (12%) being the four most predominant verticals.
Only 29% of adults in the Philippines have bank accounts and the market is ripe for growth. However, an extremely large proportion of the population remains underserved by insurtech services.
Currently, the adoption of digital insurance in the Philippines is exceedingly low (under 1%) and customers don’t have the opportunity to access such services digitally. The insurance industry is still entrenched in traditional legacy systems and distribution methods.
SMEs in the Philippines
Igloo’s CCO, Raunak Mehta said the COVID-19 pandemic has meant digital transformation for legacy industries has now reached a critical point and tapping into the latest technology is a way to develop emerging markets.
“This partnership with Philinsure aims to support a very important sector in the Philippines, such as small business owners whose work have a very real and immediate impact on their communities,” Mehta explained. “We want to be able to provide them with affordable and relevant protection to give them the confidence to focus on their business and their livelihood.”
Micro and SMEs are the economic backbones of the Philippines, providing jobs for two-thirds of the population.
Gordon Alan Joseph, Philinsure’s CEO, pointed out recent figures from the UN Development Programme and explained that businesses in the Philippines that have been most severely affected by the pandemic, are MSMEs. Unfortunately, these enterprises make up 99.5% of the country’s businesses and employ 63% of the workforce.
He said that the collaboration with Igloo would provide a clear path forward for small business owners to manage crisis more efficiently. “We see that working with Igloo will help us achieve greater efficiencies in our post-pandemic digitisation programme,” Joseph said.
TrueMotion insurtech acquired by Cambridge Mobile Telematics
One of the world’s leading telematics insurtechs, Cambridge Mobile Telematics, was launched in 2010 and powers 65 enterprise programmes in 28 countries.
Meanwhile, TrueMotion, which launched in 2012, has enjoyed significant success as a telematics operator, raising US$10mn in its seed funding round in 2010, and then partnering with the motor insurtech Noblr in 2019.
TrueMotion has also entered the European market, collaborating with LB Forsikring to promote safe driving in Denmark.
The joining of the companies means TrueMotion’s 150-strong workforce will join Cambridge Mobile Telematic’s already established team, along with their client list, which includes Travelers, Farmers, and Progressive.
The new company will focus on increased interest in using telematics for crash reconstruction in personal lines claims and more innovation in the telematics space.
Speaking about the acquisition, William Powers, CEO, and co-founder of Cambridge Mobile Telematics, described the move as an opportunity to explore new markets, expand throughout the US and bring telematics to a much wider customer base.
"With this acquisition, we will use our world-class talent, technology, and scale to help our partners overcome the complex challenges of global road safety,” he added.
Ryan McMahon, VP of insurance and customer affairs for Cambridge Mobile Telematics, explained that expanding the company with additional talent and customers would help meet the demands of a growing telematics market. He also quoted data from a study by J.D. Power which revealed that personal auto telematics users have doubled in five years to 16% of policyholders.
McMahon told the press, “This market is rapidly expanding, and building more capabilities is more important than ever,” McMahon says. “Both companies follow similar philosophies and grew up in similar ecosystems, and now we’re bringing those cultures together.”
He continued, “Telematics is absolutely the future of commercial auto and rideshare, and it’s kind of a step up beyond the normal telematics."
McMahon added, “We will not only widen our lead in smartphone telematics, but also use our combined talent to invent new products for risk measurement, contextual telematics, and crash mitigation across emerging mobile, IoT, connected-car, video, and sensing technologies.”
Five reasons why telematics is in demand
- It reduces fuel costs and increases operational efficiency. This is a consideration for most commercial fleets given the rising costs of fuel
- The technology enables fleet managers to plan operations with greater precision by providing exact locations, timescales, and speeds of vehicles.
- It improves driving standards and monitors driver behaviour, reducing detours and ensuring responsible driving.
- It helps fleet health and maintenance by monitoring the health of operational vehicles.
- It increases corporate social responsibility in terms of care for the driver, the vehicle, the impact of driving in terms of emissions, and also the security of the vehicle itself.
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