PasarPolis, the Indonesian-based startup focused on making insurance policies more accessible in Southeast Asia, announced today it has closed a Series B round totaling $54 million. Investors include LeapFrog Investments and SBI Investment, both firms that focus on financial services; AlphaJWC; Intudo Ventures; and Xiaomi.
Gojek’s venture capital arm, Go-Ventures, which participated in PasarPolis’ Series A two years ago, also returned for the new round.
Founded in 2015 by chief executive officer Cleosent Randing and chief operating officer Michael Saputra, PasarPolis operates in Indonesia, Thailand, and Vietnam. The company says the number of insurance policies it issues monthly has grown 80 times since August 2018, when it closed its Series A, and that it now partners with more than 30 insurance providers.
Randing said the the insurance penetration rate in the ASEAN region is currently just 3.6%, and the startup’s goal is to reach people who have never purchased insurance before through products including inexpensive “micro-policies” that cover broken device screens.
In 2019, the company says PasarPolis issued more than 650 million policies to people buying insurance for the first time, including ride-hailing drivers, delivery couriers, and online merchants. Sales continued to grow during the COVID-19 pandemic because it increased demand for insurance, while also prompting people to make more purchases online (most of PasarPolis’ policies are sold through its mobile apps). In June alone, the company claims it served more than four million new customers, and has now provided policies to more than 35 million customers in total.
Nishant Kumar, PasarPolis’ chief technology officer, told TechCrunch that the new funding will be used on its AI-based claim automation platform, which allows the company to customize insurance products for different industries.
It also plans to invest in PasarPolis Mitra, an onboarding platform for agents. Soft-launched in May 2020, PasarPolis allows people to apply to become Mitra, or insurance agents, for the company. PasarPolis currently has a network of about 10,000 agents in Indonesia, who help customers chose policies and process claims.
“We plan to invest in infrastructure to help our Mitra be able to engage with our customers more,” said Kumar. “We believe it’s important for us to implement both online and offline strategies as an insurtech player.”
Kumar added that even though technology plays a “pivotal role” in making insurance products accessible to more people, PasarPolis does not “see digital as just a medium to sell insurance. We think that technology can be used to segment risk in real-time and provide more affordable insurance to the masses.”
Two of PasarPolis’ main competitors in Southeast Asia include Qoala, another Indonesia-based insurtech startup that recently raised funding, and Grab Financial Group, which launched a new portfolio of consumer financial services last month, including expanded insurance offerings.
Randing told TechCrunch that PasarPolis’ competitive advantage is its “ability to offer highly customized and modular insurance products that are integrated with partners’ systems,” including health and accident coverage for Gojek’s drivers and passengers; insurance for small- to medium-sized businesses that cover damaged products and missing items; and policies that protect e-commerce customers.
An example of the kind of customized insurance products PasarPolis can create is a policy for Gojek drivers that covers stolen vehicles and costs less than USD $4 a year.
The company is also a licensed insurance broker, which is why it was able to operate PasarPolis Mitra. “The platform is so unique to Indonesians, that it enables anyone, from professional insurance Mitra, Gojek drivers, stay-at-home moms, and furloughed employees, to earn additional income, especially during the new normal,” said Randing.