Indonesia's Massive InsurTech Opportunity: Cleo Randing of PasarPolis

Description

Indonesia has one of the world's lowest insurance penetration rates at 1.79%. This situation is set to change, dramatically... Indeed, Indonesian insurance adoption seems ready to advance rapidly behind the innovations of industry leaders such as our guest this week, Cleosent Randing, and his InsurTech platform, PasarPolis. PasarPolis and its industry peers are dealing with a totally clean slate, in that Indonesia is largely new to both offline and online insurance. Cleo details how the company has grown to its current pace of 50m policies per month, largely by removing traditional frictions to insurance adoption. For instance, a Gojek driver, Tokopedia customer, or Traveloka passenger can subscribe to any number of "micro-insurance" products with just a few clicks. This ease of insuring even the smallest of products or activities has been key to courting the digitally savvy millennial customer, on PasarPolis' way toward accessing an estimated $3b opportunity longer term. Cleo steps through a number of fascinating examples, from "contextual insurance" products with Gojek, to total loss insurance offerings on the Tokopedia e-commerce platform. in illustrating all of the barriers to adoption that players such as PasarPolis have taken down. According to Cleo, PasarPolis benefits from three clear tailwinds in driving online insurance adoption:  First, a positive Indonesian regulatory stance around InsurTech has been key to educating and promoting insurance products to Indonesia's population.  Secondly, the challenges that COVID-19 has thrown at the offline incumbent insurers allows PasarPolis; with a clear, complementary, partnership-oriented approach in working with Indonesia's offline insurance giants; to move products online, while also creating totally new digital solutions with its many partners.  Third but not least, is the massive impact that smartphone adoption has had on the immediate accessibility, and the precise targeting, customization and pricing of insurance that individuals have as they step throug