Singapore-based insurtech Igloo and Dana, an Indonesian e-wallet operator, launched Dana Rain Protection in Indonesia on September 29.

The parametric weather insurance product is built into Dana’s Quick Response Code Indonesian Standard (QRIS) payment flow and pays users 50,000 rupiah (US$2.8) when rainfall at their location reaches 2.5 millimeters or more during the coverage period.

Igloo said each policy costs 500 rupiah (US$0.028). Claims are validated using satellite precipitation data and users’ Global Positioning System (GPS) coordinates, without paperwork or human review.

The launch adds parametric insurance to a partnership that already offers five insurance products through the Dana app.

It also reflects insurers’ push into digital distribution in Indonesia, where insurance penetration stood at 2.7%, according to Igloo.

Bank Indonesia defined QRIS as the national standard for QR code payments, so the insurance product sits within a standard retail payments channel.

The product also enters an Indonesian market where parametric weather cover has already been explored, while the Financial Services Authority’s 2023-2027 insurance roadmap aimed to strengthen and develop the sector.

🔗 Source: Igloo

Recent Igloo developments