US private equity firms bets $350m on SEA digital insurance platform Oona

Low market penetration and rising internet adoption offer big upside potentials.

US private equity firm is investing $350m in Southeast Asia digital insurance platform Oona Insurance to capture the market in the region.

Oona plans to take up market shares from the region which boasts a population of 662 million in 2020 with a combined gross domestic product of $3t.

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The digital insurance platform kicked off storming the market by acquiring PT Asuransi Bina Dana Arta in Indonesia and Mapfre Insular Insurance Corporation in the Philippines, allowing the platform to enter the motor, property and group health cover market. Oona also laid out plans to introduce health and travel-related insurance in the region to ride the increasing adoption of the internet, e-commerce, and digital payments wave.

“General insurance is a significantly underpenetrated industry in the region and a sector that is ripe for digital disruption. Legacy systems and mindset among incumbents offer room to build “a strong tech and brand spine” to compete in the industry,” said Abishhek Bhatia, group CEO of Oona.