Igloo’s Innovative Insurance Solutions for Philippine Farmers

Igloo, an insurance technology firm, is making significant strides in providing innovative insurance solutions to farmers in the Philippines. Having raised $36 million for expansion, the company is set to introduce a Weather Index Insurance (WII) product, a blockchain-based insurance specifically designed for farmers. This product will offer payouts based on weather conditions like rainfall, thereby protecting farmers from the financial impact of extreme weather events affecting crop yields.

The Philippines, being prone to typhoons, suffers considerable agricultural losses each year. Igloo’s introduction of blockchain-based insurance aims to alleviate the financial strain faced by farmers when their crops are damaged by typhoons. Mario Berta, Igloo’s Country Manager for the Philippines, notes that small-scale farmers, crucial to the Philippine economy, often live in poverty and are vulnerable to debt accumulation due to crop destruction caused by floods and droughts.

Igloo emphasizes the need for automated crop insurance, enabling faster payouts and quicker recovery for farmers. The Weather Index Insurance automates claims using smart contracts on the blockchain, eliminating the need for time-consuming manual claim verification. Payouts are triggered automatically when predetermined weather thresholds, such as flood or drought levels, are met. This process not only speeds up claims processing but also adds transparency, consistency, and unbiasedness to transactions.

Currently available in Vietnam, the Weather Index Insurance is poised to roll out in agriculture-driven Southeast Asian countries, including the Philippines, Indonesia, and Thailand. Igloo is engaging with potential partners to underwrite and distribute the product in the Philippines, targeting underserved farmers in Luzon, Visayas, and Mindanao. The company recognizes challenges like low insurance penetration and limited access to digital services in rural areas and plans to collaborate with rural banks, farmer’s cooperatives, and government agencies to address these issues.

Igloo’s approach to insurance leverages technology to make insurance accessible and affordable. The company offers digital insurance solutions underwritten by partner insurance companies, distributed through channels like e-commerce platforms and mobile wallets. It utilizes big data, real-time risk assessment, and automated claims management to create B2B2C insurance solutions.

In summary, Igloo’s initiative in introducing Weather Index Insurance in the Philippines reflects an innovative approach to supporting the agricultural sector. By utilizing blockchain technology and automating the insurance process, the company aims to reduce the vulnerability of farmers to adverse weather conditions, increase their resilience to natural disasters, and contribute positively to the agricultural economy of the Philippines.