Axinan & Sompo Indonesia Forge Strategic Partnership for Movable All Risk Insurance
Sompo Indonesia launches phone protection (under its Movable All Risk Insurance Program) catered to Indonesia’s millennials using Axinan’s digital platform, igloo.
June 27, 2019
Jakarta, 27th June 2019 – Axinan and PT Sompo Insurance Indonesia (Sompo Indonesia) announce their strategic partnership to provide on-demand digital insurance solutions catered to Indonesia’s millennial population. igloo, one of Indonesia’s first insurance-centric consumer apps, marks a milestone for Axinan and Sompo Indonesia.
This partnership will see a deep involvement from Axinan to provide full-stacked solutions spanning across Sompo Indonesia’s entire insurance value chain from customer acquisition to assisting the insurer with establishing a digitized claims management infrastructure – all made possible through igloo. Through Axinan’s proven track record in machine learning, real-time risk assessment, and seamless claims infrastructure, the partnership would assist Sompo Indonesia to understand better, learn, and act upon the next hidden consumer trend and unlock revenue potential in the future.
In a recent article on insurance published by CB Insights, Indonesia is the second fastest-growing P&C (Property and Casualty) market and the fastest-growing market for life insurance – according to a market outlook report by Munich Re. In the same article, it cited data from the OJK that insurance iliteracy in Indonesia fell from 17.9 percent in 2013 to 15.8 percent in 2017.
Eric Nemitz, CEO, Sompo Indonesia said, “With a population of 264 million in Indonesia, the overall insurance penetration ranks among the lowest in the world at less than 2 percent. It is with the encouragement of the country’s regulators for insurers like Sompo Indonesia to arm ourselves with digital innovations to drive the adoption of insurance. As such, our partnership with digital transactions providers like Axinan is aligned with our mission to provide the best solutions and services and bring the most updated innovations for our customers. This, we believe, will enhance the lives of our customers.”
Nemitz adds, “Half of Indonesia’s population is under the age of 30, with a millennial population of 79.5 million – we are looking at a projected third largest middle class among the emerging markets by 2050. This indicates the need for insurers such as ourselves to make a concerted effort in better understanding of our future generation’s everyday needs – where we hope that the introduction of igloo will be able to roll out new and exciting innovations.”
Wei Zhu, Founder, and CEO, Axinan said, “In Indonesia, 60 percent of the adult population uses a smartphone with an average of 71 apps installed per smartphone device, and 34 apps used per month per device. This indicates that smartphone penetration in Indonesia has set in and will continue to grow with close to half of Indonesia’s population expected to own a smartphone by 2020. Our mission is similar to Sompo Indonesia, to provide an innovative platform that aims to tap on the potential of Indonesia’s millennial population that is hooked onto the internet economy.”
Raunak Mehta, Chief Commercial Officer, Axinan, said, “igloo envisions to create insurance buying as an engaging, and entertaining experience for Sompo’s customers. Axinan intends to overlay its machine learning and deep tech onto Sompo’s insurance infrastructure in Indonesia to give a cutting edge to its insurance products. The Phone Protection offering within igloo is the first step in how we’ve come together in identifying the everyday needs of the Indonesian millennial. We strive to work alongside Sompo Indonesia in uncovering more solutions in the coming months.”
According to a global study released by SquareTrade in November 2018, more than 50 million smartphones screens are broken every year. Smartphone owners accidentally broke more than 50 million phone screens last year (almost two per second), and replacing those screens cost them US$3.4 billion. The study found that 66% of smartphone owners damaged their phones in the past year, with cracked screens leading the way as the most common type of damage (29%). Scratched screens (27%) and non-working batteries (22%) took second and third place respectively, with touchscreen issues and chipped corners/sides tied at 16 percent each.
About Sompo Insurance Indonesia
Sompo Insurance Indonesia (SII) is part of Sompo Holdings, one of the largest general insurance companies in Japan and occupies as one of the top 10 in the world. SII has been present in Indonesia with more than 40 years of experience. Serving customers nationally in 18 branch offices by offering a variety of personal to company’s solutions. SII had awarded as the "Best General Insurance" with gross written premium above Rp 1 Trillion in 10 consecutive years from 2006-2016. In 2018, SII received the "Excellent Innovative Services in General Insurance Sector" award for the special mention category on Indonesia Insurance Consumer Choice Award 2018.
SII’s current product offers include travel insurance, fire insurance, motor vehicle insurance, transportation insurance, health insurance, earthquake insurance and other general insurance. SII is well-known to be strong in several fields including Brokers, Agency, Bancassurance, Leasing, Motorcycle Manufacturers, and Direct Marketing. All the 18 SII office networks spread across Indonesia such as in Surabaya, Medan, Bandar Lampung, Bandung, Denpasar, Malang, Palembang, Pekanbaru, Semarang, Solo, Balikpapan, Makassar, Jogjakarta, Batam to Pontianak to provide the best solutions and services to customers
Axinan is a Singapore-based insurtech firm that provides digital insurance for the internet economy. Leveraging on big data and machine learning, it creates products that are easily integrated into online marketplaces and platforms.
Since incorporation, Axinan has developed enterprise solutions offering free return shipping policy for e-commerce players built on a real-time risk engine to determine the likelihood of returns based on user demographics and shopping behaviour online. Since its graduation from PayPal Singapore’s fintech incubator programme in 2017, Axinan has offered its solutions through partnerships with Indonesian marketplace Bukalapak, Shopee, Lazada, China’s Tmall and other leading e-commerce and marketplace platforms.
Its latest offering comes with Axinan’s launch of igloo, Southeast Asia’s first on-demand digital insurance solutions – affordable for the everyday consumer. In February 2019, igloo’s first product offered Phone Screen Protection (PSP) plans providing flexible and affordable insurance coverage for broken mobile phone screens. In June 2019, Axinan partnered with PT Sompo Insurance Indonesia (Sompo Indonesia), to launch igloo in Indonesia, providing its proprietary tech capabilities.
Axinan is a Series-A funded company with backing from Linear Ventures and Openspace Ventures among other investors.