LifePal Raises $9M Series A to Disrupt Indonesian Insurance

Simplifying Insurance for Indonesians: Lifepal Secures $9 Million Series A

Selecting an appropriate insurance policy represents a significant financial undertaking for many individuals. Lifepal, a Jakarta-based company, aims to streamline this process for consumers in Indonesia. They offer a platform where users can readily compare policies from over 50 different insurance providers.

A Growing Marketplace

Lifepal also provides access to licensed agents for guidance and facilitates the filing of insurance claims. The startup, recognized as the nation’s largest direct-to-consumer insurance marketplace, recently announced the successful completion of a $9 million Series A funding round.

ProBatus Capital, a venture firm with backing from Prudential Financial, spearheaded the investment. Additional participation came from Cathay Innovation, alongside returning investors including Insignia Venture Partners, ATM Capital, and Hustle Fund.

Founding and Growth

Established in 2019, Lifepal was founded by Giacomo Ficari and Nicolo Robba, both formerly of Lazada, in collaboration with Benny Fajarai and Reza Muhammad. This latest funding elevates the total capital raised by the company to $12 million.

Policy Offerings and Convenience

Currently, Lifepal’s partners offer approximately 300 policies covering life, health, automotive, property, and travel needs. Giacomo Ficari, also a co-founder of neobank Aspire, explained that Lifepal was designed to replicate the ease of online shopping when it comes to insurance.

“We sought to deliver the same convenient, fully digital, and rapid experience customers now expect from marketplaces like Lazada,” Ficari stated. “This level of convenience is currently absent in the insurance sector, which still heavily relies on traditional, in-person agent interactions.”

Market Potential in Indonesia

Indonesia’s insurance penetration rate stands at roughly 3%, but is experiencing growth alongside the country’s expanding gross domestic product and a burgeoning middle class. Ficari noted, “We are witnessing a pivotal moment for GDP per capita, and numerous insurance companies are increasingly focusing on the Indonesian market.”

Competition in the Insurtech Space

Several venture-backed insurtech companies are capitalizing on this increasing demand. These include Fuse, PasarPolis, and Qoala. Qoala and PasarPolis specialize in “micro-policies,” offering affordable coverage for items like damaged electronics. PasarPolis also collaborates with Gojek to provide health and accident insurance to its drivers.

Fuse, conversely, provides an online platform for insurance specialists to manage their businesses.

Lifepal’s Distinct Approach

Lifepal differentiates itself by not focusing on micro-policies and by enabling customers to directly purchase policies from providers, rather than through agents. This direct-to-consumer model is a key aspect of their strategy.

Customer Demographics and Behavior

Lifepal’s data indicates that around 60% of its health and life insurance customers are securing coverage for the first time. However, a significant portion of automotive insurance shoppers already held previous policies that had expired and opted to shop online instead of revisiting an agent.

Content and Education

Lifepal’s customer base closely aligns with the users of popular investment applications in Indonesia, such as Ajaib, Pluang, and Pintu. Similar to these apps, Lifepal provides educational content, particularly aimed at first-time investors and insurance buyers.

Lifepal Media, the company’s content platform, features articles on insurance policies and related financial planning topics. The company reports approximately 4 million monthly visitors to its website, including the blog, which serves as a lead generation source for its marketplace.

Customer Support and Agent Assistance

While Lifepal empowers users to independently compare policies, a substantial 90% of customers utilize its customer support line, staffed by licensed insurance agents. Ficari emphasized the complexity and cost of insurance, leading customers to seek guidance.

“We’ve observed that insurance is often intricate and represents a significant expense,” Ficari explained. “Customers prefer to carefully consider their options and have their questions answered, which is why we prioritize excellent customer support.” He further noted that Lifepal’s blend of self-service and support mirrors the approach of PolicyBazaar in India.

Scalability and Personalization

To ensure scalability, Lifepal employs a recommendation engine that connects potential customers with suitable policies and customer support representatives. This engine considers factors such as budget, age, gender, family status, and prior insurance experience.

Partnership with Assurance IQ

The investment from ProBatus Capital will facilitate collaboration with Assurance IQ, the insurance sales automation platform acquired by Prudential Financial.

ProBatus Capital’s Perspective

Ramneek Gupta, founder and managing partner of ProBatus Capital, stated that Lifepal’s “three-pronged approach” – encompassing educational content, an online marketplace, and live agent support – has the “potential to revolutionize how Indonesian consumers purchase insurance.”

Future Product Development

A portion of the funding will be allocated to developing products that simplify the claims process. These include Insurance Wallet, which will provide application support and guidance on claim procedures, and Easy Claim, designed to automate the claims process.

“Our objective is to provide end-to-end support to the customer, from initial research and policy comparison to purchase, renewal, and utilization, fostering long-term customer loyalty,” Ficari said.

Cathay Innovation’s Investment Rationale

Lifepal represents Cathay Innovation’s third insurtech investment in the last year. Rajive Keshup, investment director at Cathay Innovation, highlighted Lifepal’s phenomenal growth (12x) and its ability to maintain its aggressive 2021 plan despite the challenges posed by the COVID-19 delta variant, demonstrating its potential to replicate the success of global models like Assurance IQ and PolicyBazaar.