With less than two percent insurance penetration, Indonesia presents a market with significant headroom for growth, Indonesia-based insurtech firm PasarPolis said Monday.

PasarPolis said in a statement that the Southeast Asian insurance market is poised for significant growth, with key regions like Indonesia, Thailand, and Malaysia representing about 60 percent of the total premiums underwritten.

After pioneering the distribution space, PasarPolis said it is now the only full-stack digitally native insurance company with a robust presence across the insurance value chain.

According to PasarPolis, the insurtech market in Indonesia shows promising potential with a growing demand for affordable insurance products.

It said PasarPolis has identified several trends in the current market conditions, including bundling of products and value-added services, embedded insurance, partnerships with digital platforms, along with an omnichannel distribution approach to tap into the growing market.

Its Founder and Chief Executive Officer Cleosent Randing shared his optimistic outlook on the insurance market in Indonesia, highlighting the increasing demand for affordable insurance products in the region.

“There is increasing demand for affordable insurance products owing to the increasing awareness amongst the rising middle class,

“Full-stack insurtechs like PasarPolis are well-positioned to cater to this trend,” he said.

He also reckoned innovative insurance products are need to meet customer needs in the region.

“By leveraging technology and customer feedback, companies like PasarPolis can create contextualized insurance products that drive customer satisfaction and retention,” he said.

He also noted embedding insurance are needed in everyday activities in the region.

“Embedding insurance via partnerships with relevant ecosystem players will help in serving the day-to-day insurance needs of the customers,” he said.

This outlook is in line with McKinsey & Company’s identification of several trends in the insurance industry.

One such trend is bundling products and offering value-added services for high-net-worth customers as a solution for insurers.

Insurers in Southeast Asia (SEA) are now focusing on rethinking their propositions and enhancing the customer journey. Insurers are also partnering with digital platforms to embed products into the customer’s journey, perfectly suited to their requirements.

Finally, omnichannel is emerging as a theme, enabling customers to interact with insurers via multiple channels.

Going forward, PasarPolis said it continues to focus on its omnichannel strategy.

The company recently unveiled its latest innovation, Tap Partners – an innovative digital platform designed to provide offline merchants with a seamless means of selling embedded insurance products.

This development promises to revolutionize the insurance industry by empowering offline merchants to offer comprehensive insurance coverage effortlessly, utilizing an advanced digital platform.

Additionally, PasarPolis Mitra, launched in 2020, empowers offline agents to sell insurance in a seamless manner by using the Mitra platform.

With these forays, PasarPolis said it continues to lead the charge in the insurtech landscape, cementing its position as a full-stack insurer with unmatched distribution capabilities.

By offering an omnichannel platform, PasarPolis also aims to provide customers, both businesses and individuals, with easy access to insurance products, from policy selection to claims settlement.

“Through the use of big data, machine learning, and artificial intelligence, we plan to optimize our omnichannel strategy to deliver customized insurance products,” said Randing.

He said the firm believes it will enable the firm to address the customers’ needs, by facilitating and accelerating the underwriting and claim processes while innovating products that are of high relevance for customers and also customized to their needs.

“Our long-term vision is to become the top digital insurance company in SEA by making insurance easy, affordable, and delightful,” he added.

Pasar Polis combines online and offline channels to offer a seamless and integrated customer experience.

The firm’s omnichannel strategy allows it to maximize product distribution through various channels, including business to business to consumer (B2B2C), agency led, direct to consumer (D2C), and business to business (B2B), which sets it apart from more traditional insurance sales and marketing approaches.

Its unique approach to insurance sales and marketing has also set the standards for other insurtechs and traditional incumbents globally.

Through partnerships with over 40 digital ecosystem distribution partners, leveraging its Mitra platform and Tap Insure mobile app, PasarPolis has issued 500 million insurance policies in 2022 alone.

Leveraging data and customer feedback to create contextual products, PasarPolis aims to continually evolve its product portfolio with the changing needs of customers.

On the claims front, PasarPolis innovated a unified claims interface providing the simplest insurance experience to customers across channels, where customers can file a claim online via PasarPolis’s website and mobile app.

The overall turnaround time for completing claims for PasarPolis is much shorter due to its inhouse automation platform.

With consistently improving tech, PasarPolis aims to make insurance a 10 times better and more seamless experience for customers.

PasarPolis becomes Indonesia’s first full-stack insurtech ecosystem with new strategic partnership