Singapore and Vietnam, 16 March 2021 - Today, Igloo, Southeast Asia’s leading Insurtech firm has officially launched in Vietnam by announcing a major partnership - Vietnam’s fastest-growing one-hour-delivery e-commerce platform, Loship, to offer digitally-enabled microinsurance solutions that cater to the changing lifestyle needs of the people in Vietnam. Igloo’s expansion into Vietnam - one of Southeast Asia’s top digital economies projected to reach US$52 billion in 2025, will allow the insurtech to strengthen its footing as the leading Insurtech firm in Southeast Asia.
The partnership with Igloo allows Loship to offer first-of-its-kind failed delivery insurance to its 70, 000 delivery drivers so they can complete their jobs at ease. At an affordable rate of VND28,900/month fee (US$1.25/month), the failed delivery insurance allows them to cover additional shipping costs for returned goods should consumers decide to return their orders due to product discrepancies. The policy could mitigate the problems brought about by delivery and fulfillment hiccups especially when Vietnam saw a 25% surge in online shopping during COVID-19 (Deloitte’s 2020 report).
As a mobile-first country with an increasingly tech-savvy population, Igloo sees an opportunity to capitalise on Vietnam’s booming digital economy by working with the country’s leading telecommunications firm, Mobifone, to launch “Mobicare” for its 30 million mobile subscribers. Underwritten by PetroVietnam Insurance (PVI), “Mobicare” is a customised Personal Accident (PA) product that includes daily allowance, internet data package, and teleconsultation services by Singapore-based telehealth startup Doctor Anywhere, to provide Vietnamese consumers with easy access to healthcare services.
Mr. Nguyen Anh Duc, Head of Commercial and Insurance Partnership at Igloo, shares, “Igloo’s primary goal has always been to provide affordable and accessible microinsurance for everyone. By using our in-house technology capabilities, we want to transform the traditional insurance industry by working with partners to offer affordable insurance policies to the masses. By working with Loship to locate the pain points that our Vietnamese consumers face in their daily lives, especially during the COVID-19 pandemic, we are able to create customized microinsurance products that protect them from what really matters.”
These partnerships mark Igloo’s official entry into Vietnam after the company has seen a momentous year in 2020 despite the economic downturn posed by the pandemic. In addition to a fivefold increase in Gross Written Premiums in 2019, Igloo has also transacted more than 100 million policies since it was first launched in 2016 across key markets such as Singapore, Indonesia, Thailand, and the Philippines. As consumer behavior and lifestyles continue to change - with 40 million new digital users emerging in Southeast Asia alone last year - Igloo’s collaboration with Loship reinforces its efforts to create ever-more relevant digitally-driven microinsurance solutions for its customers and partners, to bridge the US$2.7 billion insurance gap in Vietnam.
Loship Co-founder & CEO Nguyen Hoang Trung says, “As the leading food delivery service in Vietnam, Loship is committed to improving the quality of life for our drivers. By working with Igloo, Loship can ease the drivers’ burden, solve major problems such as failed delivery, refused delivery, cracked phone screen, and many other mishaps. We believe the partnership with Igloo will pave the way for better driver satisfaction, further taking our customer experience to the next level and surpassing the rest.”
In the next two to three years, Igloo plans to expand its presence in Vietnam by growing its Vietnamese team fourfold. It will also be entering into more strategic partnerships across various industries to diversify its product portfolio to include single disease, home, business, internet security, e-wallet, and pet insurance. Besides Indonesia, Vietnam is set to be the fastest-growing market for Igloo, with one in three policies expected to be sold via Igloo’s platform.
Currently, Igloo’s partner network includes Bukalapak, Fabelio, Lalamove, and Ritase from Indonesia; foodpanda Thailand in Thailand; UnionBank of the Philippines, Akulaku, and Philinsure in the Philippines, to name a few. It has also worked with renowned insurance players across the region such as Allianz, Cigna, MSIG, PetroVietnam Insurance, Tune, and Sompo in Vietnam.