The most difficult financial decision a person can make is choosing an insurance policy. Lifepal, a Jakarta-based startup, wants to make it easier for Indonesians by providing a marketplace that allows them to compare policies from over 50 providers and get assistance from licensed agents. They also allow users to file claims. According to the startup, it is the largest direct-to consumer insurance marketplace in Indonesia. Today, it announced that it raised a $9 Million Series A. ProBatus Capital was the venture firm backing Prudential Financial. Cathay Innovation participated with their returning investors Insignia Venture Partners and ATM Capital.
Lifepal was established in 2019 by Giacomo Ficari, Nicolo Robba and Benny Fajarai. This new funding brings the total to $12 million.
The marketplaces partner currently offer around 300 policies for life and health as well as travel coverage. Ficari also co-founded neobank Aspire. TechCrunch reported that Lifepal was designed to make it as easy as possible for customers to compare, buy, and claim insurance.
He said that customers have the same experience today on Lazada--the same convenience, all-digital, fast deliverywe saw in insurance, which still operates with face-to-face agents as 20-30 years ago.
The insurance penetration rate in Indonesia is just 3%. However, the market is growing with the country's gross domestic product due to a larger middle class. Ficari said that we are at a tipping moment in terms of GDP per capita, and that a lot more insurance companies are now focusing on Indonesia.
Fuse, PasarPolis, and Qoala are just a few of the venture-backed startups insurtech that are tapping into this market. PasarPolis and Qoala both focus on micro-policies or cheap coverage for devices that have been damaged. PasarPolis partners with Gojek in order to provide drivers with accident and health insurance. Fuse offers insurance professionals an online platform for running their businesses.
Lifepal is a unique company because it does not sell micro-policies and its marketplace allows customers to buy directly from providers and not through agents.
Lifepals data shows that approximately 60% of its life and health insurance customers are purchasing coverage for the first-time. Many automotive insurance customers had policies in place before but they were no longer covered. They decided to shop online and avoid going to an agent, so that they can get new coverage.
Ficari stated that Lifepals' target customers are similar to the investment apps that are growing in popularity among Indonesia's middle class (like Ajaib Pluang, Pintu and Pluang). Lifepal follows a similar strategy to many of these apps that offer educational content since most of their customers are millennials who are investing for the first-time. Lifepal Media is the content section of the app. It focuses on articles that are useful for those who are looking into insurance policies or other related topics, such as personal financial planning. According to the company, its website, which includes its blog, has more than 4 million visitors per month, making it a great channel for its marketplace.
Lifepals allows people to compare policies online, but many also rely upon its customer support line which is staffed with licensed insurance agents. Ficari stated that 90% of its customers use it.
Ficari said that insurance can be complicated and expensive. Ficari said that people want to take their time and have lots of questions. Lifepals approach of allowing self-research and providing support is similar in nature to PolicyBazaar, India's largest insurance aggregator.
Lifepal's recommendation engine matches potential customers with policies, customer service representatives and policies to keep its business model flexible. It takes into account data such as age, gender, and family composition.
ProBatus' Lifepals investment will enable it to work with the insurance automation platform AssuranceIQ, which Prudential Financial acquired two years ago.
Ramneek Gupta, founder of ProBatus Capital and managing partner, stated that Lifepal's three-pronged approach (its education content, online marketplace, and live agents for customer service) has the potential change Indonesian consumers' perceptions about insurance.
Lifepals funding will go towards the development of products that make it easier for customers to claim policies. Insurance Wallet is a new product that will provide support for customers in claiming policies. This includes assistance on how to apply, such as where to take their car to repair or what hospital to go to. There will also be escalation if a request is denied. Easy Claim will automate the claims process.
Ficari stated that the goal is to be there for customers from start to finish, including reading content, comparing policies and buying, renewing, and using them.
Cathay Innovations' third insurtech investment is Lifepal in the last 12 months. TechCrunch was informed by Rajive Keshup, an investment director at Cathay Innovations, that the company had grown phenomenally in the past year (12X) which is a testament to the fact that Lifepal is well on track to duplicate the success of global models like PolicyBazaar and Assurance IQ (US).
