Indonesia-based insurtech platform Qoala recently secured $47 million in a Series C funding round co-led by PayPal Ventures and MassMutual Ventures. With over 5 million customers, Qoala offers personalized and affordable insurance products, including coverage for cars, motorcycles, property, personal accidents, travel, and health. The startup works with top local insurers and e-commerce firms to sell insurance through its website, app, and offline engagements. Qoala’s success demonstrates the potential of insurtech platforms to expand access to convenient, cost-effective insurance solutions in markets with low insurance penetration rates.

If you’re an insurance executive looking to build a successful insurtech platform, here are five lessons you can learn from Qoala’s funding round:

Step 1: Identify a Market with High Growth Potential

Indonesia has a relatively low insurance penetration rate, with less than 4% of the population insured. However, the country’s favorable socio-demographic profile, rapidly accelerating digital adoption, and low insurance penetration make it a market ripe with opportunity. Qoala’s success in Indonesia has enabled it to expand to Malaysia, Thailand, and Vietnam.

Step 2: Partner with Established Channels

Rather than going direct to consumers, Qoala has leveraged entrenched channels like leading consumer-facing platforms and traditional offline brokers in Indonesia, Malaysia, Vietnam, and Thailand. This approach has enabled Qoala to position itself as the embedded insurance solution of choice for more than 50 consumer-facing platforms and marketplaces, and the top insurance platform solution used by more than 65,000 traditional offline agents.

Step 3: Simplify the Claims Process

Qoala simplifies the claims process through image uploads and uses machine learning to detect fraud, benefiting both customers and insurers. By expanding access to convenient, cost-effective insurance solutions, Qoala has achieved 15x growth in gross written premium from 2020 to 2023.

Step 4: Build a Network of Agents

Qoala relies on a network of over 60,000 human workforce that it refers to as “agents” or marketers to sell insurance. This approach has enabled Qoala to expand its reach and achieve significant growth in gross written premiums.

Step 5: Explore Strategic Acquisitions and Partnerships

Qoala plans to deploy the fresh funds to explore strategic acquisitions and partnerships as well as in sprinkling AI across its channels. By exploring strategic acquisitions and partnerships, Qoala can expand its reach and offer more personalized and affordable insurance products to its customers.

If you’re an insurance executive looking to build a successful insurtech platform, Qoala’s success offers valuable lessons. By identifying a market with high growth potential, partnering with established channels, simplifying the claims process, building a network of agents, and exploring strategic acquisitions and partnerships, you can build a successful insurtech platform that expands access to convenient, cost-effective insurance solutions.

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Source: TechCrunch