With PasarPolis backed by Gojek, Tokopedia, and Traveloka, there was an expectation the startup would do something big. And with the firm officially becoming Indonesia’s first full-stack insurtech ecosystem, that appears to have come to fruition, although some questions remain as to what this all means.
So, what exactly is a full-stack insurtech ecosystem? According to PasarPolis, it is having the ability to both distribute and underwrite its own digital insurance products. That milestone was reached when the firm sealed a strategic collaboration with Tap Insurance that received a complete license from Indonesia’s Financial Authority, Otoritas Jasa Keuangan/OJK, to operate as an insurance underwriter.
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In other words, PasarPolis can now evaluate insurance applications in Indonesia and decide whether to approve them. This was seen as a vital next step for the insurtech startup as it looks to make coverage more readily available and create a streamlined process in what is a complex field.
“The insurance gap and unequal insurance distribution continue to be major challenges in Indonesia and PasarPolis is strongly committed to solving this. Our full-stack insurtech ecosystem allows us unparalleled flexibility in innovating insurance, making the customer experience 10x better by promising a frictionless, simpler, and more affordable process for all,” Cleosent Randing, CEO and Founder of PasarPolis, detailed.
He continued, “We believe that with technology, we’re in a prime position to effectively bridge the insurance gap by providing a wider range of suitable insurance products and services and improving access to affordable insurance protection across all market segments, including the uninsured and the underserved of society.”
Perhaps the most interesting aspect of PasarPolis becoming Indonesia’s first full-stack insurtech ecosystem is a plan to use advance technologies to streamline underwriting and claims processes. The company believes it will be able to create simpler, more cost-effective insurance products while providing a seamless experience for consumers.
Additionally, the organization can now offer partners, including Tokopedia, Gojek, Traveloka, Xiaomi and IKEA Indonesia, the ability to design custom insurance products using the full-stack ecosystem. Ultimately, the goal is to assist a country that has an insurance penetration rate of approximately 3.18 percent, one of the lowest totals globally.
“It’s not just a matter of cost, but whether underwriter firms are willing to launch affordable products for Indonesians. PasarPolis is determined to answer the main challenges posed and serve the vast underinsured so that all levels of society in Indonesia can be insured. We want to make the entire process of buying and claiming insurance delightful, with everything just a tap away,” Randing stated.
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