Indonesia’s travel unicorn, Traveloka, has just added a new feature on its app. Traveloka Protect, as it says, offers insurance protections for the app users. This would mark the company’s official entrance to the insurtech industry.
The new feature has two kinds of insurance. The first one is life insurance. With this product, users can choose between a six months coverage period or one year coverage period. For this, Traveloka partnered up with Astra Life.
Further options for premium and sum insured are also available. And the cheapest premium is available only for IDR 70,000 ($5) for six months coverage. And users can claim the insurance for IDR 25 million.
Meanwhile, Traveloka Protect also offers two travel insurance products. One is comprehensive insurance and the other is Schengen visa insurance. With the later, users can claim for insurance when they travel to Europe.
Traveloka showed its commitment on the insurtech industry of the country by cutting up the complicated process of traditional insurance. For example, it does not require users to do a medical check-up before applying for the insurance. Being around 18 to 69 years old is the only requirement.
Traveloka Protect; not exactly the first step into insurtech
This is not the company’s first step on the insurtech industry, though. Previously, Traveloka has offered home protection insurance for users who are away for a vacation. Then it added the Schengen visa insurance a few months ago.
Along with Gojek and Tokopedia, Traveloka has also participated in an investment to PasarPolis, a local insurtech company. However, the partnership gained through the investment has yet to show its form. Though many expected the collaboration to take form through Traveloka XPerience.
The insurtech industry in Indonesia itself has a big potential. Only 2-3% of Indonesians are covered by insurance. The figure makes the country as the second lowest one in Southeast Asia. And insurtech has a high chance to turn the country insurance-literate.