Insurtech startup PasarPolis announces follow on funding worth $5 million (more than 70 billion Rupiah) from the International Finance Corporation (IFC), a financial institution that operates under the World Bank that focuses on accelerating financial inclusion and literacy in developing countries. This funding was caught four months after announcing a Series B worth $54 million.
The two companies will gather to continue and strengthen the PasarPolis mission to democratize insurance coverage, one of which is through developing innovative microinsurance products that are affordable and in accordance with the needs of the community.
PasarPolis’ Founder & CEO, Cleosent Randing said the company needed world-class partners who could strengthen PasarPolis’s mission that is quite tough in order to encourage insurance penetration in Southeast Asia.
“We are ready to continue PasarPolis mission to answer the challenge of insurance inclusion in Southeast Asia, which remains such a homework, but through technology and microinsurance products, it can provide access to create a better impact,” he said in a virtual press conference, Thursday ( 4/2).
IFC’s Senior Country Officer, Jack Sidik said this investment is one of IFC’s series of efforts to assist Indonesia’s economic recovery through various initiatives in the private sector. In the past two months, IFC has mobilized IDR 5 trillion, mostly directed at the manufacturing sector in which most affected.
“Regarding PasarPolis, it is an equity [investment] of $5 million. We will help PasarPolis to expand insurance penetration in order to improve the digital economy. Thus, Indonesian workers and their families can have insurance and other safety nets,” Sidik said.
Separately, in an official statement, LeapFrog Investments Partner Fernanda Lima said that the cooperation between IFC and PasarPolis shows the great potential of insurance coverage at affordable prices, in order to increase positive social impacts. “With 30 insurance companies and 25 digital partners serving millions of new users during 2020, the opportunity for PasarPolis to expand its reach and services is extraordinary.”
Regarding the fresh funds, Randing explained that the company will continue to provide the best experience for consumers, from the product selection to the claim process. In terms of technology, it is also being improved for it can be easily used by underprivileged people and in remote areas, having limited use of digital technology.
He also emphasized that PasarPolis’ has other focus to increase insurance penetration and literacy in other ASEAN countries, such as Vietnam and Thailand, as one of the priorities in 2021. “From an industrial perspective, Vietnam and Indonesia have similar insurance market criteria, even though insurance awareness in Vietnam is relatively lower than Indonesia, Thailand is a fairly mature insurance market with a higher penetration rate.”
It is said that PasarPolis currently has more than 80 products specifically designed to lighten the burden and meet the unique needs of people. During the five years of operation, it is claimed that the company has provided protection to 11% of Indonesia’s population of around 30 million people.
As many as 90% of PasarPolis consumers are first time buyers, and 40% of policyholders are informal sector workers, such as online motorcycle taxi drivers, couriers, and online MSME players.
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Original article is in Indonesian, translated by Kristin Siagian
