Gia Butt | Nov 28, 2023 | 0
Qoala, Insurtech Firm, Cuts 80 Jobs in Indonesia and Malaysia
Insurtech startup Qoala recently made an official statement on July 31, 2023, announcing its decision to let go of 80 employees in Indonesia and Malaysia due to a drive for greater efficiency. This move follows a thorough two-year review of the company’s structure, which revealed redundancies and the need for strategic adjustments.
Qoala eases the transition for impacted employees with various measures. These include severance pay, extra compensation, extended insurance coverage, repatriation aid, recommendation letters, and added leave benefits for pregnant staff.
In the official statement, it was written that, “This step was taken to increase synergies within and across every department and business unit to lead a more efficient and sustainable business going forward. This decision was further motivated by a two-year comprehensive review of our organizational structure, which identify areas of redundancy and highlight the need for strategic adjustments.”
Harshet Lunani and Tommy Martin established Qoala in 2018. The company sells retail products like home, health, and auto insurance through its omnichannel platform. Qoala operates in Indonesia and Malaysia but also Thailand and Vietnam.
While focusing on efficiency, Qoala underscored its solid financial standing, with positive contribution margins at the group level. The business emphasized its capacity for long-term growth and enhanced unit economics despite the reduction in workforce.
In terms of funding, Qoala recently concluded a successful Series B funding round in March, securing over $72.4 million (equivalent to IDR 1.09 trillion) when combined with the May 2022 round of $65 million.
Qoala remains fully committed to its business units and operational markets, reiterating its dedication to enhancing people’s lives through accessible and affordable insurance. The company is resolute in its mission to create a positive impact for its customers.
Trends, Challenges, and Emerging Players
Data from the Financial Services Authority (OJK) indicates that financial literacy in the insurance sector in Indonesia rose from 15.8% in 2016 to 19.4% in 2019. Moreover, financial inclusion within the insurance sector increased by 1.05% from 12.1% in 2016 to 13.15% in 2019.
As per the OJK website, the growth of insurtech in Indonesia lags behind fintech, particularly online lending platforms. The latest OJK data from March 2023 reveals just two companies listed in the IKD insurtech cluster: Qoala and YukTakaful.
Different insurtech companies are emerging, covering insurance management, processing, sales, and data handling. In Indonesia, several new insurtech startups have started, like Bang Jamin. Founded in 2022, the company received funding from Northstar and BRI Ventures.
Rey Assurance, a startup, just raised more than IDR 63 billion in new funding. Rey Assurance also launched new protection products: ReyCare, ReyCard, and ReyFit. These complement the existing health protection card and cover outpatient and inpatient benefits.
The insurtech sector’s ongoing innovations aim to simplify insurance product systems and operations, making them more accessible and affordable for a broader audience, particularly the lower middle class.