Indonesian insurtech firm PasarPolis said it has received US$5 million in equity financing from the International Finance Corporation (IFC), a part of the World Bank Group that focuses on accelerating financial inclusion in developing countries.
As part of the strategic investment, PasarPolis and IFC will work on initiatives aimed at making insurance more broadly available, according to a statement. This includes developing affordable micro-insurance products catered to the needs of society.
PasarPolis also said that it will focus on increasing penetration and literacy across the region, including Vietnam and Thailand, in 2021.
“From an industrial point of view, Vietnam and Indonesia have similar criteria for the insurance market, although awareness of insurance in Vietnam is still relatively low compared to Indonesia or Thailand, which is maturing fast,” said PasarPolis founder and CEO Cleosent Randing.
The company started in 2015 as an online insurance marketplace. It then expanded to become a tech platform for customized and affordable insurance products. The startup also went on to receive backing from companies such as Gojek, Tokopedia, and Traveloka as well as VCs SBI Investment, Alpha JWC Ventures, and Intudo Ventures.
To date, the startup claims it has provided insurance protection to as many as around 30 million Indonesians, or about 11% of the country’s population. PasarPolis also said that 90% of its customers are first-time buyers while 40% of its policyholders are workers in the informal sector, including motorcycle and taxi drivers, couriers, and online MSME players.