Rising to the Challenge: Democratizing access to insurance in Southeast Asia

Qoala is a dynamic Indonesia-based insurtech startup that leverages technology to provide affordable and accessible insurance solutions. The company transforms the entire range of insurance solutions, from product distribution to claims management by integrating machine learning and digital workflows. This approach enables Qoala to offer bite-size, low-ticket insurance products that are embedded in high-frequency use cases, such as flight delays, phone screen protection, and micro health insurance.

Market Landscape and Challenges in Southeast Asia and Indonesia

The insurance sector in Southeast Asia, particularly in Indonesia, is characterized by low insurance penetration. Data from the Indonesian financial authority OJK show that penetration of both general and life insurance products reached less than 2% of the population in 2019. Key contributing factors include limited insurance literacy, lack of awareness, and high cost of traditional insurance products. The OJK reported that insurance sector literacy rates are below 40%, highlighting a significant lack of consumer understanding and interest in insurance.

Qoala was co-founded in 2018 by CEO Harshet Lunani and Deputy CEO Tommy Martin. Both saw the critical gap in the Southeast Asia insurance market and teamed up to “democratize insurance” in the region by leveraging their complementary backgrounds. Harshet has more than seven years of experience in insurtech, and prior to that worked in BCG and Merrill Lynch. Meanwhile, Tommy brings to the table more than 15 years of experience in the tech and consulting industry, having worked at Accenture, EY and Indonesia’s digital travel platform Traveloka. Harshet has a Master’s degree from Oxford University, and Tommy has a degree in Mathematics and Computer Science from University College London.  

Qoala’s Solution to the Market Problem

Qoala offers a wide variety of insurance products to its consumers, enabled by its network of 60 partner insurance companies, Qoala works with agents who are digitally empowered by its app to reach more end consumers. Instant commissions and policy issuance enable its agent network to deliver superior service, while a streamlined end-to-end payment flow ensures rapid reconciliation and validation. What further sets it apart in the competitive landscape is an operational dashboard that provides transparency and control, and facilitates seamless interactions across stakeholders in the insurance industry.

Ready for Further Development and Innovation

Qoala’s mission to democratize insurance continues. The company recently attracted investment in its Series C funding round in its preparation for further expansion and product innovation, raising USD47 million led by prominent players like PayPal Ventures and MassMutual Ventures. The round was joined by MUFG Innovation Partners (MUIP), Ohana Holdings, and other existing investors such as Flourish Ventures, Eurazeo and AppWorks. Qoala, which already has presence in Thailand and Vietnam, plans to use the funds to further expand geographically across Southeast Asia, and ignite business growth through new distribution channels and products. Investments in technology like artificial intelligence will help to streamline operations and further improve stakeholder experience.

Harshet said that.

Qoala’s Series C funding “demonstrates market confidence in our strategy and mission. Our mission to democratize insurance remains steadfast, and with this new infusion of funds, we are better equipped than ever to drive innovation and impact lives and livelihoods.”

Meanwhile, MUIP’s President and CEO, Nobutake Suzuki observed that.

Insurance penetration in Indonesia remains low.

He added.

We respect Qoala’s omnichannel approach to enhancing insurance access in the under-penetrated market. We also hope that Qoala can strengthen its collaboration with Bank Danamon to enhance financial inclusion and insurance penetration.

Collaboration with MUFG and Bank Danamon

MUIP made its investment through the MUIP Garuda Fund 1, which was launched in January 2024 to facilitate open innovation between innovative startups and Bank Danamon, MUFG’s partner bank in Indonesia. Tommy hopes to continue collaborating with Danamon and MUIP to increase public access to quality insurance products. The company plans to collaborate with Bank Danamon across the banking ecosystem, including opening Danamon bank accounts for its employees and agents, as well as cross-selling bancassurance products to their consumers. This collaboration is expected to catalyze financial inclusion and insurance penetration in Indonesia.