Open Insurance Access for MSMEs, Etiqa Collaborates with Startups

PT Asuransi Etiqa Internasional Indonesia (Etiqa) collaborates with a fintech startup company, PT Esta Digital Niaga (Let’s Get To Know). This collaboration is carried out in order to make it easier for Esta Digital Niaga customers to reach insurance products, especially Etiqa’s.

Acting Chief Marketing Officer of Etiqa Hendra Kusuma revealed, through this collaboration, Ayo Kenalin application users can find out more about Etiqa insurance products. So that they can adjust to their insurance needs, especially those in the micro segment category.

This is in accordance with Etiqa’s commitment to offer insurance protection for customers and prospective customers as an effort to protect when risks hit business activities, property, and loved ones.

“Meanwhile, our services have optimized the role of digital technology that allows transactions to be carried out in a seamless manner. online,” he said, Thursday (7/7/2022).

According to Hendra, based on a survey by the Indonesian General Insurance Association (AAUI) in the first quarter of 2022, when compared to conventional ones such as through agents, brokers, or direct marketing, general insurance product marketing through digital means in Indonesia is still very low at 0.7 percent.

This percentage is not proportional to the growth of digitalization of people’s habits in shopping in the realm of e-commerce.

Therefore, Etiqa and Ayo Kenalin have established a partnership, presenting information about various insurance products as well as literacy and education efforts for the community.

Insurance Concept

It is not surprising that until now there are still many people, especially in the micro segment, who still do not have insurance products. Moreover, they understand the concept of insurance and are interested in seeking protection through a combination of digital strategies and micro distribution channels.

“This collaboration between Etiqa and Ayo Kenalin aims to make it easier for the public to access financial services, especially insurance products and services. So far, not many insurance companies have reached the micro segment. This is in accordance with Etiqa’s aspirations, namely insurance for all people,” he said.

President Director of Ayo Kenalin, Erik Natapraja, added, “Come on, let’s know, is an aggregator application that has more than 500 thousand users and provides various financial services. The Ayo Kenalin application can also be used by agents to earn additional income through the referral system.”

“We really appreciate the collaboration with Etiqa, because with this collaboration we can introduce and provide the benefits of insurance service products to the wider community, especially those in the microeconomic segment, which are generally the unbanked people in Indonesia,” concluded Erik Natapraja.

OJK will Regulate Sales of Insurance Products Through Digital Platforms

The Financial Services Authority (OJK) is preparing rules for marketing insurance products through digital platforms or insurtech.

“For insurance companies that will sell and manage insurtech, we hope for commitment because digital sales carried out by the insurtech platform that are allowed to do so in the future are companies in the form of insurance brokers,” said the Chief Executive of the OJK Non-Bank Financial Industry Supervisor (IKNB), Riswinandi.

Insurance companies are expected to sell products that are easy to understand and provide assurance of customer refunds through easy claims. This is because these funds were previously paid by customers as premiums.

Riswinandi views that the use of digital technology developments can still be optimized to encourage the growth of the insurance industry efficiently.

Moreover, currently there are still many people who have been active using digital technology, but do not understand insurance.

only 31.26% of respondents had utilized digital financial services and only 9.9%used digital platforms to purchase insurance products online. This is based on a financial literacy and inclusion survey in 2019.

However, digital marketing procedures for insurance products that reduce the involvement of marketing agents need to be tightened, for example for Investment-Linked Insurance Products (PAYDI).

Previously, the government had issued Circular Number 5 of 2022 concerning PAYDI which is expected to encourage insurance companies to prioritize the principle of protection in order to maintain public trust.