Indonesia’s PasarPolis is now able to underwrite its own products, making it one of Indonesia’s first full-stack insurtechs. This means PasarPolis will be able to offer new products and work with partners like Tokopedia, Gojek, Traveloka, Xiaomi and IKEA Indonesia to create custom insurance policies.
PasarPolis is able to underwrite insurance products because of its strategic partnership with Tap Insurance. Tap Insurance received a full license for insurance underwriting from OJK (Otoritas Jasa Keuangan, or the Financial Services Authority of Indonesia).
Cleosent Randing, the founder and CEO of PasarPolis, told TechCrunch that the first products from the strategic partnership will include fire and vehicle insurance.
Founded in 2015, PasarPolis has raised over $59 million in total to date and is backed by investors like Gojek, Tokopedia, Traveloka, LeapFrog and SBI. Its policies include travel, home content, logistics, electronic devices, life and vehicle insurance.
PasarPolis currently has 60,000 registered agents in Indonesia, and partners with 50 insurance providers. It says it has served more than 80 million customers and issued 1 billion policies between 2019 and 2021, partnering with 40 companies to distribute products.
Distribution partners include Shopee, Tokopedia, Gojek and Xiaomi. Customers can add micro-insurance policies to their purchases from their platform for about 5,000 to 20,000 Indonesian rupiah (or 32 cents to $1.29 USD).
PasarPolis is able to scale because it uses machine learning and data analytics to make the underwriting and claims process faster and more cost-effective. It says that 87% of noncredit insurance claims in 2022 were settled within 24 hours. PasarPolis’ tech includes algorithms that automate the claims approval process, based on data submitted by customers, like photos, chronology and date and time of events. The algorithm then filters information to PasarPolis’ faster “green” channel.
The company’s most recent launches include its Unified Claims Interface (POLI), which lets customers file multiple claims through different channels like email, WhatsApp, SMS and PasarPolis’ mobile app.
Randing says PasarPolis’ goal is to reduce the cost of insurance and increase penetration in Indonesia, where insurance penetration rate was only 4% as of 2022.
“We think that inclusive insurance is a vital add-on to basic state social,” he said. “Particularly the health protection in line with the increasing concern of many to protect their families’ health, especially during the pandemic.”