In Southeast Asia, insurers are grappling with the challenge of attracting Gen Z—a generation known for its financial savvy and strong desire for financial security. However, despite these traits, traditional insurance products often fail to resonate with them due to their perceived complexity and a general distrust of conventional financial institutions. This disconnect is particularly evident in the Philippines, where despite a projected compound annual growth rate (CAGR) of 9.5% which will see the country’s insurance industry’s value grow to P 209 billion in 2028, actual insurance penetration remains low at 1.6%.

This shows how the industry must address the concerns of Gen Z, a demographic that McKinsey predicts will comprise a quarter of the Asia Pacific’s population by 2025, including around 40 million Filipinos (34.7% of the Philippine population).

Many Gen Z individuals feel that insurance is unnecessary at their age, preferring to focus on immediate experiences rather than long-term financial products. A study by EY found that nearly 40% of Gen Z are worried about making the wrong choices with their money. Further compounding the issue, a survey by Accenture revealed that 52% of Gen Z in Southeast Asia do not trust traditional insurers, fearing hidden clauses and high premiums.

To bridge this gap, insurers must adopt innovative strategies that resonate with Gen Z's preferences. Regional award-winning insurtech Igloo emphasizes that this approach is vital for boosting insurance penetration in Southeast Asia. Here are some tips for effectively engaging this unique demographic:

Make insurance simple and affordable

Insurance products are often seen as complex and confusing, which can turn off younger consumers. To counter this, insurers should focus on offering straightforward policies with clear terms and conditions. Microinsurance, which provides affordable coverage for specific, smaller-scale risks, can be especially appealing to Gen Z. This generation may not have substantial financial resources but still needs protection.

Microinsurance policies can be tailored to cover travel mishaps, gadget protection, or event cancellations at affordable premiums. In the Philippines, Igloo offers products like Travel Master for travel enthusiasts to protect them health emergencies, flight delays and cancellations and Pet Insure, which provides three-in-one coverage package including reimbursements for veterinary care, owner’s liability coverage, and personal accident coverage for dog owners, ensuring that their pets a living their best lives.

By offering these targeted and relevant solutions, insurers can demonstrate an understanding of Gen Z's priorities and financial constraints, fostering a stronger connection with this demographic.

Meet your Gen Z customers where they are

This generation values convenience and expects services to be integrated into their digital lifestyles effortlessly. By embedding insurance within products or services that Gen Z already uses and trusts—such as offering gadget insurance at the point of purchase of a mobile phone or laptop, for example—insurers can streamline the purchase experience. Insurance then becomes more relevant to the consumer, making it a natural part of their purchasing decisions, rather than an afterthought.

Moreover, embedding insurance in relevant contexts enhances its perceived value and relevance to Gen Z. Insurers can integrate insurance options into digital wallets or payment apps, making it easier for Gen Z to purchase them. Igloo, for instance, has collaborated with prominent regional fintech players like GCash in the Philippines, DANA in Indonesia, and ZaloPay in Vietnam, integrating their insurance products into platforms that Gen Z consumers are accustomed to.

Through embedding insurance, insurers demonstrate the value of protection in scenarios that resonate with Gen Z's experiences and priorities, positioning insurance as a supportive and proactive solution in their daily lives.

Gamify insurance to make it fun and rewarding

Gamification involves incorporating game design elements into non-game contexts to enhance user engagement, enjoyment, and motivation. For insurers, this means transforming routine tasks like policy management and claims processing into interactive activities, creating a more appealing experience for younger consumers.

Insurers can offer points, badges, and other incentives for behavior, which will work well for Gen Z who are motivated by rewards and recognition. For example, users can earn points renewing policies, referring friends, or completing a task. These points can then be redeemed for rewards, creating a sense of value and appreciation. This approach not only incentivizes engagement but also builds a loyal customer base.

Gamification can also address the complexity issues Gen Z faces with traditional insurance products by simplifying it through interactive tutorials, quizzes, and simulations. Users can complete these educational modules and earn rewards, making the learning process both informative and engaging.

Igloo believes insurers targeting Gen Z in Southeast Asia must simplify insurance, making it accessible and rewarding. By aligning with Gen Z's preferences, insurers can build trust and loyalty while expanding insurance penetration.

Marking Ignite by Igloo’s (“Ignite”) third year since its launch, regional insurtech Igloo has announced Ignite’s launch in the Philippines to help insurance sales intermediaries in the country digitalize and employ effective digital tools to enhance their sales processes, streamline client management, and provide superior customer service.

“We understand that insurance is still very relationship-based in the Philippines and most insurance sales here are being facilitated in person by insurance intermediaries and brokers. The lack of technology integration or a consistent platformized approach has posed multiple challenges - most of the process is being conducted via a single insurance intermediary, single product, single insurer, leading to limited ability to earning more and referring more product,” said Raunak Mehta, Co-Founder and CEO of Igloo. “By launching Ignite in the Philippines, Igloo is on a mission to help boost the efficiency and productivity of nearly 271,000 active life and non-life insurance intermediaries in the country."

Ignite is a digital platform that helps agents sell easier, faster, and more effectively. The app, launched in Vietnam in 2022 and Indonesia the following year has 42 products across 9 categories including Travel, Pet, and Motor protection plans from leading insurers. Ignite was recently awarded the Mobile App of the Year - Vietnam at the Insurance Asia Awards 2024.

Ignite’s features aim to foster seamless processes in interactions with customers and teams, including a user-centric interface for faster browsing, a fast quote system for quick premium calculations and quote generation, secure payment processing for confident transactions, and team and data management tools to streamline manual reporting and analysis. Additionally, they can track and report referral fees in real time directly to their bank accounts.

Insurance sales intermediaries are burdened with tasks such as filling out applications, issuing policies, processing premium payments, and settling claims, this is why digital tools like Ignite are essential for them to enhance their efficiency and help increase insurance penetration in the Philippines, which remains low at 1.75% despite overall growth in the financial sector.

“Through Ignite, we are addressing these pain points by consolidating product offerings from multiple insurance companies, helping them digitalize their processes, and providing a secure all-in-one platform for all they may need as insurance intermediaries,” Mehta explained.

New Ignite features to aid insurance partners

There is a growing emphasis on value-added services and financial advisory roles beyond selling. As consumers become more informed and discerning, insurance partners are transitioning from mere policy sellers to trusted advisors offering comprehensive financial planning and insurance solutions.

To support this shift, Igloo is introducing a new feature called iLearn, which provides sales agents with access to training content in various formats, including PDFs, infographics, videos, and quizzes. This comprehensive training will enhance their insurance product knowledge, technical skills, sales strategies, and customer handling skills, ensuring their success as trusted advisors.

“We see Ignite as a key product in furthering the region’s insurance penetration,” shared Mehta. “Despite rapid digitization, agents remain crucial in Southeast Asia's insurance sales. Ignite provides them with the tools and skills they need to succeed. We're also looking to improve the app with new product offerings and features. We've received very positive feedback from insurers across multiple markets, especially about Ignite's partner onboarding, management, and performance functionality, which benefits both general and life insurance sales."

Igloo has also launched a new microsite to aid partner recruitment, providing a centralized platform to attract and inform potential partners about the platform and sign up to become full-time and part-time Ignite insurance sales intermediaries.

As Ignite continues to evolve, Igloo continues to explore ways to offer insurers the platform as a tech solution, enabling their agents to digitize operations and enhance sales effectiveness. Through continuous innovation and the integration of new product offerings and features, Igloo aims to bridge the gap between traditional insurance practices and the digital future, ultimately ensuring that more people can benefit from reliable and affordable insurance coverage.

As part of its commitment to advancing financial inclusion and providing insurance for all, regional insurtech Igloo has partnered with consumer finance platforms in the Philippines to offer gadget protection products to shoppers. Igloo aims to extend access to insurance products and streamline the process of protecting items purchased through digital loans or alternative financing, whether online or in-store, providing consumers with a more accessible and convenient means to secure their purchases effectively.

“While the Philippines has made notable strides in financial inclusion, a considerable portion of the population remains unbanked. This translates to the inability to establish a credit history, which is essential for accessing financial products such as credit cards and loans,” said Roberto Vea, Commercial Lead at Igloo Philippines. “This is why the consumer lending industry has risen by leaps and bounds–it caters to the needs of the unbanked population by providing 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.

"At Igloo, we firmly believe in being where we can impact consumers most. That’s why we partnered with leading digital lending companies Skyro and Salmon alongside Etiqa to develop a product designed to protect installment purchases and ensure accessibility wherever our customers are,” Vea explained. “Now, they can protect their purchases wherever they buy it–whether through online merchants or offline stores, we’re giving them the peace of mind they deserve.”

In partnership with Etiqa, Igloo has introduced 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 products provide extensive coverage for device repairs, replacements, and loan repayments in the event of unexpected incidents that impact the customer. 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.

“We are committed to our mission of providing ‘insurance for all’ and that includes safeguarding purchases made by an underserved sector because it offers a layer of financial protection that they may not otherwise have access to. We will continue to work with our partners to develop products that cater to the diverse needs of the people we serve,” Vea ended.

Learn more about Igloo’s products by visiting iglooinsure.com

Regional insurtech Igloo has partnered with leading e-commerce platform Lazada to offer Filipino shoppers protection plans for their online purchases. This is part of Igloo’s continued mission to improve the online shopping experience through purchase protection products.

“E-commerce is a fast-growing industry in the Philippines and it’s safe to say that more and more Filipinos have embraced online shopping as a fast and convenient way to access a diverse range of products and services. There are currently 38.9 million e-commerce shoppers in the Philippines, a number that is expected to reach 55.8 million by 2025. Of these, approximately 25% of Filipinos who shop online do so at least once a month,” said Roberto Vea, Commercial Lead at Igloo Philippines. "As the number of Filipinos engaging in online purchases continues to rise, it becomes increasingly imperative to provide them with protection throughout their entire shopping journey, extending support even after they've received their products."

In collaboration with Igloo, Lazada has introduced three comprehensive online shopping protection products tailored for its electronics and beauty products. These protection plans are seamlessly integrated into the checkout process. Before finalizing their payment, customers will be presented with a tailored insurance plan specific to the item they are purchasing. This includes a transparent display of the associated premium, ensuring a clear understanding of the additional cost that will be integrated into their total transaction.

The Electronic Protection and Gadget Protection products ensures extensive protection for all kinds of electronic products and gadgets. from accidental and liquid damage, as well as loss due to theft or robbery, along with the added benefit of professional repair and service at authorized centers. Both products are underwritten by Etiqa Insurance. Specifically for non-electronic products, Igloo and Etiqa present Merchandise Protection which protects orders from accidental damage and theft.

Additionally, Product Liability Protection addresses adverse reactions to beauty products (cosmetics, lotions, bath essentials) purchased on Lazada. Underwritten by Liberty Insurance, coverage encompasses protection against chemical burns and severe allergic reactions (anaphylaxis) resulting from product use. Consumers availing of this product gain access to teleconsultations, medical reimbursements, and emergency hospitalization.

“At Igloo, our core mission revolves around facilitating easy, affordable, and convenient access to insurance products for consumers. We believe that insurance should be straightforward and accessible to everyone. In line with this commitment, our collaboration with Lazada has been carefully designed to ensure a seamless and hassle-free experience for individuals seeking protection for their online purchases,” Vea added.

Igloo’s partnership with Lazada is part of its goal to increase insurance penetration by offering microinsurance products designed to cater to the increasingly digital lifestyle of consumers in the Philippines and across the region.

Southeast Asia's insurance sector is undergoing a massive transformation to keep up with evolving market demands and maintain competitiveness. In the Philippines, where insurance penetration is at a mere 1.68%, the industry is grappling with persistent challenges such as complexities, outdated systems, and regulatory hurdles. However, amidst these obstacles, the industry is forging ahead with innovation and modernization with insurtechs emerging as crucial drivers of this change, fueling efficiency enhancements and elevating customer experiences.

Insurtechs have facilitated the seamless integration of insurance into the purchase journey across diverse platforms, including e-commerce, fintech, and logistics. They have also made it possible for brick-and-mortar establishments such as convenience stores to become viable distribution channels to enhance accessibility and awareness of insurance products, bringing offline consumers online. Insurtech firms likewise empower insurers to create personalized products, meeting the unique needs of underserved sectors and effectively managing emerging risks in digital consumers' lifestyles today–these include pet insurance, travel insurance, electronic and mobile phone protection, and even micro, small, and medium business insurance.

Amidst the industry's continuous transformation, insurtech Igloo identifies key trends poised to persist in 2024, further elevating efficiency throughout the insurance value chain and propelling the ongoing momentum of embedded insurance and personalization.

AI-Powered Data Analytics for Enhanced Risk Assessment

Artificial Intelligence (AI) is fast becoming the cornerstone of the insurance sector, revolutionizing the way companies analyze data and assess risks. This year, we can expect insurers to increasingly leverage AI for advanced data analytics, allowing them to gain deeper insights into customer behavior, preferences, and emerging risks. By harnessing the power of AI, insurers can enhance their risk assessment models, leading to more accurate pricing and better management of uncertainties in the ever-changing market.

Blockchain for smoother claims processing

Blockchain's sustained influence in insurance underscores its pivotal role in streamlining claims processing. The decentralized and transparent nature of blockchain ensures efficient, fraud-resistant transactions, expediting claims settlement, and reducing administrative costs. This enduring trend continues revolutionizing the insurance landscape by enhancing accuracy, trust, and operational efficiency.

Zero-Code Platforms for Swift Product Launch

The adoption of zero-code platforms is set to streamline and accelerate the launch of new insurance products across various channels. These platforms empower insurance companies to develop, modify, and deploy applications without extensive coding, significantly reducing the time and resources required for product development. This rapid deployment capability ensures that insurers can respond swiftly to market demands, offering a diverse range of products tailored to the evolving needs of consumers.

Digital Empowerment of Agents to Boost Productivity

As the industry becomes more digital, insurance agents are also set to benefit from advanced technologies that enhance their productivity and improve customer interactions. In 2024, insurers are expected to invest in empowering their agents with digital tools and resources, facilitating seamless communication, quicker policy issuance, and personalized customer experiences. The digitalization of agents also contributes to an overall positive customer journey, fostering loyalty and satisfaction.

Securing Against Climate Change Through Insurance

Climate insurance has emerged in response to the increasing frequency and intensity of climate-related events. As businesses, individuals, and governments grapple with the impacts of climate change, insurance has become a critical tool for managing the financial losses resulting from it such as damage to agriculture, infrastructure, and personal property. This trend exemplifies a proactive approach to mitigating economic losses, aligning with the shift towards sustainability and resilience in the face of climate uncertainties.

Igloo believes the rising demand for personalized insurance in our region is prompting insurers and embedded insurance ventures to embrace the latest tech trends. By seamlessly incorporating these innovations, the leading regional insurtech firm is not just keeping up; it's staying one step ahead, shaping the future of insurance for Southeast Asian communities. Its commitment is to remain at the forefront of industry shifts, ensuring its approach aligns seamlessly with the evolving needs of its valued customers.

Filipinos adore having pets. With 79% of Filipinos being pet owners, it’s no surprise that they find joy in taking care of animals, whether they're of the feathered, furred, or even scaled kind. But beyond the joy of companionship and protection, pets offer a multitude of health benefits, including increasing opportunities to exercise and socialize and even alleviating feelings of loneliness, allowing pet owners to live healthier, happier lives.

Pets offer unconditional love to their families, and as such, it is every pet parent’s responsibility to ensure that their pets are also living their best and healthiest lives. So if you’re planning to be a first-time pet parent or a pet parent looking for tips on how to care for your pets better, here are some tips to take into consideration.

Ensure that your pet can thrive in the environment you’re in

Yes, pets are cute and are a joy to have around but the first step for any prospective pet owner is to gauge if the pet you want to take care of can thrive in the environment you’re living in. In the Philippines, that means looking for pets that can live in tropical climates.

For furry animals like cats and dogs, this means looking for breeds that have the right kind of coats and body structures. Otherwise, pet parents should invest in creating the right environment for their pets, including proper temperature regulation and ventilation.

Feed your pets food that’s proper and healthy for them

A responsible pet parent should always do research on what to feed their pets. Like humans, pets can have intolerances, allergies, and even food that are poisonous for them. It’s important to learn about what a proper, balanced diet is like for your pet and this can be done through research and through consultations with your veterinarian.

Exercise your pets

Pets need exercise, as this not only helps them burn their energy but also keeps them limber and mentally and physically healthy, as in the case of dogs. Just make sure that the type of exercise you give your pets is appropriate for them, as different pets and breeds require different kinds of exercise.

Keep up with their checkups and vaccinations

Taking care of pets is very much like taking care of ourselves–they need proper nutrition, exercise, and regular medical checkups. According to the American Veterinary Medical Association, all pets should receive a physical medical examination at least once a year. These visits include regular vaccinations and treatments to ensure that they are healthy, as unlike humans, pets may not be able to communicate or show outward signs of disease or injury–things a trained veterinarian can spot and provide treatment and guidance on.

Invest in pet insurance

Routine vet visits and even unexpected medical emergencies can put strain on a pet owner’s finances, which is why it’s important to consider getting a pet insurance product like Pet Insure,

Pet Insure is a customized non-life product specifically designed to protect the health of dogs no matter their breed, allowing dog parents to fully address the needs of their fur babies, including emergencies and accidents.

Regional insurtech Igloo, together with Malayan Insurance and GCash, created Pet Insure to afford owners convenience and security as it offers three-in-one coverage that includes medical reimbursement for veterinary care up to a maximum of P100,000; owner's liability coverage of up to a maximum of P250,000; and a personal accident cover for dog owners worth P50,000 for as low as P650 for a one-month coverage on the GCash GInsure marketplace.

Having pets is a huge responsibility, and every pet owner must recognize the importance of ensuring that their pets are healthy, thriving, and happy. Learn more about how Pet Insure can protect your pet here.

Filipinos love to shop online–a recent report by data and analytics firm GlobalData showed that nearly 90% of Filipino consumers have shopped online in the last six months. This has put the growth of the e-commerce market at 31.3% in 2022 and is expected to grow by 22.9% and reach a value of P615.7 billion within the year.

Along with the widespread adoption and convenience online shopping offers comes the risk of frauds–from fake products to sellers who send defective products or send no product at all. 61% of Filipinos reported being targeted and/or victims of fraud in the past three months, according to a Q4 2022 Consumer Pulse Study by consumer credit reporting agency, TransUnion. This is a significant increase from the 55% reported in Q3 of the same year. While phishing remained the most commonly reported fraud scheme (51%), third-party seller scams on legitimate e-commerce sites came in third (33%), indicating a concerning trend that puts Filipino online shoppers at risk.

So before you whip out your smartphone and click buy on that item you’re itching to get your hands on, here are a few tips you can do to protect your “budol” finds and your hard-earned money from online shopping frauds:

Buy from official stores or legitimate sellers

Sometimes when browsing through online stores, you’ll undoubtedly encounter a deal that’s too good to pass up but before you bite the bullet and check out, take a few seconds to check the seller and make sure that they are legitimate sellers or official stores.

Buying from official stores and legitimate sellers ensures that the products you’re buying are authentic and are of good quality. Plus, some e-commerce platforms also offer additional perks when you buy from these stores including warranties, free shipping, and even money back guarantees.

Check the reviews

You’ll undoubtedly come across multiple products being sold by different stores online and the sheer number of options can be overwhelming. One way to weed out the best deals and items is to check reviews from previous buyers.

Check the review section of the product you’re eyeing on e-commerce platforms or if you’re buying from Facebook Marketplace and other social media pages, see if you can find a business page where previous customers have left reviews.

Reviews are helpful in helping you make informed decisions on your purchase–if the item is worth buying, if the seller is legitimate, cooperative, and responsive, or if there are any watch outs like long delivery lead times or trouble when it comes to repairs, returns, or refunds.

Compare prices

If you’re on the lookout for a good deal, it never hurts to compare prices. Several sellers will have the same exact product on sale and it’s good to take a second and look at other sellers before deciding on where to buy.

Some stores may offer the same price but throw in other perks like free shipping for no minimum spend, extended warranties, a small freebie, or the lowest price offered on the platform. A word of caution on super low prices, if it seems too good to be true, it probably is, and it would be beneficial to check if the seller is legit and the products reviews before deciding where to buy.

Get an online shopping insurance to protect your purchases

One of the main advantages of shopping online is the time it saves from selection to purchase–you don’t need to go to a physical store and buy an item as with a few clicks, the item will be on its way to you within a few days.

However, its main advantage can also be a disadvantage as you’re buying something sight unseen–you really can’t check the quality of the purchase until it’s already delivered. Even if you follow all the steps to make a good purchase, sometimes you may still receive a bad or fake product, or it may not even show up at all.

Designed to protect consumers from e-commerce scams and frauds, Igloo and GCash collaborated on an Online Shopping Insurance that provides coverage for undelivered goods and uncontactable sellers, partial delivery or fake goods for up to P150,000 for as low as P15/month.

Policy holders can file multiple claims until they reach their benefit amount after which the policy expires and will require a shopper to apply for another policy.

By following these steps, you can reduce your risk of falling victim to online shopping fraud and scams, safeguard your “budol” finds and shop worry-free.