Friday, April 28, 2017

Life Insurance Sales Goes Digital

U for Life and PolicyStreet in MalaysiaA new collaboration between online insurance company U for Life and emerging insurtech player PolicyStreet wants to boost the digital media movement in the Malaysian insurance industry.  The new partnership also hopes to encourage younger generation to take life insurance more seriously. 
The general public, the youths in particular, continue to see owning a life insurance policy as one of the lower priorities in life, said Thing.  "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."

Only 55 percent 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."

A digital society is fast emerging and ever-evolving. The need for various companies to move towards the online space is building up, and buying insurance is one of those fast moving trends. Also, we are supporting of the Malaysian government's drive to embrace the digital economy with our move. This will also help close the protection gap."

Synergy between traditional and digital  - " Taking note of the need for a more flexible and customer-centric infrastructure, U for Life and PolicyStreet [which is held by insurance technology company Polisea] has 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," said Thing.

Commenting further on the partnership, PolicyStreet chief executive officer 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."

This new path to better awareness, education and knowledge, insurtech players will hope to help consumers make more informed decisions about their protection needs.  This should help bridge the country's protection gap and meet the envisioned 75 percent insurance penetration rate by 2020.

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