With 11.11, Black Friday, and Cyber Monday coming up, consumers face increased exposure to fraud and other online shopping risks.
As the shopping season begins, award-winning regional insurtech Igloo encourages safer online shopping experiences amidst rising cybersecurity threats in Southeast Asia. While retailers have been driving sales through in-store promotions, the rise of e-commerce also provided additional revenue streams for retailers. With more people shopping online, Igloo seeks to protect the shoppers that drive the US$ 123 billion e-commerce industry.
“With the increase in the number of online sales comes the heightened risk of fraud. In Q4 of last year, Asia Pacific saw an estimated US$700 million of fraudulent sales. Consumers expect businesses to protect them while shopping online”, shared Raunak Mehta, Co-Founder and CEO of Igloo. “There’s a growing demand for safety and assurance measures, in line with more demand for general cybersecurity.”
This has prompted Igloo to develop solutions to protect online shoppers in Southeast Asia throughout their purchase journey – from checkout to after-sales – along with their strategic partners. In the Philippines, Igloo partnered with digital wallet GCash to offer Online Shopping Insurance and safeguard customers against online shopping fraud and scams such as undelivered goods, uncontactable sellers, partial delivery, and fake goods. The Online Shopping Insurance starts at P15/month (US$ 0.27) for coverage of up to P150,000 (US$ 2,733).
Igloo also works with large e-commerce platforms such as Lazada and Shopee to provide embedded insurance, where consumers can purchase protection from the platform itself at checkout.
Another key element of the shopping season is the surge in sales of electronic devices like smartphones. Smartphone sales in Southeast Asia peaked in Q4 of both 2021 and 2022, on the back of new launches and promotions. As more consumers conduct essential day-to-day activities on smartphone apps, Igloo also recognizes the need to insure these prized possessions. The insurtech collaborates with multiple leading retailers across the region such as Lazada in Thailand, Malaysia, and the Philippines to insure smartphones. It also recently partnered with leading smartphone brands OPPO and realme to offer screen protection, warranties for accidental damage, and extended warranties. Consumers shopping for gadgets and smartphones on Shopee and DANA can also purchase protection directly at checkout.
“As we celebrate during the shopping season, we hope to provide shoppers with peace of mind, knowing that their mobile phones and gifts purchased for their loved ones are protected”, added Mehta. “With the goal of making microinsurance accessible in Southeast Asia, we will continue to find the right partners and extend our offering to more customers.”