OVO Gets Prudential For Sharia Life Insurance Services IDR 5,000
Financial technology startup (fintech) payment OVO hooked Prudential Life Assurance (Prudential Indonesia) to create a sharia life insurance service. This unicorn considers digital insurance in the country to be potential.
OVO Vice President of Financial Services Irene Santoso said the company relies on three strategies to attract more users. First, applying affordable costs. “The contribution fee is only Rp. 5,000,” he said during a virtual press conference, Wednesday (28/4).
Second, the registration process until the claim is done digitally. Finally, relying on the basis of sharia. “The demand for sharia services is growing rapidly,” he said.
In terms of insurance penetration, the Financial Services Authority (OJK) recorded only 3.03% per year last year. This is lower than the insurance penetration rate of 7% in ASEAN countries.
Singapore even achieved 9% insurance penetration. “This is an opportunity for OVO to develop insurance products,” said Irene. The OVO internal survey also shows that three out of 10 respondents are interested in having sharia-based insurance in the near future.
As many as 50% of them specifically want to have Islamic life insurance. The main reason for this is to secure savings from unexpected expenses.
Prudential Indonesia President Director Jens Reisch added, potential insurance services during the Covid-19 pandemic. “More and more Indonesians are meeting their protection needs,” he said.
Indonesian People’s Interest in Digital Insurance is Very High
Previously, research from reinsurance company Swiss Re also showed that the Indonesian public’s interest in digital insurance was enormous. This is because many have turned to online services during the coronavirus pandemic.
“More and more digital platforms are expanding business reach to financial services. Insurance companies must adapt their business models to be relevant and responsive to customer needs,” said Swiss Re Jolene Loh, Head of Client Markets, Life & Health Southeast Asia, Swiss Re Jolene Loh in a press release in February (2/2).
Research shows that 76% of Indonesians are interested in buying insurance products online. The most preferred platforms are e-commerce and fintech. The ease of using the application and low premium rates are the reasons respondents use online insurance services.
On the basis of this potential, OVO provides sharia life insurance services. To use it, users only need to click on the umbrella icon in the OVO application.
Then choose a sharia-based life insurance called PRUTect Care. After that, choose types like golden and platinum. Then enter your personal data and choose the premium payment option per month or year.
The benefits obtained include daily hospitalization, total disability due to accidents, death from infectious diseases to accidents.
Benefits of PRUTect Care for Customers
PT Prudential Life Assurance (Prudential Indonesia) is partnering with the payment platform and digital wallet OVO to participate in providing the PRUTect Care – Hospital Cash Collection of Sharia Life Insurance.
This digital-based Sharia life insurance product, the result of the collaboration between the two through a fully licensed digital insurance brokerage PT Salvus Inti, can be obtained by customers at an affordable price while still providing comprehensive protection that can be accessed easily.
Jason Thompson, CEO of OVO explained that the collaboration with Prudential Indonesia in launching this product also aims to increase the penetration of digital finance and insurance in Indonesia.
This, he continued, encouraged OVO and Prudential Indonesia to develop affordable Islamic digital insurance for the public.
OVO is also open to continuing to collaborate with parties who have the same vision, namely providing digital services that meet the various needs of the Indonesian people.
PRUTect Care – Hospital Cash offers two choices of membership periods, namely per month and per year, with very affordable contributions or premiums starting from IDR 5,000 per month.
Benefits that can be received by customers include protection for basic death benefits and other optional benefits such as daily inpatient (non-intensive care unit), daily inpatient (ICU) benefits, and others.