Bumi Cakrawala Perkasa (BCP), the holding company of e-wallet firm Ovo, and ZhongAn Online’s technology arm ZA Tech Global has announced a joint venture to launch an insurtech platform in Indonesia.
The BCP-ZA Tech JV will help insurance companies digitize their products by automating back-end processes and fractionalizing premiums. This will help consumers choose from a range of insurance products with fractionalized premiums, they claim.
Established in 2011, Indonesia-based BCP’s units include payment platform Ovo, which is available on 115 million devices, and P2P lender Taralite. It aims to drive financial inclusion for 270 million Indonesians.
Only 1.7% of about 265 million Indonesians have some form of insurance, according to a report by The Jakarta Post. The low rate has been attributed to a lack of awareness about the benefits of coverage.
“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,” said Bill Song, CEO of ZA Tech.
ZA Tech is a joint venture between SoftBank Vision Fund 1 and ZA International aimed at providing technical solutions to the insurance industry in Southeast Asia, Japan, and Europe. The platform has partnered with multiple customer tech platforms to launch insurance products.
Ovo, the official payment partner of ride-hailing giant Grab, has also recently partnered with Alibaba-backed ecommerce platform Lazada to provide its e-wallet services to Indonesian customers.