IO, Jakarta – According to Statistics Indonesia (Biro Pusat Statistik – “BPS”), Indonesia’s population as per January 2019 is 267 million. This is one of Indonesia’s greatest assets, as it represents potential business opportunities in many fields, including insurance. The Financial Services Authority (Otorita Jasa Keuangan – “OJK”) notes that penetration of insurance in Indonesia is very low (3.01% in 2018). Data from an OJK survey shows that the insurance literacy index decreased to 15.8% in 2017 from 17.8% in 2013. Despite this large total, the number of insurance premiums in Indonesia nationally is only 4.7 million, mostly centered in major cities.
Indonesia’s physical geography as an archipelago of some 17,504 islands presents its own challenge when improving insurance literacy and access. However, with improved technology, insurance can be distributed digitally other than conventionally. Despite this fact, the Indonesian Life Insurance Association (Asosiasi Asuransi Jiwa Indonesia – “AAJI”) September 2019 reports show that the rate of premium digital sales is only 0.01% of the total of new premium sales rate, at IDR 54.57 trillion. This figure will potentially grow in line with the penetration of the internet in Indonesia, currently at 56%, or 143 million people.
Based on these facts, WE+ as an insurance market place cooperates with Alfamart, one of Indonesia’s biggest retailer chains, as well as with insurance companies ACA, Adira Shari’a Insurance and Simas Insurtech, in order to introduce the first digital claim access in Indonesia. This synergy will generate digital services for purchasing micro-insurance and submitting insurance claims, with funds drawable from the more than 13,900 Alfamart branches located all over Indonesia. However, all claims made by customers must still be approved by the insurance company.
For insurance companies, using these Alfamart branches as WE+ claim payment points will mean that claim distribution will be more effective, and capex more efficient, as there will be no need to establish special branch offices. In this way, WE+ as a smart insurance marketplace will continue to develop as an inclusive digital platform that everyone can access.
WE+ Founder & CEO Fifi Henirawati stated that all WE+ innovations are made to accommodate the needs of its clients, and to provide them added convenience. Therefore, WE+ is creating an online claim infrastructure for micro-insurance, in which claims must still be approved by relevant insurance companies. “OJK data per April 2019 shows that only 60% of Indonesian citizens have a bank account. WE+ is committed to the creation of access to digital technology that will make it more convenient for the people to submit their claims directly to relevant insurance companies. Our cooperation with Alfamart for the biggest largest claim in Indonesia is a good solution for the people,” she said.
Products covered in WE+ that can be claimed through Alfamart include ACA’s Dengue Fever insurance with a premium of either IDR 10,000.00 (for 3 months) or IDR 50,000.00 (for 1 year). For premiums valued at IDR 10,000.00, ACA sets the coverage of IDR 1 million to a maximum of IDR 10 million with a maximum purchase of 10 policies. For IDR 50,000.00 premiums, the coverage is IDR 2 million to a maximum of IDR 10 million through a maximum purchase 5 policies. Other than DBD insurance, ACA micro-insurance products, purchasable through WE+, include Earthquake Fund Insurance, Warisanku Personal Accident Insurance, Rumahku Home Insurance, Volcanic Eruption Business Interruption Insurance, and Tsunami/Quake Business Interruption Insurance.
Adira Shari’a Insurance products claimable through Alfamart are Shari’a DBD Insurance with premiums of IDR 17,500.00 (for 3 months), IDR 30,000.00 (for 6 months), and IDR 50,000.00 (1 year). They cover the costs for hospitalization at a maximum of IDR 5 million, and each client can purchase a maximum of 4 policies.
Simas Insurtech’s products that can be claimed through Alfamart are Simas Insurtech Flight Delay with premiums of IDR 50,000.00 (minimum flight duration of 2 hours) and IDR 75,000.00 (minimum flight duration of 2 hours). They provide coverage of IDR 500,000.00. Clients for the IDR 75,000.00 premium will be covered for their medical expenses, permanent disability or death.
Specific for ACA and Adira Shari’a Insurance DBD insurance products, after the claim process is approved by the insurance company, the client will be given an approval from WE+ in the form of a voucher code that they can redeem in an Alfamart branch within 7 days. The voucher claim codes from Simas Insurtech Flight Delay Insurance can be redeemed within 14 days.
Fifi stated that as a smart insurance marketplace, when it was established in 2018, WE+ only had one product and one insurance partner. However, in its second year, more than 20 insurance partners and 10,000 insurance products have joined in. Premiums can easily be paid both online and offline with WE+. All of these insurance products are validly curated by the WE+ team. On the other hand, client data protection is also crucial for WE+. Each data piece from any current or candidate customers is guaranteed to be safe at WE+ and will never be sold. “We offer various insurance products according to the needs and convenience of the customers. None of WE+’s insurance products are the same as any other. This is how curation is essential, and it is how we differentiate ourselves from other insurance marketplaces,” she said. “Naturally, we hope that more ordinary people will understand about micro-insurance, especially millennials. With this cooperation, WE+ means to accept the challenge of distance to all corners of Indonesia to provide equal protection for everyone, and to help with the penetration of micro-insurance in Indonesia.”
Alfamart Marketing Director Ryan Alfons Kaloh said that the thousands of Alfamart branches available is an added value that supports the realization of the primary objective behind WE+ and insurance companies’ collaboration. This program is the first online claim system that uses offline retail counters in Indonesia. “We are enthusiastic about this program, because by using Alfamart’s convenient network and electronic services, more people will be protected by insurance,” he said.
Similarly, ACA’s Director, Debie Wijaya, and Adira Insurance’s Chief Sales and Distribution Officer Auralusia Rimadiana hope that the collaboration will be beneficial for both parties, especially in terms of contribution to the increase of micro-insurance sales in Indonesia. This will in turn benefit people. “Through this synergy, we hope that ACA’s micro-insurance sales will improve and that it can cover citizens all over Indonesia. We also hope to improve micro-insurance product education and literacy, which will allow people to know these products better and benefit from them later,” she said.
“Adira Shari’a Insurance understands the ever-increasing need for protection against all possible risks. Therefore, we are present as a solution for various conveniences, among others ease of the claim process. In order to be able to reach more of the population, we need to synergize with partners with the same purpose, which is to provide convenience for clients, including when submitting claims. WE+ is a strategic partner for us. Therefore, we really welcome this cooperation and we hope to be able to improve understanding and utilization of Adira Shari’a Insurance’s micro-insurance products among the people, with practical claim services easily accessible by all our customers across Indonesia,” Auralusia said.
Simas Insurtech CEO Teguh Aria Djana also welcomes this cooperation. He believes that WE+ is the best choice of insurance marketplace partner that can best connect clients to the best insurance products at affordable prices. “Current technological advances naturally affect the people’s lives, among others by satisfying the need to use communication gadgets. Based on this fact, Simas Insurtech sees WE+ as a strategic partner by serving as our digital marketing partner, especially for micro-insurance products,” he said.