INSURANCE TECHNOLOGY firm Igloo has partnered with Lazada to introduce online shopping protection plans in response to the increasing number of e-commerce transactions in the 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,” Igloo Philippines Commercial Lead Roberto S. Vea said in a statement on Monday.
Customers shopping on Lazada’s platform may now assess eligibility for protection plans, review premium costs, and delve into policy specifics during the checkout process.
The insurance offerings on Lazada encompass electronic and gadget protection, merchandise protection, and product liability protection.
Electronic protection and gadget protection plans cover accidental damage, liquid damage, theft, and loss for electronic devices, accompanied by professional repair services at authorized centers.
Merchandise protection, in collaboration with Etiqa Philippines, safeguards non-electronic purchases against accidental damage and theft, enhancing consumer confidence in online transactions.
Igloo plans to introduce a fourth insurance plan in December, focusing on non-electronic products’ accidental and liquid damage protection, diversifying coverage options for shoppers.
Product liability protection, underwritten by Liberty Insurance, addresses adverse reactions from beauty products, ensuring customers have access to medical consultations, reimbursements, and emergency hospitalization if necessary.
According to Mr. Vea, the premiums for these protection plans typically amount to around 5-6% of the product cost, maintaining affordability while delivering comprehensive coverage.
In addition to the Lazada partnership, Igloo previously collaborated with GCash to extend insurance coverage to users for transactions across various online marketplaces, including Lazada, Shopee, Viber, and Facebook.
The surge in e-commerce activity is reflected in the 38.9 million current e-commerce shoppers in the Philippines, projected to reach 55.8 million by 2025, according to Locad.
GlobalData forecasts e-commerce sales to escalate to P968.9 billion ($19 billion) by 2026, highlighting the significant growth potential in the online retail sector. — Aubrey Rose A. Inosante