Indonesian crowdfunding platform Kitabisa has expanded into the country’s insurance industry with the launch of Kitabisa Insurance, a sharia-compliant subsidiary.
This development reflects efforts to address the nation’s low insurance coverage, according to a report from DealStreetAsia.
Indonesia’s insurance penetration rate, currently at 1.4%, remains significantly lower than that of neighbouring countries such as Singapore (12.5%), Malaysia (3.8%), and Thailand (4.6%), based on the ASEAN Insurance Surveillance Report for 2022.
To increase this low rate, the Indonesian Financial Services Authority (OJK) has set a target to boost the nation’s insurance density from IDR 1.8 million per capita in 2022 to IDR 2.4 million by 2027.
DealStreetAsia’s report noted that Kitabisa Insurance plans to help bridge this gap by leveraging digital platforms to improve accessibility and transparency.
The company’s platform allows users to track collective funds, monitor beneficiaries, and follow claim processes in real-time, aligning with its commitment to sharia principles and good governance.
The announcement follows the launch of Kitabisa Insurance’s first product, SalingJaga Keluarga, in January 2024.
The SalingJaga Keluarga product offers sharia-compliant life insurance, with premiums starting as low as IDR 5,000 per month. Coverage options can reach up to IDR 2 billion and include additional services such as funeral arrangements and financial planning assistance.
The product has attracted over 20,000 members in the nine months since its launch.
Kitabisa Insurance has reported a net profit of IDR 2.56 billion in the first eight months of 2024, with total assets reaching IDR 175.4 billion by August. The company’s risk-based capital ratio stands at 192.72%, surpassing the OJK’s minimum requirement of 120%.
The Kitabisa Group owns 95% of Kitabisa Insurance through PT Kolaborasi Aksi Indonesia. This stake was secured through the acquisition of PT Asuransi Jiwa Syariah Kitabisa in October 2023, which was funded by a Series B investment round.
Investors included the International Finance Corporation (IFC), PT Maskapai Reasuransi Indonesia Tbk, Northstar, Argor, and Endeavor Catalyst.
The acquisition revived Kitabisa’s crowd-insurance product, SalingJaga, bringing it into alignment with sharia insurance principles.
Funds from the Series B round are being used to enhance capital reserves, develop infrastructure, and support the company’s overall ecosystem, which now includes both crowdfunding and insurance services.
As Kitabisa enters the insurance space, Indonesia’s broader insurance industry is bracing for significant regulatory reforms.
Fitch Ratings has predicted that upcoming changes, including stricter minimum equity requirements, will lead to consolidation in the market. These reforms are expected to impact insurers offering credit insurance and could ripple across micro-lending and consumer finance sectors.
The OJK’s forthcoming regulations will impose higher minimum equity thresholds for insurers by the end of 2026, with additional increases expected by 2028. Insurers offering comprehensive services, including credit insurance, are among those most affected. Reinsurers will also face increased capital requirements under the new rules.
Fitch Ratings indicated that many rated insurers are already on track to meet the 2026 requirements, though some in the non-life and reinsurance segments may need additional capital to comply with the 2028 standards. While some insurers may be able to generate sufficient capital organically, others could require external support to meet the new benchmarks.
