Insurtech B2B Platform ‘Aman’ Receives 18 Billion Rupiah Funding
Aman (PT Insurtech Technologies Indonesia) has secured pre-seed funding of $1.2 million or equivalent to 18 billion Rupiah, led by Global Founders Capital (GFC) and Trihill Capital. Also involved in the round were 1982 Ventures, Alto Partners, and Atlas Global Kapital.
Since its founding in 2020 by Steven Tannason and Kan Le, Aman’s mission streamlines the administration and claims process for insurance benefits that the company aims for its employees.
To support these needs, Aman positions itself as a platform that combines insurance services, HR technology, and healthtech.
Within the system, there are a number of functionalities that make it easy for HR teams to plan or purchase insurance packages that suit their needs — by connecting with broker partners on the Secure network.
Then Aman also assists the HR team in distributing and managing the product according to the predetermined portion. For companies there will be a dedicated dashboard that is provided web-based; while for employees there is a mobile application provided to process claims.
In addition, in the application there are also a number of benefits that Safe is trying to provide to its users. Such as content related to health/wellness, special discounts for mental health services and pharmacy, to other supporting services such as Covid-19 tests. Aman targets medium-sized companies, including digital startups and MSMEs in Indonesia.
Insurance Potential in Indonesia
According to the latest data from the Financial Services Authority (OJK), insurance penetration in Indonesia is at 3.18%. The percentage includes life insurance (1.19%), general insurance (0.47%), social insurance (1.45%), and mandatory insurance (0.08%). Meanwhile, the density figure (average premium expenditure) is IDR 1.82 million.
This figure shows that there is still a large opportunity for the adoption of insurance products by new segments in Indonesia. However, the players are also challenged to carry out education and product penetration as a whole so that they can reach a wider audience.
Digital platforms are considered to be an effective medium to increase the affordability of insurance products. According to a DSInnovate report on the development of insurtech in Indonesia, some players are currently still targeting the retail segment through micro-insurance products.
The potential in B2B is still very large, considering that this landscape is still dominated by traditional players. Several startups are trying to get into this, both those that were previously B2C and then expanded to B2B, or those who have focused on providing an insurance platform for businesses from the start.
Apart from Aman, another insurtech startup targeting B2B is Aigis. They also recently announced the acquisition of $1 million in pre-start funding from Y Combinator, Init-6, Goodwater Capital, and a number of angel investors. The services provided are as a platform for providing health benefits for office employees.
Help Businesses Manage Employee Health Benefits
One sector that has experienced positive growth in the last three years is insurtech. One of them is evidenced by statistics on the growth of product adoption, throughout 2019 the premiums that have been recorded have reached 185.3 trillion Rupiah for life insurance and 80.1 trillion Rupiah for health insurance.
There are several basic reasons why insurtech is projected to thrive here. Citing the results of the Munich Re Economic Research study, Indonesia will lead the growth of health and life insurance premiums from 2019-2030, with a CAGR of 9.1%.
Seeing this opportunity, Steven Tannason then founded an insurtech platform called Aman. His experience while working at ByteDance and Google, then sparked the idea to establish a technology-based insurance startup.
Targeting B2B cement, Aman’s target users are companies that use employee benefits as a strategy to attract and retain talent. The monetization strategy implemented is, by helping insurance partners to serve their companies and employees on web and mobile platforms.
The current pandemic condition is proof for insurtech platforms like Aman to validate and develop business. Steven sees that many Indonesians are much more aware of the importance of health and safety nets.