Kitabisa, an Indonesian donation and crowdfunding platform, has officially entered the insurance market with the launch of Kitabisa Insurance.

According to DealStreetAsia, this new sharia-compliant subsidiary aims to tackle the low insurance penetration in Indonesia, which currently lags behind neighboring countries.

Kitabisa Insurance emphasizes transparency and technology, allowing members to track funds, beneficiary information, and claims in real-time.

Their first product, SalingJaga Keluarga, is a sharia life insurance plan with affordable premiums ranging from 5,000 to 61,500 rupiah per month (US$0.32 – US$3.93).

It offers coverage up to 2 billion rupiah (US$127,844) and includes funeral services and financial planning assistance for beneficiaries.

Since its launch in January, over 20,000 members have reportedly signed up.

In its first nine months of operation, Kitabisa Insurance recorded a net profit of 2.56 billion rupiah (US$163,643) and held assets of 175.4 billion rupiah (US$11.21 million) as of August.

Kitabisa acquired PT Asuransi Jiwa Syariah Kitabisa in 2023, reviving its previously discontinued crowd-insurance programme, SalingJaga, which was shut down by the OJK in 2021 for operating without an insurance license.

As of August 2024, PT Kolaborasi Aksi Indonesia, a subsidiary of Kitabisa, holds 95% ownership in Kitabisa Insurance, with PT Arga Cipta Grande holding the remaining 5%.

This acquisition was funded by Kitabisa’s Series B investment round, which included participation from the International Finance Corporation and other investors.

Kitabisa, founded in 2013, has facilitated over 5 trillion rupiah in donations for various causes.

Featured image credit: Edited from Freepik

The article first appeared on Fintech News Singapore