Indonesian ewallet company Ovo and ZA Tech, ZhongAn Online’s technology arm has partnered to rollout a digital insurance marketplace, media reports said.
The new insurance platform will pave the path for insurance companies to digitise their products by automating back-end processes and fractionalising premiums, assisting the customers to purchase fractionalized premium-based insurance products.
It is reported that the growth of the insurance sector in Southeast Asia’s largest economy is very weak as it has only reached 2.77 percent in 2018. The reports are produced by General Insurance Association of Indonesia (AAUI). However, the insurance segment showed some growth after the outbreak of the Covid-19 pandemic as it has compelled people to carryout health insurance, etc.
Furthermore, only 1.7 percent of the country’s population uses insurance facilities due to the lack of knowledge about the benefits of insurance.
Bill Song, CEO of ZA Tech, told the media, “The current pandemic has further highlighted the need for insurance to safeguard people’s health and welfare. We are confident that this tie-up with BCP will fast-track digital insurance adoption and enable easy as well as secure access to digital insurance services for the Indonesian people.”
These are the other startup which are looking to enter the Indonesian tech marketplace: Gojek-backed PasarPolis and Sequoia-backed Qoala. There are few other companies which have rolled out their own digital platforms.
The global insurance sector has been blooming during the pandemic as people are purchasing health and other insurance policies to prevent any kind of uncertainty.