Indonesia PasarPolis can now insure its own products, making it one of Indonesia’s first full-stack insurtechs. This means that PasarPolis can offer new products and collaborate with partners such as Tokopedia, Gojek, Traveloka, Xiaomi and IKEA Indonesia to create tailor-made insurance policies.
The strategic partnership with Tap Insurance enables PasarPolis to conclude insurance products. Tap Insurance has been granted a full insurance underwriting license from OJK (Otoritas Jasa Keuangan, or the Financial Services Authority of Indonesia).
Cleosent Randing, the founder and CEO of PasarPolis, told australiabusinessblog.com that the first products of the strategic partnership will include fire and auto insurance.
Founded in 2015, PasarPolis has raised over $59 million in total to date and is backed by investors such as Gojek, Tokopedia, Traveloka, LeapFrog and SBI. The policy includes travel, contents, logistics, electronic devices, life and auto insurance.
PasarPolis currently has 60,000 registered agents in Indonesia and cooperates with 50 insurance companies. It says it served more than 80 million customers and issued 1 billion policies between 2019 and 2021, partnering with 40 companies to distribute products.
Distribution partners include Shopee, Tokopedia, Gojek and Xiaomi. Customers can add microinsurance to their purchases through their platform for approximately 5,000 to 20,000 Indonesian Rupiah (or 32 cents to $1.29 USD).
PasarPolis can be scaled as it uses machine learning and data analytics to make the underwriting and claims process faster and more cost effective. It says that 87% of non-credit insurance claims in 2022 were settled within 24 hours. PasarPolis’ technology includes algorithms that automate the claims approval process, based on data submitted by customers, such as photos, chronology, and date and time of events. The algorithm then filters information to PasarPolis’ faster ‘green’ channel.
The company’s most recent launches include the Unified Claims Interface (POLI), which allows customers to submit multiple claims through various channels, such as email, WhatsApp, SMS and the PasarPolis mobile app.
Randing says the goal of PasarPolis is to reduce the cost of insurance and increase the penetration rate in Indonesia, where the insurance penetration rate is only 4% as of 2022.
“We think that inclusive insurance is an essential addition to the social basics,” he said. “Especially health protection in line with the growing concern of many to protect the health of their families, especially during the pandemic.”