Indonesian online insurance firm RajaPremi targets Singapore, Malaysia
The insurance portal is raising funds to set up branches in Singapore and Malaysia by the third quarter of 2014By Meisia Chandra 14 Apr, 2014
If you don’t like to be called incessantly by insurance agents, and you’re one of those who get confused by too many insurance brands and products, maybe you should give online insurance a shot. Indonesia-based RajaPremi.com is one such service.
A marketplace for insurance products, it focuses on car insurance and personal/general insurance (not life insurance). Here you can compare prices, buy insurance, and even file a claim.
Founded by CJ Ong with his own saving in June 2012, RajaPremi later sold majority stake (65 per cent) to Singapore-based Fatfish Internet in July 2013. Now, Ong is in the middle of talks for another round of funding.
The insurance portal is aiming to hit the regional market soon. “We are raising funds for setting up branches in Singapore and Malaysia. Our target is the third quarter of 2014,” said Ong.
Ong is a Singaporean, but he chose to launch his business first in Indonesia. Why so? “Indonesia is a big market. Compared to Singapore and Malaysia, insurance industry here is less regulated,” said Ong, pointing out the business potential in Indonesia.
The founder claims that RajaPremi guarantees lowest prices among all insurance. “We dare to give low price because we expect on volume, and we eliminate the cost of middleman here,” explained Ong.
Currently there are about 50-100 transactions a month on RajaPremi, most of which are personal accident insurance. But the sales for car insurance is increasing steadily.
Huge prospect for car insurance
If you live in Jakarta especially, you’ll know how easily a car can get scratched because of the traffic density. But, out of 11 million registered passenger vehicles in Indonesia, only 0.5 per cent are insured, according to a report by Ernst & Young,
“In Singapore car insurance is compulsory, here is not. But I believe it will soon be compulsory (in Indonesia) too,” said Ong.
For car insurance, RajaPremi differs with conventional insurance agents in a way that there is no car assessment needed. “Once you pay the premium, your insurance is active and you get covered,” said Ong.
Ong believes for an effective marketing strategy, first make an excellent product. “Just like a restaurant, people will come if the food is good,” said Ong. The second is to make people aware of the product. Ong tried billboard advertising earlier, but it proved to be not effective. Now RajaPremi counts on SEO and social media.
“We also conduct contest and winners get ticket to movies or vouchers,” shared Ong.
The third is creating great user experience. This includes fast and easy service, where the experience of the customers usually starts with the web.
RajaPremi just added to its product line in the first quarter of 2014. Himalaya Pelindung, Bess Insurance, Jasindo, and CSI Insurance are the four new companies, bringing the total to 10 insurance companies right now. The other six include Zurich, MNC Insurance, Bess Insurance, Jaya Proteksi Takaful, Adira Insurance, Sinar Mas, and Avrist General Insurance.