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Rey seeks to redefine health insurance in Indonesia with a Netflix-style subscription model

Rey Indonesia co-founder and CEO Evan Tanotogono

In the rapidly evolving landscape of insurtech and healthtech, Rey Indonesia stands out with its innovative approach to health insurance. By transforming traditional health insurance into an all-encompassing, subscription-based service, the startup offers an experience akin to a Netflix subscription, but for healthcare. It claims to have over 10,000 active members and works with 100 organisations.

In 2022, the startup secured US$4.2 million in a seed round led by Trans-Pacific Technology Fund, Genesia Ventures, and RDS.

Rey was one of the ten finalists who pitched at the annual global Elevator Pitch Competition (EPiC) organised by the Hong Kong Science and Technology Parks Corporation (HKSTP) in April.

On the sidelines of the event, we spoke with Rey’s co-founder and CEO Evan Tanotogono, who discussed the company’s unique value proposition, regulatory navigation, and expansion plans within Southeast Asia.

Edited excerpts:

Rey Indonesia is at the intersection of insurtech and healthtech. How do you redefine health insurance or health protection? How does Rey work from a consumer’s point of view?

At Rey, we redefine health insurance by offering an end-to-end membership that combines prevention and protection in one seamless experience. Imagine it like a Netflix subscription for healthcare.

Also Read: Insurtech shines amidst overall funding decline in Indonesia in H1

This integrated approach makes our system highly efficient, resulting in a claim ratio that is at least twice as favourable as other health insurance providers in the country.

From a consumer perspective, Rey functions like a healthcare subscription service. You pay a monthly or yearly subscription fee. In return, you gain access to a range of services, including consultations with nutritionists, wearable devices to track your health metrics and rewards for maintaining a healthy lifestyle.

When you’re unwell, you can speak with a doctor and get medicines, all included in your subscription. We don’t charge anything beyond the fixed subscription fee, as everything is integrated and compliant with insurance regulations.

Do you work with all kinds of insurance companies?

We don’t work with many insurance companies because we are neither a broker nor are we a marketplace. We design our own product and collaborate with a single insurance company to register our product with the regulator. Essentially, we operate like an insurance company ourselves.

What opportunities do you see for Rey in Indonesia and elsewhere in Southeast Asia?

Over 280 million people live in Indonesia alone, but private health insurance penetration is only around 3 per cent. This is not just because people are reluctant to buy insurance, but also because insurance companies struggle to supply it sustainably due to high claim losses. We simplify the process by offering a subscription model, making it appealing to both consumers and insurance companies.

We currently have over 10,000 active members and work with 100 organisations in the archipelago. Last year, we grew sevenfold. This growth shows that we are delivering a health solution that resonates with both consumers and the insurance industry.

Looking ahead, we see potential in other emerging markets like the Philippines, Vietnam, and Cambodia, where similar challenges exist. In Hong Kong, a strategic market for insurance, we aim to leverage our technology to help local insurance companies.

How do you deal with the regulations in the highly regulated insurance and fintech industries?

We are the only platform registered with both financial and healthcare regulators. We bridge the gap between these two industries by telling a compelling story to each regulator. To the financial regulator, we emphasize the need to address healthcare challenges within the insurance framework.

To the healthcare regulator, we highlight our financial perspective on digital health. This dual registration demonstrates our commitment to operating at the intersection of both industries.

How do you educate people about your product given the low penetration of insurance in Indonesia?

Educating the market is crucial, but it’s equally important to make the product easy to sell. We focus on providing a healthcare solution that people can relate to, simplifying the concept of insurance into a subscription model.

Also Read: AI’s transformative role: Making insurance accessible and affordable globally

This approach has been effective, as evidenced by our membership base, which includes many from lower-tier areas who have never purchased insurance before. By making the product relatable and accessible, we’ve managed to penetrate almost 100 per cent of Indonesian provinces.

What are the major challenges you face as you grow?

One of the challenges is that our business model doesn’t fit the traditional broker or insurance marketplace models. We are redefining health insurance, which can be seen as both a competition and an opportunity by existing insurance companies. We are open to collaboration, offering to help improve their claim ratios and reach more people with our innovative approach.

Image Credit: Rey Indonesia.

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