InsurTech Platforms

Woman with an umbrella
InsurTech Platforms
Aggregators and providers of affordable insurance products
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Business Model Description

Invest in B2A / B2C / B2B2C digital insurance companies engaged in the provision of: - Microinsurance (life and health insurance) i.e. insurance with low premiums and low caps/coverage with a focus on low-to-middle income groups - Mass market insurance products Examples of some companies active in this space are:

PT. PasarPolis Indonesia, founded in 2015, operates an online portal to compare and purchase insurance products through a distribution partnership with insurers and brokers. Its investors include: International Finance Corporation [USD 5 mn in 2021(18)] and LeapFrog Investments, SBI Investments, Alpha JWC, Intudo Ventures, Go-Ventures, and Xiaomi [USD 54 mn in Series B in 2020]. (19)

Fuse, founded in 2017, connects insurance companies with distribution channels and partners to make insurance accessible and affordable. It uses mobile applications to offer an agent-focused service, B2A (Business to Agent/Broker). As of 2021, it has raised USD 70 mn, including USD 25 mn in Series B from an undisclosed global fintech fund, East Ventures, GGV Capital, eWTP and Emtek. (20)

Qoala, founded in 2018, is an insurance marketplace that easy and affordable insurance services. It has raised a total USD 16.5 mn (21), including USD 13.5 mn in Series A from Centauri Fund, Sequoia India, Flourish Ventures, Kookmin Bank Investment, Mirae Asset Venture Investment, and Mirae Asset Sekuritas. (22)

PT Asuransi BRI Life (formerly known as PT Asuransi Jiwa Bringin Jiwa Sejahtera), founded in 1985, operates as a subsidiary of PT Bank Rakyat Indonesia (Persero) Tbk and provides life insurance products and services. It launched its IPO in 2019. In 2021, FWD Group acquired a significant minority stake in the company(23).

Expected Impact

Provision of insurance products to improve insurance penetration, particularly for low income groups, leading to stability in economic growth.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
< 5% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10)
Sector Sources
  • (1) BENEDIKTUS KRISNA YOGATAMA. 2021. Baru 6,5 Persen Penduduk Indonesia Terlindungi Asuransi Jiwa. (2) SOFIA-Oxford Policy Management Ltd. 2017. Understanding people's use of financial services in Indonesia. (3) OJK. 2021. THE INDONESIAN FINANCIAL SERVICES SECTOR MASTER PLAN 2021-2025. (4) Bamboo Capital Partner. 2020. Amartha – Bridging the financing gap for women entrepreneurs in Indonesia. (5) WOMEN'S WORLD BANKING. 2019. Indonesia. (6) OJK. 2020. BAGAIMANA UMKM & PERBANKAN DAPAT SUKSES DI ERA DISRUPSI EKONOMI & DIGITAL. (7) OJK. 2020. Supporting Financial Inclusion for MSMEs through FinTech. for (8) J-PAL. 2020. Towards Inclusive Digital Finance in Indonesia (Inclusive Financial Innovation Initiative Whitepaper). (9) Ayman Falak Medina. 2021. Opportunities in Indonesia’s Financial Technology Sector. (10) Ajisatria Suleiman. 2021. Policy Paper No. 34 - Improving Consumer Protection for Low-Income Customers in P2P Lending. (11) PRAKARSA Policy Brief. 2020. The Risk of Over-indebtedness Amid COVID-19 Pandemic. (12) OJK. 2014. Peraturan Otoritas Jasa Keuangan Nomor 19/POJK.03/2014 Tahun 2014. (13) Bappenas. 2021. Indonesia's Voluntary National Review 2021. (14) Ministry of Women Empowerment and Child Protection. 2019. Profil Perempuan Indonesia 2019. (15) Arina Yulistara. 2018. 4 Tips Memilih Asuransi untuk Perempuan. (16) Miliman. 2020. Indonesia: Microinsurance remains underdeveloped with availability of demand information identified as key challenge. (17) Nurina. 2020. Challenges for insurtech in Indonesia.
IOA Sources
  • (18) Crunchbase. 2022. PasarPolis. (19) IDNFinancials. 2020. PasarPolis receives US$ 54 million in Series B funding. (20) Kate Park. 2021. Indonesian insurtech startup Fuse gets $25M Series B extension to expand further in Southeast Asia. (21) Crunchbase. 2022. Qoala. (22) IDNFinancials. 2020. Qoala obtains Series A funding worth US$ 13.5 million. (23) FWD. 2021. FWD Group completes investment in BRI Life Indonesia. (24) GlobalData. 2021. General insurance industry in Indonesia to reach US$5.17bn in 2025, forecasts GlobalData. (25) Clara Bullock. 2021. Life insurance industry in Indonesia to recover from 2021. (26) Ken Research. 2018. Indonesia Clinical Laboratory Market Outlook to 2022 - By Type (Public Clinical Lab, Private Hospital Labs and Private Independent Labs), By Type of Test (Routine, Non Laboratory and Esoteric). (27) Cekindo. 2021. How Technology Can Revolutionize Indonesia’s Insurance Sector. (28) OJK. 2018. Statistik Perasuransian 2018. (29) OXFORD BUSINESS GROUP. 2022. How is Indonesia increasing insurance coverage?’s-large#:~:text=Under%20the%20new%20regulations%2C%20foreign,12%20life%20insurance%20joint%20ventures. (30) Nurina. 2020. Challenges for insurtech in Indonesia. (31) PwC. 2021. COVID-19 and the Indonesian Insurance Industry: Issues and actions to consider. (32) Thomson Reuters. 2021. Insurance and reinsurance in Indonesia: overview. (33) Cekindo. 2021. Indonesia Healthcare Market Goes Digital. (34) BPS. 20121. Executive Summary of Consumption and Expenditure of Indonesia March 2021. (35) Anindya, K., et al. 2020. Impact of Indonesia's national health insurance scheme on inequality in access to maternal health services: A propensity score matched analysis. (36) National Population and Family Planning Board. 2018. Indonesia Demographic and Health Survey 2017. (37) Republic of Indonesia. 2019. Roadmap of SDGs Indonesia Towards 2030. (38) Republic of Indonesia. 2021. Annexes Indonesia’s Voluntary National Review . (39) Aziz Rahardyan. 2021. KoinWorks Ciptakan Ekosistem Layanan Finansial UKM Buat Penuhi Imbauan OJK. (40) Saurav Dash, Rudra P. Pradhan, Rana P. Maradana, Kunal Gaurav, Danish B. Zaki, Manju Jayakumar. 2018. Insurance market penetration and economic growth in Eurozone countries: Time series evidence on causality. (41) Ministry of Health. 2021. Rencana Strategis Kementerian Kesehatan Tahun 2020-2024. (42) OJK. 2018. PERATURAN OTORITAS JASA KEUANGAN REPUBLIK INDONESIA NOMOR 27 /POJK.05/2018. (43) Republic of Indonesia. 2020. Peraturan Pemerintah (PP) Nomor 3 Tahun 2020.,Perusahaan%20Perasuransian%20%5BJDIH%20BPK%20RI%5D (44) OJK. 2020. Surat Otoritas Jasa Keuangan Nomor S-18/d.05/2020 Tahun 2020. (45) Republic of Indonesia. 2020. Peraturan Pemerintah Pengganti Undang-Undang (Perpu) Nomor 1 Tahun 2020.