Despite the global economic slowdown, the insurance market in the Association of Southeast Asian Nations (ASEAN) looks set to reach USD 161.80 billion in 2024. The industry is rapidly growing in countries like Singapore due to a high demand for health and life insurance products. With the region now integrating technologies into the insurance sector—known as insurtech—companies are benefiting from offering convenient digital solutions to customers.
The factors driving growth for insurance tech startups in Southeast Asia include acceptance of fintech solutions for payments, increased internet penetration, demand for convenient digital services, and the presence of smartphones. Furthermore, improved regulatory support and increased investment funding have boosted the sector.
Insurtech startups are revolutionising the insurance industry, bringing convenience, easy access, and simplified solutions for customers. They enable people to pay for coverage through financial technology options on their platforms and provide discounts and rewards. Furthermore, they are creating new job opportunities for tech-savvy insurers, which benefits the region's economy.
Below are five rising insurtech startups and what they are offering:
PolicyPal
Singapore-based PolicyPal helps customers manage their insurance and protect their wealth through digital solutions. It enables them to begin their financial journey through planning and personalised portfolio comparison, providing multiple options for health, travel, pet, vehicle and other types of insurance. Moreover, it uses gamified reward-based learning and has over 100,000 users.
AMTD Digital acquired PolicyPal in 2020 after approval by the Monetary Authority of Singapore (MAS). After the acquisition, the plan was to expand to other Southeast Asian markets.
Igloo
Another Singapore-based company is Igloo. It provides people-first insurance solutions and seeks to make them affordable and accessible for all. It has facilitated 500 million policies and strives to make its insurance products and services attractive to Southeast Asians. Its insurtech infrastructure is powered by artificial intelligence and big data, delivering partner-friendly applications, claims management systems, and more.
Igloo raised USD 36 million in pre-Series C funding, led by Eurazeo's insurance tech fund, OpenSpace's OSV, and La Maison, a Paris-based investor. The funding will help the company pursue mergers and acquisitions that will enable it to expand its market in ASEAN.
PasarPolis
Indonesia's PasarPolis democratises access to insurance products and services by simplifying the process for customers who are informal sector workers. It also seeks to speed up the process of purchasing policies, processing claims, comparing covers, and other services. It expanded to Vietnam and Thailand in 2019 to become a significant force in ASEAN's insurtech industry.
PasarPolis counts its investors in Gojek, Tokopedia, Traveloka, International Finance Corporation (IFC), Leapfrog Investments, Xiaomi, Alpha JWC Ventures, SBI Investment, Intudo Ventures, and GoVentures. Thus far, it has raised USD 71 million.
BIMA
Malaysia-based BIMA is a subsidiary of MILVIK BIMA that delivers mobile-powered health and insurance services. Its phone solutions democratise healthcare for citizens since people in underserved communities can own smartphones. Moreover, it offers telemedicine and discounts at its pharmacies.
BIMA MILVIK was acquired by CapitalSG, a Singapore-based investment and advisory firm. The company took a majority shareholding while LeapFrog Investments retained its minority position. CapitalSG injected fresh funds into the organisation as it restructured its operations to focus on profitability. The capital will help BIMA reach a larger market of underserved customers to offer insurance services.
Eazy Digital
Thailand-based Eazy Digital offers businesses its tools and platform to digitise insurance services. It makes tracking agent sales performance, creating quotations, performing analytics, and initiating campaigns and promotions easier. The company aims to help small insurers compete with larger companies by being able to manage agents, customer engagements, and operations.
Eazy Digital raised USD 850,000 in an oversubscribed Seed round. Investors participating in the funding included Seedstars International Ventures, Wavemaker Partners, Sasin Bangkok Venture Club, and Wing Vasiksiri. The company plans to use the money for marketing, customer attraction, and product development and to become the go-to option for startups that want to streamline and digitise their operations.
According to Statista Research, 43.4% of Southeast Asians had no insurance in 2022. Nevertheless, there are coverage options available for health, life, home, vehicle, travel, and personal liability, among others, for residents to pick from. Insurance technology can enhance individuals' personal well-being, helping protect their wealth by preventing them from paying out of pocket for problems which insurers can cover.
For tech startups in Southeast Asia to thrive, the regional governments must update regulations, set up business-friendly initiatives, integrate technologies like 5G soon, and adopt sustainability measures. While the global economic slowdown affected the investment market, founders should continue searching for strategic investors to partner with and obtain funding to grow their insurtech businesses. With the ideal backing, they can provide vital solutions to enhance the personal well-being of Southeast Asians.
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