The rise of PasarPolis, the insurtech star backed by Go-Jek, Tokopedia, and Traveloka

PasarPolis CEO Cleosent Randing. Photo credit: PasarPolis

Indonesia’s unicorns Go-Jek, Tokopedia, and Traveloka created a stir when news of their investment in local insurance startup PasarPolis became official last August.

Being backed by these companies is a rare feat, and their extensive distribution channels will help PasarPolis’ microinsurance products get a ton of customers.

“They are the largest ecosystem partners we can have [in Indonesia]. We are working closely with them,” said PasarPolis CEO Cleosent Randing in an interview with Tech in Asia.

The entrepreneur left Valuklik, a successful digital marketing startup he founded in 2012, to focus his efforts on what he views as a never-ending mission. He set up PasarPolis as a licensed online insurance marketplace in 2015. At the time, the company was only selling one-size-fits-all policies for health, cars, and travel from insurers.

PasarPolis has since expanded into a tech platform that also works with insurers and business partners – like the three unicorns – to offer customized and affordable insurance products.

In Go-Jek’s case, drivers can opt in for two options from PasarPolis: Go-Jek Health and Go-Proteksi.

Go-Jek Health covers medical inpatient and outpatient expenses, while Go-Proteksi covers for any accidents while drivers work – for a mere US$1 monthly.

Its ability to customize insurance is what made PasarPolis appealing to investors. The startup doesn’t charge for its tech, but it earns commission from policies sold.

Automating the process

PasarPolis is trying to overcome a major challenge: giving everyone access to insurance. Some may say that it is downright impossible to solve, but Randing is in it for the long haul.

“When I started PasarPolis, I wanted to create a product that will really change lives,” he shared. “The problem is that the price of insurance is relatively high, and it has to come down moving forward.”

Randing explains that customers in Indonesia are looking for protection that’s cheaper than a Starbucks coffee. “By making the whole claims and distribution process more automated through the use of technology, we are able to lower the costs.”

Take travel insurance, for example. PasarPolis offers instant claims for flight delays. The platform is connected to airline watchtowers and flight trackers for real-time information. If a flight is delayed, the company will send out a text message or email to customers and ask for their bank account details to disburse their claims.

Instead of physical documents, the platform accepts digital documents. It also customizes processes based on what the merchant and its customer base need. For instance, PasarPolis allows Go-Jek drivers to submit claims documents via WhatsApp.

A different approach

What lies ahead