1. Startups

Collaboration with Startups Becomes Strategy for Insurance Companies to Deepen Distribution Channels

Throughout 2020, eight partnerships were inaugurated between startups and insurance companies

Last week, Home Credit announced its collaboration with PT Asuransi Harta Aman Pratama to launch a line insurtech named "MyLifeCOVER" on the platform fintech the. Users can now register, pay, and process claims online through the Home Credit application.

Earlier this month, Grab also recently announced the entry of PT PFI Mega Life Insurance into its partner ranks. Collaboration was realized with the launch of the "Protect Buddy" feature in super app This makes it easier for users to get critical illness protection insurance products.

In total in 2020, we noted that there were eight inauguration of similar collaborations, between digital platforms and insurance companies – outside of platforms developed by startups that are specific to business. insurtech—includes:

Digital PlatformsInsurance company
DANAAXA Financial Indonesia, Mandiri AXA General Insurance
TravelokaFWD Life Indonesia
GrabSimas Life Insurance
Good DoctorAXA Financial Indonesia
JD.idLife Insurance Sequis Life
People's CapitalAdira Insurance
OyoSimas Insurtech Insurance
HalodocAvrist Assurance

Citing reports Corporate Digital Transformation Report 2020, digital innovation for insurance products and services is divided into several aspects. The cooperation model carried out above is almost all focused on “digital customer engagement” alias as a channel to connect insurance products and services to its users. Of course the question is: how effective is it?

recently Grab Financial (units of Grab which focuses on handling financial and insurance platforms) announced that during its two years of operations in Southeast Asia, unit insurtech they managed to sell 100 million insurance policies. In a release, Tokopedia also said that as of the end of 2020, micro insurance products such as "Gadget Protection" that were sold to users had experienced an increase in transactions of up to 70 times. Obviously these two examples are remarkable achievements.

Its potential can still be explored; According to Nielsen's research in 2020, public awareness of having life insurance products in big cities in Indonesia during the pandemic increased to 24%. Previously, the increase was always stuck in single digits. Although currently in general in Indonesia the ownership of insurance in general still relatively low, with insurance penetration (total premium/GDP) of 3%.

Service presenter perspective

In the inauguration session of his collaboration with insurance company partners, Head of Payments & Value-Added Services Home Credit Indonesia Randy Pragustio Priantoro said, "Innovation through digital technology is needed so that insurance can reach the widest possible Indonesian people and be able to provide a good understanding of the importance of protection. soul."

He himself is of the opinion that the application consumer as promoted is indeed the right approach to reach these circles. Especially one of the missions fintech also protect those who are not fully served by banking services while helping to improve financial literacy.

The Head of Insurance also conveyed the same thing Grab Financial Group Tom Duncan when announcing his partnership with Mega Life Insurance, "This product [Sobat Proteksi] is an extension of our micro and fractional pricing approach so that more underserved Indonesians can benefit from insurance products that are accessible and delivered online." transparent."

On the insurance company side, Niharika Yadav as President Director of AXA Financial Indonesia also said when inaugurating his collaboration with DANA, that product accessibility is a priority in the collaboration built with digital application developers. "We strive to always innovate and present customer-focused life and health insurance solutions and provide easy access for everyone to have and experience the benefits of insurance protection."

Education through product relevance

The best way to provide education is to provide practical experience. This model seems relevant when linking the proliferation of micro-insurance products that are currently integrated with services from digital startups. Microinsurance products what is meant here is protection for something that has a relatively smaller value, for example gadget insurance, short-distance travel insurance, etc. The price is quite affordable.

Take insurance for example for protection smartphone for cracked screens, OVO charges a monthly fee ranging from IDR 15.000 to IDR 65.000 for (1) 100% guaranteed replacement of a new screen; (2) repair warranty if the screen is damaged again for 90 days; (3) flexible protection period from 3 to 12 months; (4) claim service pickup and delivered free from the user's residence to service center and vice versa; (5) spare parts new and original.

Gojek also has similar products, working with its portfolio PasarPolis. According to Gopay's Chief Risk and Compliance Officer Budi Gandasoebrata, GoSure's focus (unit insurtech) is to facilitate public access to affordable insurance products. In addition, the product or service must also be ensured with daily needs. “[for example] In presenting this product [insurance gadgets], we understand very well the importance of protecting gadgets which have now almost become a primary need in an increasingly digitized society since the Covid-19 pandemic.”

With a more mature understanding of insurance products/services and how they work – especially by directly experiencing the benefits provided – it is not impossible that the penetration of insurance products (including life insurance) will increase in the future.

Quoting from the report DSResearch, the factors of Indonesian people's reluctance to insurance is caused by a number of reasons. Namely, related to the procedure to get it (33,62%); the price is considered too expensive (24,15%); do not understand about the product and its benefits (20,76%). There are several respondents (13,56%) who relate to the prohibition of religion.

Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again

Sign up for our
newsletter

Subscribe Newsletter
Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again