Lazada, one of Southeast Asia’s leading e-commerce platforms, and Peak3 (formerly known as ZA Tech), a prominent InsurTech firm, have announced their collaboration to create a new joint venture aimed at transforming the insurance landscape in Southeast Asia. Launched in January 2025, this strategic alliance is designed to provide innovative insurance solutions to millions across the region by combining the strengths of both companies: Lazada’s extensive customer reach and Peak3’s technological expertise in digital insurance.
The venture addresses the substantial insurance gap in Southeast Asia, where a significant portion of the population remains without adequate insurance coverage. By tapping into Lazada’s vast e-commerce platform and Peak3’s state-of-the-art InsurTech solutions, the partnership aims to deliver affordable and accessible insurance products that meet the diverse needs of consumers in the region.
Strategic Goals and Vision
The principal aim of this joint venture is to close the considerable insurance coverage gap in Southeast Asia, where estimates suggest that only around 30% of the population has some form of insurance, with estimates varying by source, according to the ASEAN Insurance Council’s 2023 report. In particular, the partnership seeks to offer more accessible, user-friendly insurance solutions through a digital-first approach, capitalising on the rapid growth of mobile and e-commerce adoption in the region.
Xuanbi Bill Song, CEO and Co-founder of Peak3, stated: “We are thrilled to partner with Lazada, leveraging our expertise from similar ventures with Grab, Klook, and Carro. The early market traction has been remarkable.”
Leveraging Technology for Insurance Innovation
One of the key features of this venture is the integration of InsurTech, which utilises digital platforms, artificial intelligence (AI), and data analytics to enhance the customer experience and streamline operational processes within the insurance industry. Both Lazada and Peak3 will employ AI-driven algorithms to personalise insurance offerings based on consumer behaviour, preferences, and purchasing history, making the process more intuitive and tailored to individual needs.
“Peak3’s platform has truly helped us deepen our capabilities and offerings,” explained David Zheng, Head of Product, Insurance and Digital Goods at Lazada. “In less than half a year, we will be live across six markets with over a dozen seamless insurance propositions and a run rate of over two million policies per month. This partnership will allow us to achieve greater synergies and operational efficiencies, with the products and corresponding services managed centrally on one platform.”
Additionally, the partnership plans to improve the insurance claims process by integrating digital tools to expedite and simplify claims submissions. By leveraging digital platforms, users will be able to submit claims easily and track their status, reducing the complexities that often deter potential policyholders from engaging with insurance products.
Market Impact and Opportunities
Southeast Asia is a highly diverse market with varying levels of insurance penetration, with countries such as Indonesia, Thailand, and the Philippines being key markets for the joint venture. These nations boast high levels of mobile and e-commerce usage, making them prime targets for innovative digital insurance solutions.
The venture also opens doors for smaller local insurers who may lack the technological capabilities to reach a broader audience. By collaborating with Lazada and Peak3, these insurers can tap into a wider customer base, benefitting from advanced technological support and improved customer engagement.
Challenges and Considerations
Despite the significant promise of this partnership, several challenges must be addressed. The regulatory landscape for insurance in Southeast Asia is highly complex, with each country having its own set of rules and requirements. Navigating these varied legal frameworks will require careful attention to ensure compliance and smooth operations across multiple jurisdictions.
Moreover, while digital insurance is growing rapidly, consumer trust remains a challenge. Many potential customers are still hesitant to purchase insurance online due to concerns about fraud, unclear terms, and the complexity of policies. To combat this, Lazada and Peak3 are committed to promoting transparency and educating consumers about the benefits of their products.
Conclusion
The partnership between Lazada and Peak3 represents a significant milestone in the digital transformation of Southeast Asia’s insurance sector. By leveraging the power of e-commerce and InsurTech, the new joint venture aims to provide more affordable, accessible, and user-friendly insurance products to millions of people across the region. While there are challenges to overcome, particularly in terms of regulatory compliance and consumer education, the potential for positive change is vast. This venture is poised to play a pivotal role in reshaping the future of insurance in Southeast Asia.
