Tokopedia partners with insurtech firm to offer general insurance products

Indonesian ecommerce giant Tokopedia will be carrying general insurance products on its platform through its partnership with insurtech platform Fuse.

The strategic tie-up will see Tokopedia work mainly with Fuse to reach users, said Fuse founder Andy Yeung. Insurance company Simas Insurtech will support Fuse in providing the general insurance products to Tokopedia.

“By collaborating with strategic partners, Tokopedia will continue to add digital innovations and expand access to Tokopedia insurance products to help more people support their everyday needs,” said Marissa Dewi, investment and insurance head for Tokopedia.

Indonesia-focused VC firm East Ventures backs both Fuse and Tokopedia. This month, Fuse raised its series B round led by GGV Capital.

According to an official from the Financial Services Authority of Indonesia (OJK), the country’s insurance penetration is currently at 3.1% of its gross domestic product.

“We will work closely with Fuse to optimize and shorten the new insurance product creation cycle, to leverage Fuse market intelligence to create a better market-fit for the products,” said Teguh Aria Djana, CEO of Simas Insurtech.

Previously, Simas Insurtech also collaborated with Indonesian e-wallet Ovo to offer motorcycle insurance.

Currency converted to US Dollar from Indonesian rupiah: US1$ = IDR 14,257.20