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View all search resultsExecutive Column: AI to bridge insurance gap in Indonesia, Igloo says
Raunak Mehta, cofounder and CEO of Singapore-based insurance technology (insurtech) firm Igloo, spoke with The Jakarta Post's Ni Made Tasyarani on June 18 to explain how the company aims to bridge Indonesia's coverage gap and drive growth through partnerships with local companies and the use of artificial intelligence.
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Raunak Mehta, cofounder and CEO of Singapore-based insurtech and infrastructure provider Igloo (Igloo/-)
I
ndonesia continues to face a persistent protection gap, with an insurance penetration rate of below 3 percent, leaving ample room for the industry to grow.
Raunak Mehta, cofounder and CEO of Singapore-based insurance technology (insurtech) firm Igloo, spoke with The Jakarta Post's Ni Made Tasyarani on June 18 to explain how the company aims to bridge Indonesia's coverage gap and drive growth through partnerships with local companies and the use of artificial intelligence.
Question: Given Indonesia's insurance protection gap, what opportunities do you see in this market?
Answer: Any industry depends on, number one, is there a demand for the products that industry produces? As the middle class rises, there is a lot of asset ownership to be insured. At the same time, Indonesia is a country that is significantly impacted by calamities.
And then you have some tailwinds, with digitization being quite democratic. Close to 79 to 80 percent of people are already on digital platforms. But insurance penetration is hovering around 2.7 percent and even that is largely a function of the life insurance side of things.
So, actually, the protection gap that people talk about in Indonesia is even higher than what is shown, because a lot of insurance policies are not being bought as a safety net, but more from an investment point of view.
Today, we work with the leading e-commerce, e-wallets, telcos and consumer finance companies in Indonesia. We believe that digital platforms like Telkomsel, Dana, TikTok and Tokopedia, have a very massive reach to the wider population of Indonesia, thereby partnering with them is the best way to drive insurance benefits.
