When AI Means Insurance for All

When AI Means Insurance for All

How Qoala Is Using AI to Build the Future of Inclusive Insurance

 

In Indonesia, insurance has long been a product for the few, not the many. Less than 4% of the population holds any formal coverage, constrained by high distribution costs, limited trust, and fragmented data systems. But for Qoala, one of Southeast Asia’s fastest-growing insurtechs, artificial intelligence isn’t an abstract experiment—it’s the practical key to changing that equation.

From paperwork to prediction

Qoala’s CTO, Martin Hong, describes the company’s AI adoption as “operational first.” The most immediate impact has come from automating data extraction across thousands of documents—vehicle registrations, policy forms, even customer-uploaded photos. Machine-learning models now perform these checks with 70–80% accuracy, reducing human review and cutting processing costs.

That efficiency flows directly to the bottom line. In Indonesia, the company’s largest market, lower agent servicing costs have lifted contribution margins.

Straight-through processing and smarter claims

AI is also transforming the customer and agent experience. Instead of filling out lengthy forms, customers now upload images and documents that are automatically read and verified. In motor and travel products, AI straight-through processing has become the norm—78% of train-insurance claims are now auto-approved, and claim-handling time has dropped by 80%.

Qoala’s chatbots, trained on policy documents and service logs, handle routine inquiries with higher accuracy and faster response times. In Thailand, these bots are even used for pre-purchase queries, helping agents close sales faster and improving service-level agreements across the network.

Risk detection in real time

Fraud detection is another frontier where AI is quietly reshaping economics. Models now flag abnormal agent behavior—such as repeated policy cancellations or unusual purchase patterns—and help verify authenticity through live image capture. A new live-camera assessment system prevents tampering by requiring customers to record short videos of vehicle damage rather than upload static images—the result: fewer false claims, faster settlement, and greater trust.

The power of proprietary data

While global insurers have access to large models, Qoala’s advantage lies in its proprietary micro-policy data—millions of small transactions from products like flight delay and gadget insurance. These granular datasets are becoming a source of competitive intelligence for pricing and risk modeling. As CTO Hong puts it, “Our value isn’t in building large models—it’s in embedding AI into fragmented workflows and using our data to make them work smarter.”

Barriers—and why they matter

AI adoption in Southeast Asia still faces structural challenges. Indonesia’s insurance IT systems remain fragmented, with inconsistent data standards and limited API connectivity. Concerns around privacy and regulatory clarity slow deployment, and expectations for “100% accuracy” can create internal resistance. Yet Qoala’s leadership views these friction points as part of the opportunity. As Prashant Pawar, CFO, notes, “AI doesn’t replace humans—it scales them. The goal is efficiency, not perfection.”

From micro to macro impact

These efficiency gains are already expanding access. By lowering claims costs and underwriting expenses, Qoala can offer smaller, more personalized policies profitably—travel, gadget, and embedded insurance that reach first-time customers through platforms like Maya and TikTok. The company expects continued margin improvement as its agency business becomes Indonesia’s largest digital broker, with group health and employee benefits products next in line for AI-enabled automation.

The takeaway

Qoala’s story illustrates what AI in emerging markets really looks like: relentlessly innovating at a fast pace while pushing with discipline toward operational precision. Every document scanned, claim processed, and fraud prevented brings insurance within reach for a broader segment of Southeast Asia’s population.

In a market where affordability defines access, AI isn’t just improving underwriting—it’s expanding inclusion. And as Qoala’s margins rise alongside coverage rates, it’s proving that responsible automation and profitability can scale together.