Grab backer Eurazeo sets aside $215m for SEA insurtech fund

France-based investment firm Eurazeo has set aside US$215 million to back insurtech players in Southeast Asia as it eyes the digital boost on online policy purchases in the region.

The fund is targeting growth-stage startups at their series B or C rounds with check sizes between US$10 million and US$20 million, said Albert Shyy, Eurazeo’s newly appointed managing director for venture in Singapore. The company has already led Indonesia-based Qoala’s US$65 million round.

Eurazeo managing director Albert Shyy / Photo credit: Hubert Burda Media

This comes as more consumers are expected to buy insurance policies online in the next few years despite the region generally having a low penetration.

“At the same time, we are seeing digitalization accelerate growth and adoption as in many industries,” added Shyy, noting that more data will impact risk, pricing, and product creation while also improving access to consumers in rural areas.

Indonesia and Thailand are some of the fund’s priority countries. Shyy also considers Vietnam and the Philippines as “underpenetrated markets with strong potential for growth.”

Eurazeo has 32 billion euros (US$34.3 billion) in assets under management. In Asia, it has offices in Singapore, China, and South Korea. It has 530 companies in its portfolio including Grab, which Eurazeo backed in 2019.

Grab saw its share price drop in March when its Q4 2021 numbers recorded widening net losses.

See also: As Grab shareholder lock-ups expire, is fresh round of selling imminent?