The Jakarta Post
Insurance company Allianz Indonesia aims to attract “hundreds of thousands” of new clients through a free life insurance product in partnership with GoPay Plus.
“We hope that hundreds of thousands of GoPay Plus users will want to join our free insurance program,” said Allianz Life Indonesia director and partnership distribution head Bianto Surodjo during a press briefing on Wednesday.
GoPay Plus clients who register with the program through the Gojek app are eligible to claim Rp 1 million (US$68.10) for death caused by sickness, including COVID-19, and accidents. Clients do not have to pay a premium, and this program is valid for six months.
Unlike GoPay, GoPay Plus allows users to transfer money to bank accounts and other GoPay Plus accounts. GoPay users can upgrade to the GoPay Plus service by registering their citizen identity card.
Bianto went on to say that, since the smartphone penetration rate in the country was high, he believed that introducing an insurance product through GoPay would attract more clients.
“Our mission is to insure a lot more people, including those who are underserved by insurance companies. This program can definitely accelerate financial inclusion as well,” he said, claiming that Allianz had acquired more than 30 percent of the life insurance market up until the second half of the year.
There are 93 million underbanked people in Indonesia, and only half of those with a bank account have access to services such as lending and insurance, according to the 2019 e-Conomy SEA report by Google, Temasek and Bain & Company.
Insurance penetration in Indonesia has been low for a long time. Indonesia’s insurance spending in 2018 was only 1.79 percent of the country’s GDP, much lower than in neighboring Malaysia at 4.4 percent, according to the latest data from the Organization for Economic Cooperation and Development (OECD).
Meanwhile, GoPay Plus aims to accelerate its user growth in the coming years following its success in doubling the number of users this October compared to last year.
“Amid this uncertain time, providing insurance is one of the ways our company gives extra protection to our users and their financial health,” said GoPay managing director Budi Gandasoebrata.
In May, e-wallet provider OVO partnered with insurance firm Prudential Indonesia to provide premium-free life insurance covering accidents and COVID-19 treatment within its platform for a limited period.