German insurance giant Allianz moves further into Southeast Asia

estimated new revenue for legacy insurers

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German insurance giant Allianz has invested $ 35 million in Indonesia-based ride-hailing and local services company GO-JEK, via its digital investment arm Allianz X.

This funding comes as part of a $ 1.5 billion round for GO-JEK, which also includes Google, Tencent, and JD.com, among others. GO-JEK and Allianz first formed a partnership two years ago, through which the insurer provides GO-JEK with health insurance for its drivers and their families. With this capital injection, the two companies plan to further develop this partnership, with Allianz offering more insurance products and services for GO-JEK’s partners and employees.

Allianz will likely benefit from strengthening its ties with GO-JEK. This is Allianz’s first investment in a company headquartered in Southeast Asia, indicating its interest in the potential of new and emerging geographies. Its interest in this region specifically can likely be attributed to the growing gig economy in the area, which leaves many employees underinsured. These underserved employees open up a lot of opportunity for Allianz, as it further moves into the Southeast Asian market. Additionally, GO-JEK aims to expand into new markets — the Philippines, Thailand, and Vietnam — this month, which will further increase the potential customer base for Allianz’s insurance products.

Expanding its reach to new markets by working a local company is likely a smart strategy.By working with GO-JEK, Allianz has ensured that its services will see uptake in Southeast Asia. Moreover, providing funding for GO-JEK to expand into markets will help the insurer to onboard even more customers in the future. We will likely see more insurers looking to partner with gig economy startups, as the industry is getting increasingly bigger as more players emerge, leaving a large share of employees underinsured.

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