Southeast Asian insurtech Igloo has secured an additional $27mn in an extension to its Series B funding round, which was announced earlier in the year.
Cathay Innovation led Igloo’s initial Series B round in March, providing the Singapore-based insurtech with US$19mn in capital. But now the company has raised another US$27mn led by investors including BlueOrchard’s InsuResilience Investment Fund II, WWB Capital Partners and Finnfund.
Previous backers La Maison and Cathay Innovation are also returning this time round.
The money will support Igloo as it grows its engineering capacity and infrastructure, seeks to acquire intermediaries as part of its expansion, and launches new products such as index-based crop insurance for customers in Southeast Asia.
Igloo has already cemented partnerships with over 55 companies in seven countries, facilitating over 300mn policies and increasing gross written premiums (GWP) 30-fold since 2019.
The insurtech recently launched its first parametric weather index insurance in Vietnam – one of the five largest rice exporting countries, where weather can have a significant impact on crop yields.
Utilising blockchain-based smart contracts, the product automates claims payouts calculated using pre-assigned values for losses due to weather events or natural catastrophes.
Igloo claims it is Vietnam’s first parametric insurance and the company’s first integration of smart contracts.
Ulla-Maija Rantapuska, Investment Manager at Finnfund: ”Finnfund is devoted to increasing the insurance coverage in emerging markets through its investments. We believe that digital insurance solutions can help break some of the barriers to inclusive insurance.”
by Peter Sonner