Based on PasarPolis’ outlook, insurtech market growth in SEA possess three key factors. The company also viewed the omnichannel strategy can amplify the insurance sector’s progress.
Heaptalk, Jakarta — The Southeast Asia insurance market is poised for significant growth, with key regions like Indonesia, Thailand, and Malaysia representing about 60% of the total premiums underwritten. With less than 2% insurance penetration, Indonesia presents a market with significant headroom for growth.
According to the PasarPolis report, Indonesia‘s insurance technology (insurtech) market demonstrates promising potential with a growing demand for affordable insurance products. This insurtech platform identified several trends in the current market conditions, including bundling of products and value-added services, embedded insurance, partnerships with digital platforms, and an omnichannel distribution approach to tap into the growing market.
The Founder and CEO of PasarPolis Indonesia, Cleosent Randing, shares his optimistic outlook on the insurance market in Southeast Asia, including Indonesia by highlighting the following key factors:
- Increased demand for affordable insurance products. This enhancement is owing to the increasing awareness amongst the rising middle class.
- Innovative insurance products to meet customer needs. By leveraging technology and customer feedback, companies in the insurance sector can create contextualized insurance products that drive customer satisfaction and retention.
- Embedding insurance into daily activities. Embedding insurance through partnerships with relevant ecosystem players will contribute to serving the day-to-day insurance requisites of the customers.
This outlook aligns with McKinsey and Company’s identification of several trends in the insurance industry. According to the research, 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 are primarily focusing on rethinking their propositions and enhancing the customer journey. On the other hand, insurers collaborate strategically with digital platforms to embed Products into customers’ journeys, ideally suited to their requirements.
Amplifying the insurance sector through an omnichannel strategy
To continue strengthening the growth in the insurance sector, PasarPolis viewed an omnichannel strategy as an unconventional method to enable customers to interact with insurance companies through diverse channels. By offering an omnichannel platform, this insurance technology company claimed to simplify access to insurance products, from policy selection to claimed settlement.
“Through big data utilization, machine learning, and artificial intelligence, we plan to optimize our omnichannel strategy to deliver customized insurance products. We believe this method will enable us to address the customers’ needs by facilitating and accelerating the underwriting and claim processes while innovating highly relevant products for customers and customized to their needs,” Randing said.
PasarPolis’ omnichannel strategy aims to maximize product distribution through multiple channels, including B2B2C, agency-led, D2C, and B2B, which sets it apart from more traditional insurance sales and marketing approaches.
