Igloo and DANA launch parametric rain insurance in Indonesia

Insurtech firm Igloo and Indonesian digital wallet provider DANA have launched ‘DANA Rain Protection’, a parametric weather insurance product designed for general consumers. Priced at IDR 500 (approximately $0.03) per policy, the product aims to mitigate the daily disruptions caused by rain, such as surging ride-hailing costs, cancelled outdoor activities, and lost foot traffic for small merchants.

The insurance operates through automation, triggering compensation when rainfall at a user's location reaches 2.5mm or more during the coverage period. Unlike traditional insurance, it requires no physical documentation or manual human assessment; instead, claims are validated automatically using satellite precipitation data and the user’s GPS coordinates. This parametric model reduces administrative costs by relying on measurable external events rather than manual loss adjustments.