Indonesian unicorns Go-Jek, Traveloka and Tokopedia have officially announced an investment in local insurance technology (insurtech) startup Pasarpolis, confirming an earlier report by DEALSTREETASIA.
In an official announcement on Friday, PasarPolis said that it has secured an investment from the three unicorns, who will also act as strategic partners to the startup. The size of the investment, however, was not disclosed.
This portal had in June reported that Go-Jek, Traveloka and Tokopedia had invested $5-8 million in PasarPolis.
Pasarpolis sells a variety of insurance options covering health, vehicle, accident, property, travel and life. These policies are underwritten by 30 major insurers, including AXA, AXA Mandiri, Lippo Insurance and Zurich. In addition, it has partnered with government-backed workers’ insurer BPJS Ketenagakerjaan as well as with Go-Jek to insure its drivers.
“PasarPolis uses advanced technology to lower barriers to entry for people to get insured, thereby helping reach a wider audience and ultimately provide insurance for everyone. We are happy to partner with Tokopedia, Traveloka and an affiliated company of GO-JEK who all share the same vision with us,” said PasarPolis founder and CEO Cleosent Randing.
Commenting on the partnership with PasarPolis, Go-Jek Founder and CEO Nadiem Makarim said, “This strategic partnership with PasarPolis will support the Go-Jek’s ecosystem where our driver partners have the access to insurance with an affordable premium. Today, there are more than 250,000 of our driver partners who enjoy insurance programs offered by PasarPolis.”
Established in 2015, PasarPolis started its journey as an aggregator of insurance products. It has since transformed into a provider of insurance solutions with affordable premiums by utilizing big data and algorithms from a pool of customer information and through its partnership with insurance companies.
PasarPolis is seen to follow a similar business model as ZhongAn, China’s first online-only insurance technology company. Backed by Ant Financial, Tencent and Ping An, it sells all its insurance products online, along with handling claims.
Financial services have emerged as the new battlefield for startups and financial institutions alike in Indonesia. The market remains largely untapped — less than half of adults in the country own a bank account, while less than a tenth have credit cards.
Indonesia currently has four unicorns in ride-hailing startup Go-Jek, hospitality startup Traveloka and e-commerce companies Tokopedia and Bukalapak. Of the four, Go-Jek and Traveloka are known to have developed their own payment service, Go-Pay and TravelokaPay, while Tokopedia and Bukalapak collaborate with a number of fintech companies to offer financial services solutions to their customers.