Existing investors also participated, including East Ventures, GGV Capital and the Indonesian conglomerate Emtek Group.

The company has closed its series B extension funding with over $25 million, bringing its three series B funding rounds in the past six months to a total of over $50 million.

Fuse CEO Andy Yeung said the fresh funds would be used to expand to markets across Southeast Asia.

“We believe that digital insurance transformation can help more people get protection with insurance. Hopefully, the insurance penetration rate can increase substantially in the coming years in Indonesia and Southeast Asia,” Andy said in a statement on Monday.

Indonesia’s insurance penetration relative to GDP remains low. In 2020, the insurance penetration rate was only 3.23 percent, data website Statista estimates.

According to the latest data from the Organization for Economic Cooperation and Development (OECD), Indonesia’s insurance spending in 2018 was only 1.79 percent of the country’s GDP, lower than in neighboring Malaysia’s, where it was 4.4 percent, and much lower than the average insurance spending in OECD member countries, where it was 8.92 percent of GDP.

Read also: Need for insurance rises as pandemic poses risks

The Jakarta-based company uses mobile applications to enable an agent-focused model, such as business to agent or broker (B2A). The company also has various distribution models enabling different channel partners to distribute insurance products cost-effectively to end customers using technology.

Southeast Asia’s middle class is estimated to have grown to 350 million consumers who are increasingly digitally savvy and have some $300 billion in disposable income, Fuse said in a statement.

“Fuse is well-positioned to tap into this huge, underpenetrated insurance market through its unique mobile platform that combines different selling models to suit the diversity of how consumers want to purchase insurance,” said Andy.

Read also: Insurance start-up Qoala gets $13.5 million investment

Fuse claims its app, Fuse Pro, is the first of its kind to enable agents and brokers to instantly and efficiently close insurance policies with their customers.

Established in 2017, Fuse said the app had more than 60,000 agent partners. The company has also worked with over 40 insurance companies to provide more than 300 insurance products for partners and end customers to choose from.

Furthermore, Fuse said that in the first three quarters of this year, its gross written premiums (GWP) exceeded Rp 1 trillion ($70 million), making it the largest insurtech company in Indonesia.

The company partnered with Tokopedia to launch the local e-commerce firm’s first transactional top-up microinsurance product in 2018 and has been its strategic insurtech partner since the third quarter of 2021.

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