Rey Assurance Launches with $1M Funding - Holistic Insurance for Indonesia

Rey Assurance Launches Holistic Insurance Approach with $1 Million Funding

Typically, health insurance receives attention primarily when a need arises. Outside of such instances, policies often remain as mere documentation or wallet cards. Rey Assurance, an Indonesian insurtech company, is pioneering a different strategy. Upon enrollment, members gain access to a comprehensive health services platform.

Platform Features

• AI-Powered Self-Assessment Tools: Members can utilize artificial intelligence for initial health evaluations.
• 24/7 Telemedicine: Consultations with medical professionals are available around the clock at no extra cost.
• Pharmacy Deliveries: Prescriptions can be conveniently delivered directly to members.

The company is officially launching today, following a successful pre-seed funding round of $1 million led by the Trans-Pacific Technology Fund (TPTF).

Founding Team and Motivation

Rey Assurance was established this year by Evan Tanotogono, previously the head of digital channels at Sequis, a major Indonesian insurer, and Bobby Siagian, who previously held key engineering positions at Tokopedia and Sea Group. David Nugrho, a seasoned insurance professional, joins them as chief business officer.

The founders identified a significant gap in the Indonesian market: low adoption rates for life and health insurance. Tanotogono explained that the underlying issues are deeply rooted within the existing system.

These challenges encompass limited public awareness, costly distribution methods like agents and telemarketing, substantial premium costs, and intricate policy terms. Consumers often perceive insurance products as overly complex and feel they don’t receive adequate value for their investment.

Addressing Market Challenges

“We recognize that simply digitizing existing processes isn’t sufficient,” Tanotogono stated to TechCrunch. “A fundamental shift in approach is required.”

Rey Assurance offers plans starting at approximately $4 USD monthly, catering to individuals, families, and small businesses. The integrated wellness ecosystem is designed to enhance customer value and distinguish Rey from competitors within Indonesia’s expanding insurtech landscape, including companies like Lifepal, PasarPolis, and Qoala.

Tanotogono further elaborated that optimizing for digital distribution allows for reduced pricing and reallocation of resources towards wellness features. Currently, a large percentage of premiums, potentially 80-90%, is allocated to distribution channels.

Investment Rationale

Glenn Kline, managing partner at TPTF, emphasized that the strength of Rey’s founding team was a key factor in their investment decision. “We were impressed by their deep understanding of the existing pain points and their vision for creating a new platform from the ground up,” Kline told TechCrunch.

“Their core value proposition centers around a seamless and user-friendly integrated solution.”

Operational Model and Technology

Rather than handling underwriting directly, Rey collaborates with insurance partners to develop customized policies. The aim is to provide a fully online onboarding experience, completed in approximately five minutes, and a largely cashless claim and reimbursement process facilitated by Rey’s payment cards.

Claims can be submitted via the app by uploading photos of receipts if the Rey payment card isn’t accepted at a healthcare provider.

This process is significantly faster than traditional insurance reimbursement, which can take up to two weeks, thanks to Rey’s proprietary claim adjudication technology, according to Tanotogono.

Future Expansion and Wellness Integration

Currently, Rey’s wellness ecosystem provides access to primary care services, including chat and video consultations with medical professionals. Plans are in place to incorporate specialist access in the future.

Members can connect their health wearables to earn incentives, such as discounts or vouchers, for achieving specific activity goals. Rey’s long-term vision involves deeper integration of wearable data into insurance policies, enabling personalized premiums and coverage options.