U for Life Sdn Bhd – Malaysia’s first and largest online term life insurance provider – 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.