Health insurance is something that people usually think about only when they need it. Otherwise, their policies are just paperwork in their files or cards in their wallet. Indonesian Insurtech Ray Assurance Taking a new approach. Once a member becomes a member, they get access to a platform of healthcare services including AI-based self-assessment tools, 24/7 telemedicine consultations and pharmacy delivery at no extra charge. The startup, launching in stealth today, has already raised $1 million in pre-seed funding from the Trans-Pacific Technology Fund (TPTF).
Ray was founded this year by Ivan Tanotgono and Bobby Siagian, former head of digital channels at Sequis, one of Indonesia’s largest insurers, who held key engineering roles at companies including Tokopedia and C Group. They are joined by insurance industry veteran David Nugro as their Chief Business Officer.
He created Ray to address low access to life and health insurance in Indonesia. “When you look at the root causes and the pain points, you’re looking at the problems that settle here,” Tanotgono said. These include low awareness, expensive distribution channels such as agents and telemarketing, high premiums and complex policies.
“People think the product is really complicated, the process is difficult and they don’t get the best value for money. It has been like this for many years,” he told Nerdshala. “We believe that we are not just going to market and cannot digitize part of the value chain.”
Plans start at around $4 USD per month and Available to individuals or groups such as families and small businesses. Ray’s wellness ecosystem was created to give customers more value for their money, and help differentiate it from other companies in Indonesia’s growing insurtech industry. Some other startups that have recently raised funding include Lifepal, Passerpolis and Koala.
“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 some for digital distribution, we can lower the price and use the rest for wellness facilities,” Tanotgono said.
TPTF Managing Partner Glenn Kline told Nerdshala that Ray’s founding team was “really the driver” for its investment. “We realized that these people know exactly where the pain points are and they clearly understand how not to try to replace a legacy system, but to build a new platform from the very beginning, where the core value proposition is An integrated solution that is simple and hassle-free.”
Rather than doing the underwriting himself, Ray works with insurance partners to design proprietary policies. Target has an onboarding process that is completely online and takes just five minutes, and a mostly cashless claim and reimbursement system via Ray’s payment card. If its payment card cannot be used at the healthcare provider, claims can be submitted by uploading the receipt photo on the app.
Tanotogono said this is much faster than traditional insurance providers, which can take up to 14 business days for a claim to be reimbursed, and is made possible with Ray’s proprietary claims adjudication technology.
Ray’s wellness ecosystem currently covers primary care services, including chat and video calls with medical providers. In the future, it plans to add experts to the platform.
Customers can also link their health wearables for incentives. For example, if they meet certain step or activity goals, they receive rewards such as discounts or shopping vouchers. Ray’s long-term plan is to integrate wearables deeper into its insurance policies, using data to personalize policies and premiums.