JAKARTA (TheInsiderStories) - An insurtech firm, PasarPolis, announced has raised US$5 million in equity finance from International Finance Corporation (IFC), the company announced today. With this new funding is hope will help to boost the delivery of micro-insurance and affordable insurance protection to the nation’ most vulnerable, especially the informal workers.
“At IFC, we are excited to make this investment in PasarPolis, Southeast Asia’ largest insurance technology platform that is gearing up to expand its digital distribution channels, making insurance more accessible and affordable especially for the underserved and those living in remote areas,” said Azam Khan, the country manager for Indonesia, Malaysia and Timor-Leste in an official statement.
Last year, PasarPolis, has closed a Series B round with total amount $54 million from Chinese’ Xiaomi, Go-Ventures, LeapFrog Investments, SBI Investment, AlphaJWC, and Intudo Ventures. The company has been present in the country since 2015, founded by Cleosent Randing and Michael Saputra.
Now the office has been operates in Indonesia, Thailand, and Vietnam. The number of insurance policies has grown 80 times per month since August 2018 and partners with more than 30 insurance providers. The new funding, said Randing, will be used on its artificial intelligence-based, which allows the PasarPolis to customize insurance products for different industries.
Currently, the gap in insurance access is still a crucial issue in various Southeast Asian countries, including Indonesia, Vietnam and Thailand. The insurance penetration rate in the region is still at 3.6 percent. Responding to these challenges, the tech firm in Indonesia and Southeast Asia, strives to expand insurance access in a more inclusive manner for all levels of society, including people in remote and underprivileged areas.
After operating for five years, now PasarPolis has been able to provide insurance protection to as many as 11 percent of the Indonesian population or around 30 million Indonesians. This is a positive achievement, amidst the general insurance inclusion in Indonesia which has only reached less than 2 percent level.
Randing noted, 90 percent of their consumers are those who have never purchased insurance policy or first-time buyers), and 40 percent of PasarPolis-holders are workers in the informal sector, including online motorcycle, taxi drivers, couriers, and online MSME players.
It also plans to invest in a new platform for agents, PasarPolis Mitra, was launched in May. Now, the insurtech firm has a network of about 10,000 agents across the archipelago. PasarPolis plans to increase insurance penetration and literacy across the region, including Vietnam and Thailand in 2021.
“From an industrial point of view, Vietnam and Indonesia have similar criteria for the insurance market, although awareness of insurance in Vietnam is still relatively low compared to Indonesia, or Thailand which is maturing fast. We are optimistic that we can be the motor of the insurtech industry in ASEAN region and continue to answer the insurance gap challenge in this region,” concluded by Cleosent.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
