Leveraging its position as Malaysia’s first and largest online term life insurance provider, U for Life Sdn Bhd has recently partnered with PolicyStreet, an emerging insurance technology (insurtech) player, in a move to elevate the digital movement within the insurance industry.
The general public, the youths in particular, continue to perceive owning a life insurance policy as one of the least priorities in life. The insurance industry as a whole is perceived to be rigid, complicated and not user-friendly. This lack of understanding, need and trust of the industry have resulted in only one out of every 10 Malaysians to be adequately insured. Taking note of the need for a more flexible and customer-centric infrastructure, U for Life and PolicyStreet now formed a strategic partnership to bring positive changes to the industry by creating a synergy between the traditional and digital movements of the insurance industry.
General Manager of U for Life Sdn Bhd, Kenny Thing said, “It is indeed worrying that only 55% of Malaysians are currently insured with the demand for life insurance remaining relatively low compared to our neighbouring countries. By identifying the gaps in the market, we created an online solution that is not only convenient and hassle-free, but easy on the pocket – our policies go as low as RM9.85 a month, averaging lower than one meal at your favourite café.”
With the country moving towards its aspiration of becoming a global digital hub and developing its digital economy, there has been little adoption of digital innovation amongst the key players of the insurance industry, making it prime for disruption amongst newer and more innovative players, especially within the insurtech space.
Commenting further on the partnership, Chief Executive Officer of PolicyStreet, Lee Yen Ming said, “In making the process of obtaining insurance simpler, easier and more affordable, we hope our innovative approach will start shifting consumers’ perception of the insurance industry to a more positive one. Using our needs-based system, consumers’ protection needs can be better met if they are matched with the right product offerings. Coupled with the affordable pricing offered by U for Life, we hope to get more Malaysians insured and at the same time, and further elevate the importance of life insurance.”
By providing an avenue for direct awareness, education and knowledge, insurtech players hope to enable consumers to make informed decisions regarding their protection needs. Their added-value of simpler, easier and more affordable solutions play a key role in bridging the country’s protection gap and meeting the envisioned 75% insurance penetration rate by 2020.
About U for Life Sdn Bhd
U for Life Sdn Bhd is committed to work towards a fully-insured Malaysian population. We take pride in pioneering low-cost, instant purchase of life insurance products over the internet platform for Malaysians. Our paperless process isn’t just a breeze; it makes the buying process more efficient and easy for you. All premiums paid are received by Tokio Marine Life who is the insurer of the life insurance policy.
About Hannover Re
Hannover Re is the principal shareholder of U for Life Sdn Bhd. They are the third-largest reinsurer in the world with a gross premium of around EUR 17 billion* (RM 77 billion)**. Hannover Re has offices on all continents with around 2,500 staff and a network of more than 100 subsidiaries. The rating agencies most relevant to the insurance industry have awarded Hannover Re very strong insurer financial strength ratings (Standard & Poor’s AA-“Very Strong” and A.M. Best A+ “Superior”).
About Tokio Marine Life Insurance Malaysia Bhd
Tokio Marine Life Insurance Malaysia Bhd has over 65 years of presence in Malaysia and is financially strong with total assets of RM7.5 billion** as well as RM7.3 billion** life insurance funds. Today, Tokio Marine Life is a member of Tokio Marine Group in Japan with more than 17,000 employees, 46,000 agents and operates in 456 cities in 37 countries worldwide. The core company of Tokio Marine Group, Tokio Marine & Nichido Fire is financially strong with asset worth more than RM690 billion and has a credit rating⁺ of A+ by Standard & Poor’s Aa3 by Moody’s and A++ (Superior) by A.M. Best.
**As of 31 December 2015 based on the exchange rate from Bank Negara Malaysia
⁺As of 17 September 2015
PolicyStreet held by Polisea Sdn Bhd, is an insurance technology company, advancing insurance and healthcare through technologies. PolicyStreet is an online content aggregator, a value seeker, a premium contender and an innovation enabler in the insurance space with a mission to get everyone adequately protected without worrying about rigid policies and confusing fine print. PolicyStreet empowers consumers with the right insurance knowledge and acts as bridge to insurance providers by providing insightful customer data.
Source: Enterprise IT News