Axinan joins hands with Bukalapak to provide digital insurance solutions for Indonesians
The two firms’ collaboration will be a first in transit protection insurance.
August 27, 2019
Jakarta, Indonesia, 27 August 2019 – Singapore-based insurtech firm Axinan announced today their partnership with leading Indonesia eCommerce firm Bukalapak during a press conference. The collaboration between Axinan and Bukalapak will mark the first alliance between the two parties, amalgamating Axinan’s proprietary tech capabilities with Bukalapak’s rich understanding of its local eCommerce landscape. The two firms will be collaborating in the area of electronics and transit protection, with Sompo Insurance Indonesia (Sompo Indonesia) as the underwriter.
Through this partnership, there will be solutions for both merchants and customers on Bukalapak’s platform. Featuring a suite of fully-digital operations with dynamic pricing and claims management, merchants on Bukalapak’s platform can opt to protect their goods against the risk of total loss or damage during transit through igloo – Axinan’s consumer brand. For purchases of gadgets and electronics from Bukalapak, customers can buy protection against accidental damages.
According to a joint report by Google and Temasek on Southeast Asia’s internet economy, ASEAN’s eCommerce business is forecasted to increase more than three times, where for Indonesia, the online commerce market is projected to skyrocket from US$8 billion of spending in 2017 to US$65 billion by 2022. Citing the same Google-Temasek report, Brink News (a digital news service of research firm Marsh & McLennan Insights) addressing the changing nature of insurance distribution in Asia, ASEAN’s increasing mobile penetration and tech-savvy middle class population are the key drivers in the growth of the digital insurance industry. With the local eCommerce market set to boom, complementary services like delivery will naturally be on the rise as well. However, the risks associated with goods during transit is often not accounted for by the retailers, thereby needing to be borne by customers.
Commenting on the need for such solutions, Wei Zhu, Founder and CEO, Axinan said, “With the booming eCommerce scene in Indonesia, there is an increasing gap we see arising due to the inherent risks associated with the eCommerce market – damage and loss during transit. We are actively seeking to address these risks by providing products in collaboration with our insurance partners. The objective is to make these products easy, accessible and available to those who need it the most. With this collaboration with Bukalapak, we are able to leverage their extensive local network of customers and thereby provide our solutions to a wider audience.”
Victor Lesmana, Director of Payment, Fintech, and Virtual Products, Bukalapak said, “We are thrilled to partner with Axinan to provide our customers with a shopping experience with an ease of mind. Moreover, Axinan’s fully digital claims will allow us to provide our customers with a seamless, secure, and convenient shopping experience, which is in line with our mission anchored on technological innovations created to improve the lives of users. This partnership is indeed a timely one and will give us a competitive edge as we will be able to cater to our customers’ needs.”
Raunak Mehta, Chief Commercial Officer, Axinan said “In today’s age it is a widely known fact that e-commerce drives penetration and inclusion faster-compared to other business models. We believe the synergistic potential of this collaboration would deliver a great impact in terms of driving insurance penetration in Indonesia while providing peace of mind to Bukalapak’s customers against any risks. We look forward to a deep-rooted partnership with Bukalapak – gadget & transit protection being steps towards more innovative solutions in the future.”
Headquartered in Singapore, Axinan has operations in Australia, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and development offices in China and Taiwan.