How Indonesian insurtech is changing the game

The words “insurance” and “love” are not commonly used together in a sentence. Yet a new generation of insurtech firms in Indonesia is trying to change the public’s perception of what many begrudgingly view as a necessity.

Cleosent Randing, founder and CEO of PasarPolis, wants to “make insurance delightful” and “bring the words insurance and love closer together.”

Meanwhile, Fuse founder and CEO Andy Yeung hopes that one day, people will be in a position where “whatever or whoever you love can get insurance protection easily.”

Cynics may dismiss this as typical founder-speak, but these lofty goals are an indication of the scale of the challenge that these insurtech firms face.

Consumption of insurance is much less frequent than ordering a ride or making an online purchase. Moreover, unlike a hungry consumer who looks forward to receiving the food she orders, most would rather not find themselves on the receiving end of an insurance payout.

The problem is even more pronounced in a country like Indonesia, where a lack of financial literacy and mistrust of financial institutions hinders greater insurance penetration.

However, it is precisely in emerging markets like Indonesia where insurance can really make a difference in the lives of everyday people. Harshet Lunani, founder and CEO of insurtech business Qoala, notes that “a single event can knock a family out and put them in poverty.”

Indonesia’s leading insurtech companies

PasarPolis, Fuse, and Qoala are the three Indonesian insurtech startups that have raised the most amount of money. How they develop will shape insurance in Southeast Asia – Indonesia has the biggest market potential, and these players have all expanded regionally.

While Fuse and Qoala’s co-founders have backgrounds in the insurance industry, PasarPolis’ Randing does not. Before starting the firm, he founded and sold a performance marketing company to Japanese advertising giant Dentsu.

But Randing is not fazed. “It’s better. I actually want to hire people who are not from insurance because I want to disrupt it,” Randing tells Tech in Asia.

Investors do not seem too concerned either. Notably, PasarPolis has raised funding from Indonesian tech giants like Traveloka, Tokopedia, and Gojek, as well as Chinese tech company Xiaomi. These investors played an active part in the startup’s growth through partnerships.

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