Indonesian donation and crowdfunding platform Kitabisa has officially entered the country’s insurance sector by launching Kitabisa Insurance, a sharia-compliant subsidiary, marking a significant step in addressing Indonesia’s notably low insurance penetration rate, according to DealStreetAsia.
The announcement follows the subsidiary’s introduction of its first product, SalingJaga Keluarga, in January 2024. Indonesia’s insurance penetration stands at 1.4%, significantly below neighboring Singapore (12.5%), Malaysia (3.8%), and Thailand (4.6%), as reported in the ASEAN Insurance Surveillance Report 2022.
The Indonesian Financial Services Authority (OJK) aims to increase insurance density from approximately 1.8 million rupiah per capita in 2022 to 2.4 million rupiah by 2027.
Kitabisa Insurance aims to enhance transparency and leverage technology to build trust and accessibility in the insurance market.
The platform allows members to monitor collective funds, beneficiary statistics, and claim processes in real-time, aligning with the company’s commitment to good governance and sharia principles.
The first product, SalingJaga Keluarga, offers pure sharia life insurance with premiums starting at 5,000 rupiah per month, providing coverage up to 2 billion rupiah, along with funeral services and financial planning assistance.
The product has attracted over 20,000 members within nine months of its launch.
Financially, Kitabisa Insurance reported a net profit of 2.56 billion rupiah for the first eight months of 2024, with assets totaling 175.4 billion rupiah as of August.
The company boasts a risk-based capital ratio of 192.72%, significantly higher than OJK’s average requirement of 120%.
Kitabisa Group, which holds 95% ownership in Kitabisa Insurance through PT Kolaborasi Aksi Indonesia, completed the acquisition of PT Asuransi Jiwa Syariah Kitabisa in October 2023 using Series B funding.
This acquisition revitalized the previously halted SalingJaga crowd-insurance program, aligning it with sharia insurance principles. The Series B round included investments from the International Finance Corporation (IFC), PT Maskapai Reasuransi Indonesia Tbk, Northstar, Argor, and Endeavor Catalyst, among others.
The funds are allocated to strengthen capital, infrastructure, and the overall ecosystem at Kitabisa.
Founded in 2013, Kitabisa has grown to manage over 10 million donors and channel more than 5 trillion rupiah to 300,000 fundraisers, expanding its impact to include insurance services as part of its philanthropic ecosystem.
