Indonesian insurtech PasarPolis has on Tuesday unveiled strategic plans to capture the insurtech market opportunities in the country.
PasarPolis said in a statement that the insurtech industry anticipates a dynamic and transformative year in 2024.
With advancements in technology, evolving consumer preferences, and regulatory developments, it said the landscape is set for innovation and growth.
According to PasarPolis, key areas of focus include harnessing emerging technologies, and meeting evolving customer expectations.
With the advancement of generative artificial intelligence (AI) in the industry, it said the dynamics of customer-agent interactions will be shifting.
It said AI will offer significant help in streamlining claims filing and handling; as well as expediting responses and resolution.
As AI continues to advance, it said they might be able to more accurately predict trends and proactively offer tailored product and policy recommendations that can support both insurers and their customers.
PasarPolis also noted that one of the key characteristics of modern customers is their expectations to have highly customized and relevant offers to their needs.
Thus, it sees insurtech companies must be able to offer insurance products and services that are hyper-personalized to fit the customers’ exact needs.
It said they also want these offers to be accessible quickly and easily through digital channels, such as apps or mobile websites.
“We have anticipated the trend of hyper-personalization in the insurtech industry quite some time ago. That is why we keep expanding our micro-insurance products,
“Our aim is to further democratize access to insurance and help people understand the true value of insurance protection in their daily lives,” said Peter Van Zyl, its President Director.
As PasarPolis charts its course for 2024, the company said it is committed to a robust strategy focused on innovation and market expansion.
Leveraging cutting-edge technologies, PasarPolis said it aims to introduce a diverse array of insurance products catering to evolving customer needs combined with a more innovative customer experience.
The frim’s strategic plan includes expanding into new markets, emphasizing partnerships for broader outreach.
Throughout 2023, PasarPolis accomplished remarkable growth, issuing approximately 2 billion policies since 2019 to date.
It is noted that 85 percent of lodged claims were settled in less than two hours for gadget insurance, while 97 percent were settled in under a day for non credit insurance.
Furthermore, the company continued to build a stronger network with over 50 ecosystem partners and 11,000 registered agents.
As of last year, PasarPolis boasts a customer base of around 20 million with over 175 micro-insurance products developed in-house.
PasarPolis witnessed significant growth between 2021 and 2022, achieving 100 percent growth.
However, during that time, the economics, including contribution margin (CM margin) and burn (EBITDA), were not robust.
In anticipation of obtaining the underwriting license in the fourth quarter of 2022 and transitioning towards becoming a digitally native full-stack Insurtech, PasarPolis took steps to improve economics across business lines.
As of the end 2023, PasarPolis recorded positive contribution margins, with strong profit pools in the underwriting business poised to propel margins in the future.
In the distribution business, strategic alliances have been secured with prominent players with different industry backgrounds such as logistics/shipment, financing-technology, and motor vehicle warranty service providers, and parking management to distribute PasarPolis’s products to their customer base and explore reciprocal business opportunities.
These partnerships, leveraging full-stack capabilities, aim to position PasarPolis as the partner of choice for several ecosystems.
Those initiatives not only facilitate massive scale-up but also bring multiple benefits to both the company and business partners.
For PasarPolis, it means a proficient workforce primed for quick integration, upselling general insurance products to an existing customer base, and tapping into the higher purchasing power of captive customers for increased sales potential.
Meanwhile, the marketing initiatives will benefit from elevating lifetime value (LTV) from their existing customer base via general insurance products, access to a one-stop platform offering a strong product catalog, and higher earning potential due to an extensive product portfolio.
Looking ahead, PasarPolis said it is poised to bring more value to customers through regional expansion and new product innovation, solidifying its position as a leader
in the insurtech industry with sustained innovation and a customer-centric approach.