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Shinhan EZ General Insurance makes its strategic entry into the Indonesian market

03:15:00 | 06 Nov 2023
Shinhan EZ General Insurance makes its strategic entry into the Indonesian market
JAKARTA (IndoTelko) - The Indonesian insurance sector experiences a transformative shift as South Korean insurance leader Shinhan EZ General Insurance makes its strategic entry into the Indonesian market.

In a groundbreaking partnership with Tap Insure, a strategic partner within the PasarPolis insurtech ecosystem, and a leading player in the Indonesian digital insurance sector, Shinhan EZ General Insurance, a direct subsidiary of South Korean conglomerate Shinhan Financial Group Co. Ltd, is positioned to revolutionize the Indonesian insurance landscape. This alliance marks the beginning of an extraordinary journey with the potential to redefine the dynamics of the insurance sector in Indonesia.

Shinhan EZ General Insurance's venture into the Indonesian market is underpinned by its expertise in microinsurance product development, honed through its experience in the competitive South Korean insurance industry. By joining forces with Tap Insure, as a part of PasarPolis, this South Korean powerhouse is primed to explore the dynamic landscape of Indonesian insurance, starting with a groundbreaking endeavor in auto insurance. The collaboration sets the stage for transformative possibilities, offering the Indonesian market access to cutting-edge insurance solutions driven by innovation and accessibility.

ByoungKwan Kang, Chief Executive Officer of Shinhan EZ General Insurance, expressed his excitement, stating, "As we enter the Indonesian market in collaboration with Tap Insure, we are not merely excited but deeply committed to a groundbreaking venture. Our decision to partner stems from Tap Insure's vision to transform the insurance landscape in Indonesia and Southeast Asia through the development of digitally native insurance products from start to finish, as well as the robust insurtech ecosystem provided by PasarPolis. The innovative potential in Indonesia's insurance sector is immense, and this partnership will allow us to introduce innovative insurance solutions while contributing to the growth of the market. We look forward to a future of transformative insurance offerings."

This partnership carries significant importance for Indonesia's insurance sector, which is poised for remarkable growth due to the country's dynamic economy and large uninsured population. With Indonesia’s insurance penetration still below 4%, there is ample room for expansion. Additionally, in the broader Southeast Asian context, the insurance market is on the verge of a substantial upswing, with Indonesia, Thailand, and Malaysia accounting for a significant portion of total premiums underwritten.

In light of this, the collaboration takes on great importance. It is founded on knowledge exchange, where PasarPolis, with the involvement of Tap Insure, eagerly seeks to leverage Shinhan EZ General Insurance's expertise in digital non-life insurance product development—a specialty finely honed in Korea. In return, Shinhan EZ General Insurance is venturing into the Indonesian market, which, in turn, facilitates PasarPolis's exploration of the microinsurance domain. The initial venture in their sights is an innovative auto insurance product, which sets the stage for a multitude of transformative possibilities.

Furthermore, Shinhan's primary objective is to integrate seamlessly into PasarPolis' full-stack insurance ecosystem through its strategic partnership with Tap Insure. In this effort, Shinhan is specifically targeting Korean companies operating in Indonesia. Additionally, PasarPolis plays a significant role as a technology platform within the collaboration between Tap Insure and Shinhan. This tech platform facilitates the distribution of insurance sales and streamlines the claims process, actively contributing to the insurtech aspect of the partnership.

Cleosent Randing, Founder and Director at Tap Insure, emphasized the pivotal nature of the collaboration, stating, "This strategic partnership represents a convergence of innovation, expertise, and a shared vision for the future of insurance in Indonesia. We collaborate with Shinhan EZ General Insurance as our partner in this journey because of their specialized knowledge in affordable automotive-related insurance, which aligns with our goal of making insurance accessible to all."

PasarPolis, Tap Insure, and Shinhan EZ General Insurance each bring their unique strengths to the table, creating a synergy that is transforming the insurance landscape in a highly positive way.

PasarPolis, with its digital-first approach and impressive record of over a billion policies, is a pioneering force in making insurance accessible to all, particularly within the informal sector. Bolstered by support from Indonesian tech giants Gojek, Tokopedia, and Traveloka, as well as prominent investors International Finance Corporation - a member of the World Bank group, Leapfrog Investments, Xiaomi, Argor, Beenext, SBI Investment, and more, PasarPolis has been the vanguard in ensuring insurance is within everyone's reach, amplifying its impact. Its collaboration with Tap Insure has further enhanced its capabilities, enabling it to become Indonesia's first official full-stack insurtech ecosystem.

On the other hand, Tap Insure stands out for its remarkable Risk-Based Capital (RBC) ratio, which surpasses an impressive 7,000%. The RBC is a vital metric that assesses an insurer's capacity to fulfil its long-term obligations, encompassing policyholder claims. Adhering to the regulatory guidelines of Indonesia's Financial Services Authority, the mandated minimum RBC requirement for insurance companies is set at 120%. Tap Insure's exceptionally high RBC ratio serves as a clear testament to its outstanding financial stability and unwavering dedication to serving policyholders.

Shinhan EZ General Insurance, aligning with Shinhan Financial Group and focusing on digital retail channels and collaborations with startups, adds a layer of cutting-edge technology and innovation to the partnership. This infusion of innovation promises to bring fresh and advanced insurance services to the market.

Peter Van Zyl, President of PasarPolis, passionately states, "This strategic partnership signifies a shared commitment between PasarPolis, Tap Insure, and Shinhan EZ General Insurance to revolutionize insurance in Indonesia. It's not just about business; it's about creating positive change. Our vision goes beyond profit; it's about bridging the insurance gap in Indonesia, ensuring accessibility, and driving innovation. Together, with the support of Shinhan EZ General Insurance, we aim to positively impact the lives of Indonesians. We are thrilled about the transformative insurance offerings that the future holds."

Looking forward, the companies share a vision for a continued partnership, aiming to explore innovative insurance solutions that cater to the ever-evolving needs of Indonesian consumers. The long-term vision is to lead the insurance revolution in Indonesia, driving innovation and inclusivity in the insurance sector by bridging the insurance gap in Indonesia which remains a major challenge to date.

In a rapidly evolving Indonesian insurance market, this partnership promises not only to redefine the insurance landscape but also to improve accessibility and customer-centricity. As Indonesia's insurance sector undergoes a profound transformation, Tap Insure and Shinhan EZ General Insurance are ready to be at the forefront of this transformative journey.(es)

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