An insurtech revolution brews in Indonesia and StashAway’s latest brouhaha

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Hello there,

It’s high time that innovation finds its way to the insurtech sector.

So far, disruption in the industry has largely been piecemeal. I speak for myself and people around me when I say that most of our insurance purchases still happen through a very human agent.

In this week’s Big Story, my colleague Simon looks at rising insurtech firms in Indonesia and how they’re attempting to shake the status quo. Driven by data and tech, insurtech players across the world are pioneering novel offerings that inform policy design.

For example, users of Xiaomi smartphones in Indonesia could soon experience a streamlined claims process via PasarPolis. This will be facilitated by the device’s camera, which can internally assess the condition of the phone screen. While the patent for the technology is currently pending, think about the efficiencies that it might bring when you do need to make a claim for your broken screen.

That said, the industry has a long way to go, with the number of Indonesians covered by incumbent firms easily outstripping insurtech firms by a factor of 10.

We also dive into the brouhaha over StashAway’s reoptimization of its portfolios last week. The wealth management platform liquidated its holdings in a key China technology fund – a day before prices rebounded in an eye-watering rally. StashAway CEO Michele Ferrario gave us the lowdown on this difficult decision.

— Melissa

THE BIG STORY
How Indonesian insurtech is changing the game

Image credit: Timmy Loen

Indonesia’s top insurtech firms have followed similar paths to success, raising over US$140 million along the way. But their path ahead may diverge.

THE HOT TAKE
StashAway investors in uproar after unusual rebalancing move

Robo- or human advisor?