Singapore-based insurtech firm Igloo has on Wednesday announced its partnership with one of Indonesia’s unicorns and leading e-commerce companies, Tokopedia, to make
purchase protection products more accessible and convenient for consumers.
Through this collaboration, Tokopedia and Igloo will make insurance protection accessible to individuals in 99 percent of districts across Indonesia and to more than 14 million micro, small and medium enterprises (MSMEs), which form the backbone of the Indonesian economy, Igloo said in a statement.
According to the statement, Tokopedia will offer three Igloo-powered insurance products, including gadget protection starting from IDR 48,300 ($ 3.09), electronic protection starting from IDR 14,334 ($ 0.92) for 12-month period, and total loss only (TLO) coverage starting from IDR 500 ($ 0.032) for a span of three to 12 months.
This partnership strengthens Igloo’s network of online shopping platforms as distribution partners across Southeast Asia, which includes major players such as Lazada, Shopee, and Loship in Vietnam.
The partnership will bring Igloo’s regional expertise in embedded insurance to ensure a seamless and efficient customer experience throughout the entire process on the Tokopedia platform, covering purchase, policy issuance, and claims settlement.
Additionally, customers will have access to a dedicated customer support hotline, providing a personal touch and enhancing the overall customer experience.
Cited Digital Indonesia 2024, the statement said Indonesians spent an average of $10.7 billion on electronics in 2023, making it the highest among consumer e-commerce goods categories.
It said this figure highlights the importance of protecting consumers when purchasing gadgets and electronics online.
“Tokopedia will continue to ease access to digital insurance for its users through collaboration with strategic insurance partners, such as Igloo,” said Ruth Afrita, Head of Insurance, Tokopedia.
“The collaboration between Tokopedia and Igloo will provide accessible insurance for products, easily claimed, and continuous customer support,
“We also hope that this collaboration can provide an opportunity to increase financial literacy among Indonesians and contribute to the national economy,” she added.
Raunak Mehta, Co-Founder and Chief Executive Officer at Igloo, said that their industry experience demonstrates e-commerce as a potent insurance distribution channel, safeguarding consumers throughout Southeast Asia.
“Partnering with e-commerce giant Tokopedia bolsters Igloo’s position as the preferred insurtech partner for digital platforms, making insurance accessible and affordable through embedded solutions,” he added.
According to the statement, Igloo has a strong foothold in Indonesia with various partnerships in the country’s leading players in e-commerce, fintech, and logistics including DANA, Fabelio, Lalamove, and Ritase.
The partnership with Tokopedia is Igloo’s first collaboration in Indonesia after it closed a $36 million Pre-Series C funding round in December 2023. This year, the insurtech firm is focused on achieving profitability.
Igloo currently has offices in Singapore, Indonesia, Thailand, The Philippines, Vietnam and Malaysia and tech centres in China and India.
The firm leverages big data, real-time risk assessment, and end-to-end automated claims management to create business to business to consumer (B2B2C) insurance solutions for platform companies and insurance companies.
The firm has partnered with over 70 brand names across the markets in various verticals, including insurance, telecommunications, e-commerce, hospitality, health tech and
financial services.
Singapore’s Igloo closes $36M Pre-Series C fundraise with 50 percent valuation increase