Southeast Asian regional insurtech firm Igloo has partnered with Telkomsel, Indonesia's biggest telecommunications service provider, to introduce a series of innovative insurance services in a move that, the companies say, underscores the growing role of embedded insurance in Asia-Pacific’s mobile-first markets.

Telkomsel becomes Igloo’s second major telecommunications partner, following its collaboration with a major telco provider in the Philippines last year.

The partnership brings innovative insurance products to more than 150 million Telkomsel customers in the country, including cybersecurity, gadget, travel and phone screen protection. Customers can easily acquire these products while topping up their credit or buying data packages on the MyTelkomsel app.

The launch of these products, the companies point out, aligns with the changing lifestyles of Indonesians, characterized by increased digital adoption among a digitally-savvy middle class and a growing propensity towards online purchases.

Indonesia, according to Kadence’s Indonesia Market Research, boasts over 210 million internet users and has a mobile penetration rate of 77% – driven by affordable smartphones and competitive data plans. Meanwhile, 73% of e-commerce transactions are made via mobile devices.  

A first phase of this collaboration sees the launch of the following products for Telkomsel prepaid subscribers, with more slated for subsequent rollouts:

• Cybersecurity insurance: from 500 rupiah ( 3 US cent ), providing coverage for identity theft protection up to 1,000,000 rupiah and electronic fund transfer fraud up to 1,000,000 rupiah
• Gadget insurance: from 1,000 rupiah providing coverage for theft and device protection up to 500,000 rupiah
• Phone screen protection insurance: from 200 rupiah, providing cover for repair prices up to 200,000 rupiah
• Travel insurance: from 500 rupiah per day when purchasing a roaming package, providing coverage for medical expenses, personal accident and flight inconveniences.

Among the suite of products is cybersecurity insurance, which is timely and essential given the rise in cyber-related fraud and attacks. Indonesian, according to cybersecurity company Check Point, experienced an average of 3,300 cyberattacks per week in early 2023, the highest in Southeast Asia.

Another report from SOCRadar in 2024 mentioned that Indonesian customers are experiencing over 4,406 distinct phishing attacks. As cyber threats become more sophisticated, digital protection is increasingly necessary.

“Embedding insurance protection on the MyTelkomsel App with Igloo reflects our commitment to enhancing the digital lifestyle of Indonesians by offering convenient, secure and relevant protection that goes beyond connectivity,” adds Alfian Manullang, Telkomsel’s vice-president of data solutions and digital financial services. “With more Indonesians spending time and money online, this strategic and innovative partnership reinforces our commitment to not just connect, but also protect our users by empowering them with simple, secure and accessible digital insurance solutions.”