Insurance Companies in Fintech Trends
Technology and internet radically changed the nature of financial services. Fintech is evidence of disruption toward financial sector. After bank, fintech disrupt almost financial institutions including insurance companies.
According to AAJI (Asosiasi Asuransi Jiwa Indonesia) for example, fintech not only help sales of the insurance products, but also sped up the process of purchasing, payment of premiums, product description and claims of policyholders, so that customers do not need to come to the branch office of the insurance company. Moreover, fintech has been increased the interest of customers to buy various insurance products by the compactness supported by Internet and mobile technology.
AAJI considers fintech can be applied by insurance companies. Based on the data, there are approximately 520,000 insurance agency in Indonesia and there will be 10 million additional agents. So, it seems like promising mutual relationship between fintech and insurance companies.
In fact, fintech fundamentally has a role in maximizing the use of technology to change, accelerate or sharpen various aspects of general financial services available today, ranging from methods of payment, funds transfer, loan, and fundraising.
Cekaja.com as one of players in fintech vertical has joined relationship with some insurances company in Indonesia. This startup enables consumers to search financial and insurance products accurately, easily, and safely through its platform.
FWD Insurance Indonesia took a step in the industry by conducting several partnership to educate and encourage Indonesian to become social entrepreneurship. Prior to that, the company also launched a marketplace of insurance products called iFWD Liberate.
Eventually, the insurance industry has a new way to acquire customers. In addition, fintech create solutions to reduce costs and time the providers and users of financial services.