Igloo and Dana launch weather insurance in Indonesia

Singapore-based insurtech Igloo and Indonesian e-wallet operator Dana have launched a new weather insurance product in Indonesia. The product, named Dana Rain Protection, is integrated directly into Dana's QRIS payment flow.

This parametric weather insurance automatically pays users 50,000 Indonesian rupiah (approximately US$2.8) if rainfall at their location reaches 2.5 millimeters or more during the coverage period. Each policy costs just 500 rupiah (approximately US$0.028).

Claims are processed automatically without paperwork or manual review. Payouts are validated using satellite precipitation data and the user's GPS coordinates, ensuring a swift and efficient claims process.

The launch expands the partnership between Igloo and Dana, which already offers five other insurance products through the Dana app. It also reflects the insurance industry's push towards digital distribution in Indonesia, a market with a low insurance penetration rate of 2.7%.