According to the Fintech Malaysia Report 2022, there are a total of 32 players who are actively involved in the insurtech space in Malaysia as of 2022, compared to only 16 players back in 2019. This shows that there is a growing market demand and potential for digital insurance products in Malaysia.
In the ever-evolving landscape of the insurance sector, the importance of digital transformation has become increasingly apparent, especially in light of the COVID-19 pandemic. As people were forced to adapt to a virtual way of life, insurance companies recognised the urgency of embracing digitisation.
Many insurance companies had already embarked on their digital transformation journey, but the pandemic highlighted the need for even faster progress, and the landscape was ripe for dedicated insurtech players to join incumbents in offering different, even unique digital insurance products in Malaysia.
Drawing parallels with fintech’s impact on banking, insurtech, the digitisation of insurance, is poised to revolutionise the insurance industry. By embracing digital technologies, insurance companies can unlock a multitude of advantages over traditional methods.
One of the primary benefits of insurtech lies in its ability to create unique and differentiated value propositions tailored to customer needs. Understanding and addressing customer requirements in a personalised manner enhances customer satisfaction and loyalty. This aspect sets digital insurtech apart from other traditional insurance players and even established digital companies operating in the industry.
Moreover, the focus on customer-centric solutions extends to improving the overall user experience. By leveraging digital tools and platforms, insurance companies can streamline their services, making them more accessible and convenient for customers. This enhancement in user experience fosters a deeper connection between insurers and policyholders.
Insurtech also opens up possibilities for reimagining and simplifying insurance sales, services, and operations models, by making use of next-generation technologies, such as AI-assisted underwriting, claims processing, and automated servicing.
Some of the digital insurance products that are being offered in Malaysia include:
On-demand digital insurance: These are insurance products that can be purchased and activated anytime, anywhere, and for any duration through a mobile app or website. Some examples are Tune Protect, which offers travel, motor, personal accident and gadget insurance, and PolicyStreet, which offers life, health, pet, car and business insurance.
Peer-to-peer (P2P) insurance: These are insurance products that are based on a social network of policyholders who pool their premiums and share their risks. Some international examples are Germany’s Friendsurance, which offers car, home and liability insurance, and Canada’s Besure, which offers health, travel and gadget insurance. In Malaysia, TREVO Shield partnered Allianz General to launch car-sharing coverage for the P2P market.
Telematics insurance: These are insurance products that use data from sensors or devices to monitor the behavior or performance of the insured and adjust the premiums accordingly. Some examples are AXA FlexiDrive, which offers motor insurance based on driving habits, and Allianz Flight Care, which offers travel insurance based on flight delays or cancellations.
Microinsurance: These are insurance products that provide low-cost coverage for low-income or underserved segments of the population. Some examples are Axiata Digital, which offers life, health and personal accident insurance through mobile platforms, and GKash, which offers health and personal accident insurance through e-wallets.
These are but a sampling of what digital insurance products can offer protection for in Malaysia. Here are some of the standalone digital insurance products from both insurtechs and incumbents that can be purchased in Malaysia, that differ from run-of-the-mill life, health, and property coverage.
Axiata Digital offers various digital solutions in the areas of digital financial services, which surprisingly includes microinsurance and takaful plans offered by both Boost, Axiata Digital’s e-wallet, and by Aspirasi, its digital financing platform.
Boost Protect provides affordable and premium coverage for various lifestyle needs, such as personal accident, hospitalisation, critical illness, bill protection, and card protection. Aspirasi Protect provides protection for customers who take up financing or e-commerce transactions via Aspirasi or its partner platforms such as Celcom and Boost. It covers accidental death, permanent disablement, medical expenses, funeral expenses, and bereavement allowance.
Even more unique is ADA Protect, a product that offers life insurance coverage for customers who sign up for Axiata Digital’s digital marketing platform, ADA (Analytics. Data. Advertising). ADA Protect provides a lump sum payment upon death or total and permanent disability of the insured person.
bolttech operates as a global B2B2C insurtech that leverages its insurance exchange to connect insurers with distributors and their customers. It has licenses to operate in more than 30 markets throughout Asia and Europe and all 50 US states.
In Malaysia, bolttech has partnered with digital lifestyle insurer Tune Protect Group to offer device protection solutions. The device insurance coverage is underwritten by Tune Protect Malaysia, providing protection for cracked screens, accidental and liquid damage, as well as extended warranty for insured devices, such as smartphones and now also home appliances with AEON SAFEGUARD — the partnership with retail chain AEON combines device insurance and support services for mobile devices and home appliances purchased at all 35 AEON stores nationwide.
bolttech is the appointed corporate agent and the provider of the device support services for AEON SAFEGUARD including device trade-in service for used smartphones and tablets, 24/7 technical support service for usage issues, ‘new-in-the-market’ repair concierge service, and door-to-door device pick-up and delivery service.
An approved participant in the Bank Negara Malaysia Regulatory Sandbox, Fi Life is a direct-to-consumer online life insurance service that offers simple, easy-to-understand and inexpensive life insurance products in Malaysia. Besides the usuals like term life, critical illness, and accidental death, Fi Life also claims to offer the cheapest life insurance for women in Malaysia.
With Sandbox participants directed to create inclusive policies for marginalised and underinsured groups, Fi Life said that any woman below the age of 55 will have access to the lowest life insurance premium in Malaysia or get the difference refunded.
The insurtech added that it is also offering the highest sum assured of RM1 million among all life insurance policies offered digitally. All policies issued by Fi Life are reinsured by Hannover Re Malaysia, the local branch of the third-largest reinsurance company in the world. With the approval to participate in BNM’s Sandbox, Fi Life is able to roll out its own insurance products online.
Touch ‘n Go Group has recently via TNG Digital launched GOprotect, a one-stop insurance hub where its users can purchase various types of insurance offerings through the Touch ‘n Go eWallet app. GOprotect currently features six insurance products, namely, WalletSafe, SafeTrip, SafeHome, CarInsure, CI Insure, and MotoInsure to cover various customers’ needs.
Users can purchase an insurance plan in less than 3 minutes after comparing quotes from leading insurance partners such as AIA Malaysia, Allianz, Etiqa, MSIG, Takaful Ikhlas, Takaful Malaysia, and Zurich Takaful. Users can also enjoy low premiums starting from RM1 for some of the plans and a hassle-free claims process, filing claims online or via a mobile app, with fast approval and settlement.
Users can keep track of their microinsurance policies in an organised manner through the “My Policies” tab on their eWallet app, with some assurance that their transactions are protected and secure from cyber risks.
Oyen was founded in 2021 and is a leading digital-first pet healthcare insurance platform, that provides pet insurance protection alongside more pedestrian general insurance and travel insurance. Two years after its inception Oyen has achieved a milestone of RM100 million worth of protection for pet owners in Malaysia.
Oyen’s pet insurance covers up to RM8,000 per year for veterinary medical bills and can be used at a growing network of of veterinary clinic partners in Malaysia. Along with managing the medical expenses of their pets, Oyen this year introduced travel insurance for their owners that covers up to RM300,000 for medical expenses and up to RM1,000,000 for personal accident.
What’s more, the policy also offers additional pet benefits during their trip, such as trip curtailment, where the Oyen travel insurance policy will pay for the unused portion of their trip (up to RM50,000) should the pet get severely ill or pass away prematurely, and require a return home early. And if travel delay should hold pet owners up, this same policy will pay for pet boarding extension of up to RM1,000.
PolicyStreet is a regional full-stack insurtech group that provides digital insurance solutions to businesses and consumers in Southeast Asia, and in 2023 expanded into Australia. It works directly with over 40 life, general, and takaful providers globally to offer a comprehensive range of products and services.
Some of its digital insurance products include Menu Rahmah Car Insurance, a car insurance that offers free digital road tax, RM15 off for your car insurance, and flexible coverage options. Recently PolicyStreet tied up with used car platform CARSOME to offer CARSOME Care+, complimentary coverage is valid for every purchase of a CARSOME Certified car for a year, including covering car loan payments of up to RM1,000 per month for a maximum of six months.
PolicyStreet has also extended protection for gig economy participants, shielding delivery riders with personal accident insurance that covers accidental death, permanent disablement, medical expenses, and funeral expenses for road accidents.
Senang Insurance is a Malaysian insurtech company that offers on-demand, subscription-based insurance products for businesses and consumers. It operates as a digital insurance platform that allows users to get one-off coverage and insure only what they need, on-demand at the time that they need it only.
Along with some expected policies like business and personal accident insurance, Senang also offers intriguing on-demand products like on-demand cleaning and e-commerce delivery insurance, pools that cover accidental damage or loss to customers’ property caused by cleaning service providers, or damage to goods or parcels during delivery by courier service providers, respectively.
There is also a handy Miscellaneous Insurance, which insures against various types of assorted risks, including but not limited to event cancellation, damage or loss to sports equipment or musical instruments.
Tune Protect is a licensed insurer that has a geographically diverse presence in Malaysia, with 16 branches nationwide. It offers a wide range of personal and commercial insurance products, both online and offline. Some of its digital insurance products are Sports+, a personal accident insurance for sports enthusiasts that covers accidental death, permanent disablement, medical expenses, and funeral expenses for various sports activities, such as hiking, cycling, golfing, and more.
Besides targeting the youth segment with its mobile-first strategy and user-friendly website, Tune Protect has branched into insurance for small and medium enterprises (SMEs). The first offering is online employee health and life insurance by Tune Protect Life, allowing employers the flexibility to purchase life or medical insurance or both, for their employees directly on a business-to-consumer (B2C) channel.
The second is an SME microsite that is a one-stop platform for micro SMEs to obtain business insurance solutions that are tailored to their needs, along with offering profession-based insurance bundles such as Business Shield with a 15% platform-exclusive premium rebates, and connecting them with partners’ offerings.