Tapp launches microinsurance in Indonesia, with more markets to follow

Press Release, 17.03.2016

People with below normal standard of living are more vulnerable to risk, and have a greater need for a safety net in case the sole breadwinner in a family suffers an accident or even death, suddenly. Microinsurance is the key to ensure that the middle-low consumer segment have a protection mechanism for any risks to financial loss should a sudden and unforeseen event occurs. In light of this, microinsurance products are increasingly offered to the cash illiquid consumers in the emerging markets of Asia. These products are designed to be affordable, with specific benefits that cover basic protection.

As a mass market channel, Tapp Commerce has added microinsurance to its portfolio of products and services. On 10thJuly 2015, Tapp Commerce launched Tapp Market in Indonesia. Anyone can become a mobile ‘point of sales’ with a phone and a small deposit. They can store value online and safely transact via their mobile. The purchase of microinsurance products can be easily and conveniently done, in addition to buying airtime top-ups, games, music etc. Tapp Commerce will then deploy middlemen in the market to collect cash for products and services transacted. On 1 February 2016, Tapp Commerce appointed PT ACE Jaya Proteksi, a Chubb Company*, as its sole insurance partner to provide microinsurance products to its customers in Indonesia.

“Tapp solves a significant problem for emerging economies by allowing greater financial inclusion. Our vision is a world where all people have equal access to commerce and the opportunity it brings to improve the quality of life for all.  We are really pleased that our insurance partner, Chubb (formerly known as ACE), has developed innovative insurance solutions which are a perfect fit with ourcustomers and through this partnership, we can now also ensure equal insurance access to a huge segment of the market,” says Warren Sample, CEO of Tapp Commerce.

The partnership allows Chubb, to reach the consumer segment that might not otherwise be able to purchase their insurance policies due to unavailability of a credit card, bank account or remoteness. Non-traditional but mass market channels are vital for scale and Tapp Market enables Chubb to bring insurance products closer to the consumers in need of such protection. Consumers are able to pay for their policies with cash within their neighbourhood and make purchases through a trusted shopkeeper. Currently, it might require the consumer to take a bus to the nearest city to pay their bills, but Tapp Market allows someone in the neighbourhood or village to start collecting the payments locally.

The first insurance product – Personal Accident Plan – is expected to launch on 17 March 2016 in Indonesia.

With this new co-operation, Chubb and Tapp Commerce demonstrate their support for Indonesia’s National Financial Inclusion Strategy. In providing low-cost insurance products to a mass market segment, Chubb and Tapp Commerce are reaching out to a market potential of 77 million Indonesians who have thus far been unprotected**.

* On January 14, ACE Limited completed the acquisition of the Chubb Corporation, creating a global insurance leader operating in 54 countries under the renowned Chubb name. ACE and Chubb are now one. Learn more about the new Chubb at www.new.chubb.com.

** ’Microinsurance could potentially benefit 77 million Indonesians’ by World Bank, 26 October 2011.


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Heini Saari

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