The International Finance Corporation (IFC), a part of the World Bank Group that focuses on accelerating financial inclusion and literacy in various developing countries, has officially become an investor in PasarPolis, according to a statement issued by the Indonesian InsurTech company yesterday. PasarPolis raised $5m in equity finance from IFC.
Through this strategic collaboration, PasarPolis and IFC will jointly continue and strengthen PasarPolis’ mission to democratise insurance more broadly, one of which is through the development of microinsurance products.
Now, after operating for five years, PasarPolis has been able to provide insurance protection to as many as 11% of the Indonesian population or around 30m Indonesians. This is a positive achievement, given that the general insurance penetration rate in Indonesia is less than 2%.
PasarPolis founder and CEO, Cleosent Randing, said, “To date, the insurance gap and unequal distribution of insurance remain the major challenges in Indonesia. Through the adoption of technology, we will continue to bridge the gap for people who previously had difficulty accessing these important insurance services.
“PasarPolis’ technology is designed to provide the best end-to-end experience for consumers, from the product selection process to the claims process.”
With IFC’s support as an investor, PasarPolis will continue to develop its technology so that it can be more easily used by underprivileged people and those living in remote areas, who have limited access to digital technology, Mr Cleosent added.
It is worth noting that 90% of PasarPolis consumers are those who have never purchased insurance policies (first-time buyers), and 40% of PasarPolis’ policyholders are workers in the informal sector, including online motorcycle and taxi drivers, couriers, and online MSME players. PasarPolis has issued more than 775m insurance policies.
Mr Azam Khan, IFC’s country manager for Indonesia, Malaysia and Timor-Leste, said, “This timely investment aims to support the country’s effort to advance the development of the digital economy and achieve greater digital integration within ASEAN.”
PasarPolis plans to increase insurance penetration and literacy across the region, including Vietnam and Thailand in 2021.