ZA Tech, ZhongAn’s insurtech unit, has acquired a stake in Bank Aladin, a shariah-compliant digital lender in Indonesia, according to a report by The Strait Times and DealStreetAsia.
Dyota Marsudi, president of Bank Aladin, announced Wednesday that the two companies have taken on a “strategic partnership,” with ZA Tech acting as both investor and business partner to help Bank Aladin grow its presence in Indonesia’s digital ecosystems.
Marsudi said that the collaboration will enable Bank Aladin to offer digital insurance to its customers, adding that the full details of the investment will be shared soon.
This development will see ZhongAn further establish its presence in Southeast Asia, where insurance penetration rates remain relatively low. In Indonesia specifically, only 6.5% of the population has life insurance protection, according to data from the Indonesian Life Insurance Association (AAJI).
The Chinese online insurer first made headway in the ASEAN region with the 2019 joint venture between its subsidiary ZA International and the transportation service network Grab. Through this venture, ZhongAn was able to establish a digital marketplace for customized insurance policies sold at reduced prices.
“Since inception, ZA International has focused on building technology capacity and fostering platform cooperation to support overseas business development. Going forward, we hope the Asian market will act as a bridgehead in expanding our business globally with the mission of redefining insurance in the connected world,” ZA International chief operations officer Bill Song said at that time.
