Southeast Asia’s insurance industry is standing at a pivotal moment. Despite robust economic growth and increasing awareness around financial protection, insurance coverage across the region remains surprisingly low. Penetration rates tell the story: just 1.78% in the Philippines, 2.8% in Vietnam, and 1.4% in Indonesia.
A major roadblock? Legacy systems. Outdated infrastructure continues to hinder efficiency in critical areas like underwriting, claims processing, and customer service. These inefficiencies drive up costs and make insurance products less accessible, particularly for low- to middle-income consumers. Complicating matters further is the region’s fragmented insurance landscape, comprised mostly of small, independent providers that often lack the scale or resources to adopt modern technology.
“In contrast to global insurance giants who’ve built robust digital ecosystems, Southeast Asia’s insurance players are largely siloed and under-digitalized,” said Raunak Mehta, Co-Founder and CEO of Igloo. “After nearly a decade in the space, we’ve seen that digital transformation is no longer optional—it’s essential. Without it, the industry risks falling further behind, leaving millions without access to affordable insurance. Accelerating this shift is key to closing the protection gap and reaching Southeast Asia’s fast-growing middle class.”
A new era: Digital-first insurance
Igloo, a leading insurtech in the region, is spearheading this transformation. With over 650 million policies issued and more than 75 active partnerships, the company offers embedded insurance solutions that seamlessly integrate with everyday platforms and services. This end-to-end approach simplifies policy purchase, application, and claims management—streamlining processes for providers while making insurance more approachable and intuitive for consumers.
Through collaborations with major digital platforms such as Lazada, Shopee, and GCash, Igloo brings tailored insurance products directly to where users already shop, pay, and interact online. In the Philippines, partnerships with telecom provider Smart, digital finance platforms Skyro and Salmon, and B2B enabler Growsari help extend insurance access across multiple industries and customer segments. This frictionless model lowers barriers to entry and brings insurance to people who might not have otherwise considered it.
Powering sales with tech
Igloo’s Ignite platform enhances insurance sales for intermediaries with a user-friendly interface, instant quote generation, secure payments, and real-time tracking of referral fees. Currently live in Vietnam, Indonesia, and the Philippines, Ignite supports 42 products across nine categories. Its innovation has earned recognition too—it won Mobile App of the Year in Vietnam at the 2024 Insurance Asia Awards.
Breaking free from legacy systems
The next frontier? Replacing outdated systems with flexible, scalable, and modular platforms.
“We believe the biggest value we can provide is helping insurers shift to truly agile, customer-first digital models,” Mehta said.
Igloo’s no-code platforms allow insurance providers to modernize operations without the complexity of traditional tech overhauls. From setting underwriting rules and launching new products to integrating with distribution channels and tracking performance, insurers can now operate more efficiently and deliver more personalized customer experiences. Whether it’s building insurance marketplaces or empowering agents through smarter tools, Igloo is redefining how insurance can be delivered across Southeast Asia.
“At Igloo, we’re not just digitizing for the sake of it,” Mehta concluded. “We’re enabling insurers to scale, innovate, and better serve their customers in a rapidly digital world. Scalable technology is the key to unlocking the future of insurance in this region.”
To learn more about Igloo’s offerings, visit iglooinsure.com.