PasarPolis Announces Over 70 Billion Rupiah Funding from IFC

Startups insurtech PasarPolis announced the acquisition of further funding of $5 million (over 70 billion Rupiah) from the International Finance Corporation (IFC), a financial institution under the auspices of the World Bank that focuses on accelerating financial inclusion and literacy in developing countries. This funding was reached four months after announcing Series B for $54 million.

The two companies will jointly continue and strengthen the mission PasarPolis to democratize insurance more broadly, one of which is through the development of innovative micro-insurance products that are affordable and in accordance with the needs of the community.

Founder & CEO PasarPolis Cleosent Randing said the company needed world-class partners who could strengthen its mission PasarPolis which can be said to be difficult in order to encourage insurance penetration in Southeast Asia.

“We are ready to continue the mission PasarPolis "To answer the challenge of insurance inclusion in Southeast Asia is still a big PR, but through technology and microinsurance products we can provide access to create a better impact," he said at a press conference held virtually, Thursday (4/2).

IFC Senior Country Officer Jack Sidik added that this investment is one of IFC's series in helping Indonesia's economic recovery through various initiatives in the private sector. In the past two months IFC has mobilized IDR 5 trillion in funds, the most directed towards the manufacturing sector that was most affected.

"For PasarPolis in the form of an equity [investment] of $5 million. We will help PasarPolis expand insurance penetration in order to improve the digital economy. Thus, Indonesian workers and their families can have insurance and other safety nets,” said Jack.

Separately, in an official statement, LeapFrog Investments Partner Fernanda Lima said the collaboration between IFC and PasarPolis demonstrates the enormous potential of affordable insurance coverage, to increase positive social impact. “With 30 insurers and 25 digital partners jointly serving millions of new users over the past 2020, the opportunity PasarPolis to expand its reach and the service has been great.”

Regarding the use of fresh funds, Cleosent only detailed that the company will continue to provide the best experience for consumers, starting from the product selection process to the claim process. In terms of technology, it also continues to be improved so that it can be more easily used by underprivileged communities and in remote areas, which so far have only used digital technology on a limited basis.

He also emphasized, focus PasarPolis The other is to increase insurance penetration and literacy in other ASEAN countries, such as Vietnam and Thailand which is still one of the priorities in 2021. “In terms of industry, Vietnam and Indonesia have similar insurance market criteria, although insurance awareness in Vietnam is relatively lower than Indonesia, Thailand is a fairly mature insurance market with a higher penetration rate.”

Mentioned at this time PasarPolis has more than 80 products that are specifically designed to lighten the load and meet the unique needs of each other. During the five years of operation, the company claims to have provided protection to 11% of the Indonesian population or about 30 million people.

As much as 90% of consumers PasarPolis is first time buyers, and 40% of policyholders are informal sector workers, such as motorcycle taxi drivers online, couriers, and SMEs online.