Startup Insurtech Futuready Closes in Indonesia

Insurtech startup Futuready announced the closure of operations in Indonesia.

"We're sorry, PT Futuready Insurance Broker (FIB), is no longer operating," quoted from Futuready official site, accessed today (4/7).

The company continues, "from all of us at FIB, thank you so much for trusting us all these years. It has been a pleasure to provide you with insurance products online since 2016."

The reason for this decision was not stated.

Previous, Futuready's parent, Aegon Group, sold its Thailand business in November 2022 to Singapore-based private equity firm The Huntington Group. In Thailand, previously doing business as telemarketing since 2007, then rebrand so Futuready Thailand which offers consumer-focused insurance solutions through affinity and partner channels.

In Indonesia, Aegon has an 80% stake in Futuready. Aegon is a life insurance company and asset manager based in The Hague, Netherlands.

First time operating in Indonesia in 2016, Futuready utilizes a license as an insurance broker obtained from OJK. The official at the time, Sendy, said that brokers have a unique position because they can help customers with insurance. Brokers carry out their duties to help customers determine the best choice of insurance products objectively and transparently.

Not only consulting, companies can also provide intermediary services in insurance coverage and handling claim settlement by acting on behalf of and in the interests of customers, not the interests of insurance companies.

After Sendy, the highest position in Futuready Indonesia was filled by Keet Peng Onn since August 2019. Onn previously held several important positions at Aegon Group.

Turn your brain market insurance

In Indonesia, public penetration of insurance products is relatively low. OJK data shows that the penetration rate of insurance in Indonesia in 2021 will reach 3,18%, consisting of penetration of social insurance (1,45%), life insurance (1,19%), general insurance (0,47%), and the rest is mandatory insurance.

Meanwhile, the insurance industry's asset contribution only reached 5,8% of GDP with penetration below 4%. In fact, to become a developed country, insurance contributions must reach 20% of GDP.

Founder & CEO PasarPolis Cleosent Randing details there some problems fundamentals in the insurance industry. For example, innovations that are not fast enough, products that are not accessible to the general public, and many business processes are still manual. From here, there are many digitalization opportunities that can be carried out by insurtech players.

Under these conditions, approach PasarPolis is build digital engagement, linking insurance as part of the digital lifestyle of the Indonesian people, by presenting services embedded insurance.

"Like when people buy stuff at marketplace, insurance feels like air [something that accompanies, in this case for the protection of goods]. So the goal is to bring insurance into people's lives, not people who come looking for insurance. This partnership is the best strategy to access customers," explained Cleo.

Qoala Co-Founder & COO Tommy Martin add, every time there is an innovation that changes people's behavior will pose a new risk. This opportunity can be worked on by insurance companies, so that their products are also required to continue to innovate. The insurance world itself is known as a rigid industry with work processes that are not as dynamic as insurtech services.

"Insurance has to be lifestyle which is not sought for one year, but can be purchased several times a year. That's why it has to be linked to lifestyle," he said.

The two companies above are also starting to step on the gas by utilizing the distribution channel that is most sought after by consumers, namely the agency. Fuse only focuses on this business model.

Agency business

Previous, AAJI Executive Director Togar Pasaribu said, for life insurance companies, agents are like fresh blood. If you don't recruit, it will harm the company that adopts the strategy agency. However, this note only applies to life insurance companies that use it agency as a distribution channel.

Togar also emphasized that the agency model cannot be separated from the culture of Indonesian society until all people understand the importance of life insurance protection for him and his family. This is because insurance products are still 'sold', not 'bought'.

This agency business is expensive and has turnover tall one. Even so, companies that rely on this channel still have to recruit to keep growing under any conditions. Togar said that there is a general formula for recruiting agents, namely 10:3:1. This means that out of every 10 people invited, only three people are interested and take part in the training. But in the end only one person is willing to become a life insurance agent.

"In an analogy, all you have to do is put the instant noodles on , then people come to buy it. Life insurance products can't do that. He must be offered. So, this is why the role of life insurance marketers is so important," he said.