Indonesia’s PasarPolis is now able to underwrite its own products, making it one of Indonesia’s first full-stack insurtechs. This means that PasarPolis can offer new products and work with partners such as Tokopedia, Gojek, Traveloka, Xiaomi and IKEA Indonesia to create custom insurance.
PasarPolis is able to underwrite insurance products through a strategic partnership with Tap Insurance. Tap Insurance has obtained a full insurance underwriting license from OJK (Otoritas Jasa Keuangan, or Indonesian Financial Services Authority).
PasarPolis founder and CEO Cleosent Randing told TechCrunch that the initial products of the strategic partnership will include fire and vehicle insurance.
Founded in 2015, PasarPolis has raised a total of over $59 million to date and is backed by investors including Gojek, Tokopedia, Traveloka, LeapFrog and SBI. Its policies include travel, home content, logistics, electronics, life and vehicle insurance.
Pasarpolis team Image credit: pasar police
PasarPolis currently has 60,000 registered agents in Indonesia and partners with 50 insurance companies. From 2019 to 2021, he says he has served more than 80 million customers, issued 1 billion policies and partnered with 40 companies to sell products.
Distribution partners include Shopee, Tokopedia, Gojek and Xiaomi. Customers can add microinsurance to their purchases from the platform for approximately 5,000 to 20,000 Indonesian Rupiah (or 32 cents to 1.29 USD).
PasarPolis can scale because it uses machine learning and data analytics to make the underwriting and claims process faster and more cost-effective. 87% of non-credit insurance claims in 2022 are said to have been settled within his 24 hours. PasarPolis’ technology includes algorithms that automate the claim approval process based on customer-submitted data such as photos, timelines and event dates. The algorithm then filters the information into PasarPolis’ faster “green” channel.
The company’s latest launch includes the Unified Claims Interface (POLI), which allows customers to submit multiple claims through various channels such as email, WhatsApp, SMS and PasarPolis’ mobile app.
According to Randing, PasarPolis’ goal is to reduce insurance costs and increase penetration in Indonesia, where insurance penetration was just 4% in 2022.
“We see comprehensive insurance as an essential add-on to the basic state of society,” he said. “Health protection is especially important given the growing concern about protecting the health of families, especially during a pandemic.”
