PasarPolis becomes Indonesia’s first full-stack insurtech ecosystem with new strategic partnership
PasarPolis, an Indonesia-based insurtech firm, has become Indonesia’s first official full-stack insurtech ecosystem, giving the company the ability to both distribute and underwrite its own digital insurance products.
This achievement comes after PasarPolis sealed a strategic collaboration with local insurance firm Tap Insurance, which has received a full license from Indonesia’s Financial Authority (Otoritas Jasa Keuangan/OJK to operate as an insurance underwriter, PasarPolis said in a statement on Thursday.
“The insurance gap and unequal insurance distribution continue to be major challenges in Indonesia – and PasarPolis is strongly committed to solving this,” said Cleosent Randing, Chief Executive Officer and Founder of PasarPolis.
According to him, the firm’s full-stack insurtech ecosystem allows it unparalleled flexibility in innovating insurance, making the customer experience 10 times better by promising a frictionless, simpler, and more affordable process for all.
“We believe that with technology, we’re in a prime position to effectively bridge the insurance gap by providing a wider range of suitable insurance products and services, and improving access to affordable insurance protection across all market segments, including the uninsured and the underserved of society,” he added.
According to the statement, PasarPolis will use advanced technologies and data to streamline its underwriting and claims processes, making it easier and more cost-effective to create insurance products and provide a seamless experience for consumers.
Its ecosystem partners such as Tokopedia, Gojek, Traveloka, Xiaomi, and IKEA Indonesia will also have the opportunity to design custom insurance products using the full-stack ecosystem.
According to the statement, the Indonesian insurance industry is still largely traditional, and most players find it difficult to digitize. Only a small number of insurance providers are able to use digital channels to offer insurance, but these digitalization efforts only stop there.
It said PasarPolis goes one step further by not only using digital means of distribution but also powering its entire underwriting and claims processes with advanced technologies combined with data.
According to the statement, Indonesia is also among one of the world’s most underinsured countries, with an insurance penetration rate of approximately 3.18 percent in 2022. This puts the nation at high risk of further deaths and losses, especially given how the country is frequently assailed by natural catastrophes that are further exacerbated by climate change.
However, it said the high cost of insurance premiums remains one of the most prohibitive factors to the uptake of insurance, together with complicated claims processes and access to products.
It also said traditional underwriting processes and high levels of human labor make it challenging for underwriters to create highly-affordable insurance products that are desperately needed in underinsured nations like Indonesia.
Unlike other incumbents, it said PasarPolis harnesses innovation by utilizing a digital means of distribution and advanced technologies such as machine learning combined with data analytics to streamline their entire underwriting and claims processes, which will result in lower overall costs and allow the company to lead the industry.
As the top insurtech provider in Indonesia, it said PasarPolis has a wealth of experience in the insurance industry.
The company has over 60,000 registered agents and works with over 50 insurance partners and 40 leading ecosystem partners to serve over 80 million customers and issue over 1 billion policies between 2019 to 2021.
In 2022, the company saw strong growth, with 87 percent of total claims settled within 24 hours for non-credit insurance.
For device protection insurance specifically, PasarPolis was able to settle 77 percent of all claims within two hours using its technology.
PasarPolis said consumers can expect to see a lot more offerings in 2023, primarily affordable, sensible products and premiums through PasarPolis.
With the launch of the Unified Claims Interface (POLI) and the Tap Insure app, it said customers will find it a breeze to file claims across multiple channels such as email and mobile app.
“It’s not just a matter of cost, but whether underwriter firms are willing to launch affordable products for Indonesians. PasarPolis is determined to answer the main challenges posed, and serve the vast underinsured so that all levels of society in Indonesia can be insured,
“We want to make the entire process of buying and claiming insurance delightful, with everything just a tap away”, added Randing.
Founded in 2015, PasarPolis is Southeast Asia’s insurance technology (Insurtech) company which aims to democratize insurance by empowering all consumers to easily access affordable insurance products, and using innovative technology to provide smooth user experience from purchase to claims.
Since its launch, PasarPolis has issued over 1B policies and has raised over $59 million as the first insurtech company backed by three Indonesian unicorns, including Gojek, Tokopedia, and Traveloka.