Health insurance is the kind of thing people usually only think about when they need it. Otherwise, their policies are just paperwork in their files or cards in their wallets. Indonesian insurtech Rey Insurance takes a new approach. Once a person becomes a member, they also have access to a platform of healthcare services, including AI-based self-assessment tools, 24/7 telemedicine consultations without additional costs and pharmacy deliveries. The startup is launching stealthily today, having already raised $ 1 million in pre-seed funding from the Trans-Pacific Technology Fund (TPTF).
Rey was founded this year by Evan Tanotogono, former head of digital channel at Sequis, one of Indonesia’s largest insurers, and Bobby Siagian, who has held engineering positions at companies such as Tokopedia and Sea Group. They are joined by insurance industry veteran David Nugrho as Commercial Director.
They created Rey to address the low penetration of life insurance and health insurance in Indonesia. “When you look at the root causes and the pain points, you look at the systemic issues here,” Tanotogono said. These include low brand awareness, expensive distribution channels like agents and telemarketing, high premiums, and complicated policies.
“People have the impression that the product is really complex, that the process is difficult and that they are not getting the best value for the money. It has been like this for many, many years, ”he told TechCrunch. “We believe that we cannot just enter the market and digitize part of the value chain. “
Plans start at around $ 4 per month and are available for individuals or groups, such as families and small businesses. Rey’s wellness ecosystem was created to offer customers better value for money and help differentiate it from other companies in the growing insurtech industry in Indonesia. Other startups that have recently raised funds include Lifepal, Police Market and Qoala.
“Right now, if you look at insurance in Indonesia, if the premium is high, maybe 80% or 90% of it is used for the distribution channel. Now if we optimize something for digital distribution, we can lower the price and use the rest for the wellness features, ”Tanotogono added.
Glenn Kline, managing partner of TPTF, told TechCrunch that Rey’s founding team were “really the driving force” of their investment. “We felt that these people really know where the weak spots are and that they clearly understand how not to try to change the existing system, but to create a whole new platform from the start, where the core value proposition is is a simple and hassle-free integrated solution.
Instead of doing the underwriting themselves, Rey works with insurance partners to design exclusive policies. The goal is to have a fully online onboarding process that only takes around five minutes, and a mostly cashless claims and refund system via Rey’s payment cards. If their payment card cannot be used at the health care provider, claims can be submitted by uploading photos of the receipt to the app.
Tanotogono said this was much faster than traditional insurance providers, which can take up to 14 business days to pay off a claim, and made possible through Rey’s proprietary claims resolution technology.
Rey’s wellness ecosystem currently covers primary care services, including chats and video calls with medical providers. In the future, he plans to add specialists to the platforms.
Customers can also pair their wearable health devices for incentives. For example, if they achieve certain milestone or activity goals, they get rewards such as discounts or vouchers. Rey’s long-term plan is to tie wearable devices more deeply to her insurance policies, using the data to personalize policies and premiums.