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PasarPolis issued over 650 million policies to first-time customers in 2019 alone
Indonesian insurtech startup PasarPolis has raised US$54 million in an oversubscribed Series B funding round, marking it the biggest Series B haul by an insurtech startup in Southeast Asia, PasarPolis announced in a statement yesterday.
Investors who participated in the latest round of financing include LeapFrog Investments, Japanese asset management company SBI Investment, AlphaJWC, Indonesia-focused Intudo Ventures, Chinese smartphone maker Xiaomi, and Go-Ventures, the investment arm of GoJek, the statement noted.
According to a report by The Entrepreneur, PasarPolis Founder and CEO Cleosent Randing, noted in the statement, “We believe that by working together with these globally-renowned investors, we will be able to accelerate the penetration of insurance in the region by further expanding access to fast and inclusive affordable-insurance plans.”
PasarPolis aims to use the fresh funds to advance its artificial intelligence (AI) technology, leverage big data to build tailor-made digital insurance products, and expand penetration in existing markets through its fast-growing agency business, according to a report by private equity wire.
The Jakarta-headquartered startup was founded in 2015 and is on a mission to democratize insurance through technology in Southeast Asia, where non-life insurance penetration was a mere 2.1% in 2018.
The statement also claimed that the startup’s partnership with premier insurance companies has enabled PasarPolis to offer tailor-made products to diverse customer groups.
According to an Ernst & Young report, 73% of Asia-Pacific consumers believe they should be able to accomplish any financial task with their smartphones. Subsequently, consumers in this region expect seamless and personalized digital experiences through their phones, creating the need for innovation in the region.
PasarPolis and Xiaomi are, therefore, trying to create more holistic and easily accessible insurance through mobile-first insurance technology, according to a media report.
PasarPolis offers personalized insurance policies through its highly scalable AI-powered platform which facilitates easy onboarding, product creation flexibility, and has a claims portal for customers along with a proactive claim system that notifies customers when their policy is claimable, according to their website.
Since its Series A funding round in August 2018 from unicorns GoJek, Traveloka, and Tokopedia, the number of partners PasarPolis works with has increased 4x, while the number of policies issued has grown more than 80%, the statement noted.
PasarPolis claims to have issued more than 650 million policies to first-time insurance purchasing consumers, ride-hailing drivers, delivery couriers, and online SME merchants in 2019.
“With 30 insurance companies, and 25 digital partners, together serving over four million new customers in June 2020 alone, the opportunity for PasarPolis to expand its offering and geographic reach is extraordinary,” Fernanda Lima, Partner at LeapFrog Investments, noted in the statement.
“There is huge potential for positive social impact. This is thanks to a seamless experience, particularly enjoyable amongst first-time buyers of insurance who use digital ecosystem, digital payments and operate mobile-only business,” she added.
As part of their investment, LeapFrog Investments will help PasarPolis to expand in other markets and improve its consumer insights and product innovation capabilities, Lima said.
Randing noted in the statement that the company acts as a bridge to insurance protection for those who are uninsured.
“In the future, not only will we create the right insurance products for today’s more digital-savvy consumers, but we will build an industry-leading insurance brand that will endure for generations; an organization built on technology, enabling faster, more efficient operations. A brand that is loved by all,” he also said.
Header image by Andrea Piacquadio from Pexels