U for Life is 60%-owned by the world's third-largest reinsurance company Hannover Re and 40% by New Zealand-based Intelligent Life Ltd. Intelligent Life specialises in designing and deploying distribution systems for the life insurance industry featuring electronic underwriting and straight-through-processing. Using this platform, a fully underwritten life insurance policy can be quoted, underwritten, paid for and issued online in 10 minutes.
Policies offered by U for Life is underwritten by Tokio Marine Life Insurance Malaysia Bhd, a member of the Tokio Marine Holdings, Inc in Japan.
He said there is a clear protection gap in Malaysia where the average protection is RM500,000 to RM700,000 and the average sum insured is RM34,000. "We want to increase the number of Malaysians who have life insurance from 56-75% to support what the government wants to do (by 2020) and that's the key element of the (U for Life) stakeholders."
He said the concept of U for Life is to make the product as affordable as possible by keeping it to its necessity, which is the protection element. "Sometimes a life insurance product comes with different elements like investment and protection so when you have all these components coming together, the price becomes higher. If we strip it down to just protection, it becomes more affordable."
U for Life was first introduced in May and the company is still looking at the initial results. It will also look into customers' feedback to determine how things will pan out, such as products that customers require and the suitability of the online platform.
"There's also definitely a possibility for us to expand into other insurance products," said Iskandar.
U for Life offers life insurance protection of RM100,000 for only RM9.85 per month, banking on simplicity, instant and affordability.
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