Indonesian insurtech PasarPolis is in early talks with general insurer PT Asuransi Eka Lloyd Jaya, according to DealStreetAsia, which cited people familiar with the matter.

PasarPolis is evaluating strategic partnerships with insurance companies, and a merger is one possible outcome. However, it is not yet clear how a deal would be structured.

For its part, PasarPolis declined to comment on “rumours or market speculation”.

Meanwhile, Eka Lloyd had not responded to a request for comment at the time of the report.

A deal could give PasarPolis a more direct role in underwriting. The company currently operates mainly as a digital insurance distributor.

Its investors include LeapFrog Investments, Alpha JWC Ventures, Intudo Ventures and Xiaomi.

At the same time, a partnership with a technology firm could help Eka Lloyd expand its distribution, technology capabilities and scale.

Founded in 1981, the insurer serves individuals and businesses across Indonesia. Its coverage includes motor vehicle, fire, cargo, engineering, personal accident and business insurance.

In addition, the talks take place amid wider consolidation in Indonesia’s insurance industry.

Under OJK Regulation No. 23/2023, conventional insurers must hold equity of at least 250 billion rupiah by the end of 2026.

As a result, many firms are working to strengthen their capital positions.

Featured image: Edited by Fintech News Indonesia, based on image by creativaimages via Magnific.