BCP, the holding company of Indonesia’s leading e-wallet OVO, and ZA Tech, a technology venture for overseas markets of ZhongAn Online P&C Insurance Co. Ltd., have announced a joint venture to create an insurtech platform in Indonesia. The aim is to fast-track digitalization of Indonesia’s insurance industry and improve financial inclusion.
Bill Song, CEO of ZA Tech, said, “The low awareness of the benefits and role of insurance as a tool for protection, savings and wealth creation in Indonesia is something we seek to address. The current pandemic has further highlighted the need for insurance to safeguard people’s health and welfare.”
Indonesia remains a highly underinsured market, with only 1.7 percent out of the over 265 million Indonesians currently covered by private insurance. It is also the fastest-growing market in ASEAN, with robust economic growth averaging over 5 percent in the past three years.
The BCP-ZA Tech will act as a technology enabler for the Indonesian insurance market, supporting insurance companies to rapidly digitize their products and by automating cumbersome back-end processes and fractionalizing premiums, enabling them to offer digital insurance products faster and more affordably towards accelerating the digital transformation of the entire Indonesian insurance industry.
End consumers will thus benefit by being able to access a range of innovative insurance products in a range of categories with fractionalized premiums, driving mass adoption in line with BCP and ZA Tech’s vision of driving and improving financial inclusion.
ZA Tech, a joint venture between SoftBank Vision Fund 1 and ZA International, the platform for ZhongAn Online to explore international business development, is specialized in providing technical solutions and professional services to the insurance industry in Southeast Asia, Japan and Europe. ZA Tech is devoted to digitally transforming the insurance industry by partnering with multiple customer tech platforms to design and launch innovative insurance products, as well as providing the digital core system to insurers as the infrastructure for their digital distribution.
BCP is an Indonesian company whose subsidiaries include Indonesia’s largest payment platform OVO (PT Visionet Internasional), available on 115 million devices, and P2P lender Taralite (PT Indonusa Bara Sejahtera), collectively known as OVO Group.
“By using the insurtech platform built by BCP and ZA Tech, local insurance companies will be able to digitize their conventional offerings, thereby delivering products and services more effectively to the masses,” said Jason Thompson, president director at BCP.