SEA’s leading insurtech players

Compared to other areas of Southeast Asia’s fintech scene, the insurtech industry has attracted less attention as it is traditionally dominated by a handful of big players.

According to a report from technology consulting firm Capgemini, the insurtech market can be divided into three segments: full carriers, distributors, and enablers. This visual story has adopted the Capgemini report’s categorization.

Full carriers both develop and distribute insurance products, and most traditional insurance companies fall into this category. Distributors ensure that insurance products find their way into the hands of consumers (whether individuals or businesses), while enablers provide incumbent players with technology to enhance their operations.

Because of the low barriers to entry and less onerous licensing requirements, most Southeast Asian insurtech companies are either distributors or enablers. Designing a marketplace to sell products, for instance, does not require an insurance carrier license.

However, full-stack insurance carriers own the entire value chain and have more flexibility with the products  that they can offer customers. That’s why insurtech firms and their investors are leaning towards this model.

Up, up, and away

Interest in Southeast Asia’s insurtech space has been on the rise, with both the number of deals and deal value increasing since 2016.

Singapore-based insurtech firms attracted the most investor attention from 2017 to 2020, but that changed this year as investors began to equally favor startups in Indonesia and Thailand as well.

Low penetration, high promise

Insurance penetration in Southeast Asia is still low compared to other markets in Asia Pacific.

Globally, Hong Kong and Taiwan have the highest levels of insurance penetration.

Singapore is the only Southeast Asian market whose insurance penetration exceeds the global average. Meanwhile, Vietnam, Indonesia, and the Philippines are significantly underpentrated.

Rapid growth in the region’s digital economy, however, opens up US$10 billion in new opportunities to existing insurers and digital players.

Honey, I shrunk our insurance

Teaming up with tech companies

Not lying flat

Closing the gaps

Credits