Lifepal Announces 130 Billion Rupiah Series A Funding

Lifepal announced that it has secured a series A funding of $9 million or the equivalent of 130 billion Rupiah. The round was led by ProBatus Capital with the involvement of Cathay Innovation, Insignia Ventures Partners, ATM Capital and Hustle Fund.

Combined with previous gains, the total investment fund raised by the company stands at $12 million. This additional capital will be focused on improving their product and user experience.

Since its release in 2019 by Giacomo Ficari, Nicolo Robba, Benny Fajarai, and Reza Muhammad; Lifepal has incarnated become a platform marketplace insurance. Approach direct-to-consumer (D2C) allows them to distribute hundreds of insurance products to the public.

"During the pandemic we experienced a strong increase in demand along with increased awareness of the health risks combined with the availability of the platform online [..] Lifepal addresses the evolving needs of consumers by reducing the problems associated with traditional agents through full digitization value chain for a superior user experience," said Giacomo.

Meanwhile, ProBatus Capital Founder & Managing Partner Ramneek Gupta said, "We invested in Lifepal because of its potential to change the way Indonesian consumers buy insurance. They built a platform that uniquely serves consumers by including educational content that helps customers understand their needs."

Market size

Based on the data collected DSInnovate in a report entitled "Insurtech Ecosystem in Indonesia Report 2021" delivered, value gross written premiums (GWP) in the Indonesian insurance industry has reached $20,8 billion in 2020 with a CAGR of 3,9% from 2016. It also reveals the main problems that many complain about related to the claim process and accessibility to insurance products. From the thesis, startup insurtech emerged with a variety of unique business models.

"The insurance market in Indonesia is still not maximized and well-served, it is proven that less than 2% of Indonesians have insurance, thus making it ready for digital disruption," said Director of Cathay Innovation Rajive Keshup.

The digital approach is starting to prove fruitful. Internal data Lifepal revealed that it has experienced 12x yoy growth with a monthly growth of 20%. The strategy is to combine the strengths of content, community, and product distribution channels to produce more efficient business processes on the user side.

Lifepal currently accommodates more than 300 insurance policies in the fields of health, automotive, property, to travel, partnering with 50 provider companies.

Platform insurtech

Still from the report DSInnovate, currently there are about 11 startups that focus on presenting platforms insurtech. Beyond that, there are also market support products and enablers to support the digital insurance business system.

Each platform also has a unique approach. Take for example Fuse that digitizes agency concept which has been run by traditional insurance for a long time. This is considered relevant to conditions in Indonesia, as much as 97% of the population is still underinsured due to lack of trust in the current insurance system.

This year three startups insurtech others also announced the acquisition of new funding. First there PasarPolis which received additional funds of more than 70 billion Rupiah from IFC. Then Prixa.ai also received funding of 40 billion Rupiah led by MDI Ventures and TPTF. Finally, Fuse announced the acquisition of series B funding.