Insurtech from Thailand "Sunday" Full Acquisition of KSK Insurance Indonesia

Company insurtech from Thailand Sunday Ins Holding announced that it had completed the acquisition of PT KSK Insurance Indonesia in January 2024 after obtaining permission from the Financial Services Authority. Sunday acquired 99% share ownership of PT KSK Insurance Indonesia for an undisclosed amount.

In its official statement, this acquisition is said to have accelerated the growth of a business line that focuses on product innovation and alternative distribution channels on a national scale. Through its collaboration with Sunday, KSK Insurance is recorded to generate premiums worth $10 million in 2023 for health and motor vehicle insurance.

Apart from that, this acquisition is said to have the potential to make Sunday one of the groups insurtech The largest holds licenses in two countries, namely Thailand and Indonesia as the largest general insurance market in Southeast Asia with revenues exceeding $100 million.

For your information, PT KSK Insurance Indonesia is a general insurance company with insured gross premiums reaching $40 million in 2023, including motor vehicle insurance, property insurance and cargo insurance.

“This partnership signals our deep commitment to Indonesia and our mission to become a group insurtech leading in this region. "Our main focus is to expand product solutions to corporate clients, partners, agents and brokers in our ecosystem to serve the growing middle class with better claims, lifestyle and risk prevention services," said Co-Founder & CEO Sunday Cindy Kua.

Sunday has a mission to become the leader of the first digital insurance group to apply artificial intelligence (AI) or machine learning as well as micro-service architecture in all insurance segments, starting from health insurance, motor vehicle insurance, commercial products, and other retail products in this region.

The claim is that Sunday has doubled organic growth regionally to reach more than $70 million in premiums in 2023. As for in Indonesia, Sunday first operated as insurtech registered and licensed broker in 2022.

Digitalization of insurance products It is projected that it will continue to grow in Indonesia. According to the General Chair of the Indonesian General Insurance Association (AAUI) Budi Herawan, the market insurtech It is estimated to grow fourfold during 2021-2026 with gross premiums reaching billions of US dollars. As of October 2023, insurance penetration in Indonesia has only reached 2,75%.

Regardless of its potential, industry insurtech is still trying to encourage penetration of its services in Indonesia. According to the Startup Report 2023, several players have pivoted and closed their businesses because they were hampered by the difficulty of innovating and becoming a sustainable business. Futuready had ceased operations last year, meanwhile Aigis is turning into a financial platform and project management with brand new Finnix.