Indonesia’s insurance market is undergoing a major transformation. With low insurance penetration and a growing digital-savvy population, Oona is leading the shift by delivering affordable, digitally-driven protection designed around customer needs.
Unlocking Indonesia’s $12B Insurance Opportunity: A Market on the Rise
Indonesia’s insurance market is on the cusp of a significant boom, driven by rising awareness, increasing digital adoption and regulatory reforms. In a recent feature by Nikkei Asia, several industry leaders, including Abhishek Bhatia; Founder and CEO of Oona, spoke about the sector’s growth potential.
The article outlines how low insurance penetration, just 1.3% of GDP in 2023, compared to 5.3% in Thailand, represents a significant opportunity in a country of more than 270 million people. Growing income levels, a shift in consumer behavior post-pandemic, and the convenience of digital products are fueling demand, particularly among younger Indonesians who value speed, simplicity and transparency. Regulators are also stepping up with plans to strengthen governance and even mandate certain types of coverage such as third-party vehicle insurance.
Meanwhile, both traditional and digital insurers are racing to meet the needs of this evolving market. Legacy providers are retooling their systems, while digital first players like Oona are building intuitive platforms and product experiences designed for a mobile-first generation. However, affordability remains a challenge,
Our CEO Abhishek Bhatia captured the scale of this opportunity, stating, “Indonesia will be a $10 to $12billion market in the next five or seven years, no doubt about that,” He emphasized the country’s strategic importance to regional expansion: “If you want to have a Southeast Asia strategy, you need to have an Indonesia strategy. You can’t do Southeast Asia without Indonesia being part of the map.”
Indonesia is one of the first two markets Oona has entered, a move reflecting our long-term belief in its growth potential. With a large, increasingly connected population and fast-evolving consumer behaviours, Oona is committed to building for the future in what we believe will become one of Southeast Asia's most dynamic insurance markets.
This post is a summary of an article originally published by Nikkei Asia. All rights reserved to the original publisher.
About Oona Insurance
Headquartered in Singapore, Oona Insurance is a leading digital general insurer in Southeast Asia, backed by global private equity firm Warburg Pincus. Established in 2022, Oona Insurance aims to become the general insurer of choice for both partners and customers through a buy-and-build strategy, leveraging the pillars of superior customer service, advanced technology and a well-established brand across Southeast Asia. The firm currently operates in two markets in the region: Indonesia and the Philippines.
For more information on Oona Insurance, please visit: www.oona-insurance.com
