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., today announced a strategic insurtech JV to create an insurtech platform in Indonesia, towards fast-tracking digitalization of Indonesia’s insurance industry and improving financial inclusion.
Indonesia remains a highly underinsured market, with only 1.7% 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% 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.
Whereas 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”.
This JV is the latest in a series of high-profile partnerships that OVO Group has attracted, further confirming its position as a technology enabler for the burgeoning Indonesian financial services market.
“At OVO Group, we are continuously learning and striving to find new ways of accelerating digital transformation and driving financial inclusion,” said Jason Thompson, President Director of BCP. “We are excited at the prospect of working with a global leader in insurtech who has experience in many partnerships. Through humble learning, we believe that together we can drive digital transformation in Indonesia for local insurance providers and thereby accelerate insurance adoption. We are looking forward to collaborating with Bill Song and learning together with ZA Tech, towards achieving our collective vision of advancing financial inclusion."
Bill Song, CEO of ZA Tech, said: “At ZhongAn, our aim is to redefine the insurance value chain and the internet ecosystem through proprietary technology and fulfill consumers’ diverse needs with our comprehensive and innovative digital solutions. We believe that the synergy with BCP will allow us to grow together with local insurance companies and help accelerate digital transformation for the insurance industry in Indonesia.”
Song continued: “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. We are confident that this tie-up with BCP will fast-track digital insurance adoption and enable easy as well as secure access to digital insurance services for the Indonesian people.”
“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 towards fast tracking digitization of Indonesia’s enormous insurance market,” finished Thompson.