Companies in Indonesia such as IKEA, Gojek and Shopee are customizing insurance policies to suit the products they sell. It is made possible through developments in technology that have allowed them to collaborate with InsurTechs and underwriters to create policies for their customers.
A week ago, PasarPolis claimed it has become Indonesia's first official full-stack InsurTech ecosystem, which gives the company the ability to both distribute and underwrite its own digital insurance products. This achievement comes after the company sealed a strategic collaboration with local insurer Tap Insurance, which has received a full license from Indonesia’s financial authority (Otoritas Jasa Keuangan) to operate as an insurance underwriter.
“This can help accelerate our mission to democratize insurance for all by delivering insurance that is easy to access and affordable for everyone in Indonesia and Southeast Asia, including the uninsured and underserved society members,” said PasarPolis founder and CEO Cleosent Randing speaking to Asia Insurance Review.
The InsurTech ecosystem makes use of Tap Insurance’s expertise and capacity to underwrite insurance products, then distribute customized and owned products through its own channel.
“The firm partners with insurance providers (e.g. FWD, Allianz, Chubb, Tap Insurance) to create and customize microinsurance products that are affordable, and distribute them through their ecosystems partners such as Gojek, Traveloka, Lazada, Shopee and Bukalapak,” he said.
He said the platform facilitates claims processes too, allowing end-consumers to easily file claims. Some examples of core products development to date include logistics protection for sending documents/packages through the Gojek app, home content protection for furniture bought from IKEA and flight delay protection for flights bought on Traveloka.
“For a user who encounters a flight delay, we can access real-time information and verify and process claims through its connections to airline watchtowers and flight trackers,” he said.
The platform has also serviced companies from other markets such as Shopee Thailand with which it has an embedded insurance partnership.
“Our electronic protection is an embedded/a contextual insurance that customers can select upon check-out when they purchase electronic appliances on the Shopee Thailand app. This product provides 12 months of coverage for new home appliances from accidental damage and loss from theft with forcible entry,” said Mr. Randing.
The firm also collaborates with Xiaomi by providing extra protection for Xiaomi mobile phones from unexpected damage or loss due to theft to cover the risk of financial loss due to incurred extra costs as a result of mobile phones being damaged or lost.