NTUC Income makes first regional foray with launch of micro-insurance Droplet in 3 markets

NTUC Income is making its first foray into 3 South-east Asian markets with the launch of digital-first micro-insurance Droplet.

Droplet is a first-of-its-kind micro-insurance that covers commuters against price surges on ride-hailing platforms on rainy days. It was first launched in Singapore in 2018 in response to a consumer pain point.

For the rollout in the region, Income has partnered PT Central Asia Financial in Indonesia; Post and Telecommunication Joint Stock Insurance Corporation in Vietnam; and VSure Tech Sdn Bhd in Malaysia. Droplet is being launched in 4 cities - Greater Jakarta, Hanoi, Ho Chi Minh City, and Kuala Lumpur.

The partnerships are built on Income's insurance-as-a-service (IaaS) model that enables the company to take digital-first business models to partners overseas, enhance their speed-to-market, and equip them with the right capabilities and tools to capture new customer segments and revenue streams.

In 2020, the total market value of ride hailing in South-east Asia was estimated at US$11 billion.

The market size for digital insurance is expected to reach US$7.6 billion in South-east Asia by 2025. Digital consumption has also accelerated with 9 in 10 consumers intending to continue using digital services in the future, according to a study by Google, Temasek and Bain & Co. A study by Facebook and Bain expects almost 80 per cent of the region's population to become digital consumers by end-2021.

Since the inception of Income's Digital Transformation Office over 4 years ago, Income has rolled out a number of business models such as micro-insurance SNACK; subscription insurance TRIBE; and usage-based insurance Milesurance, Gigsurance and Freightsurance.

Andrew Yeo, Income's chief executive, said: "Our foray overseas opens a new chapter of growth for Income and is a natural next step in our strategic growth plan. The market potential of countries like Indonesia, Malaysia and Vietnam is huge given their relatively young populations and high mobile penetration rates. Considering their large geographical distribution areas, I believe these markets are especially primed for new digital insurance propositions that are enabled by technology."

Peter Tay, Income's chief digital officer, said: "We understand that homegrown businesses know their local consumers best, hence the partnerships are a win-win for us. By forming strategic alliances with like-minded local partners, it allows us to understand the demands of Asia's digital-first population first-hand, and most importantly better relate insurance to customers, and make insurance accessible to more."