GXBank Berhad, Malaysia’s first digital bank, has announced a strategic 10-year bancassurance partnership with Zurich General Insurance Malaysia Berhad and Zurich Life Insurance Malaysia Berhad. This exclusive agreement seeks to revolutionize the insurance landscape by offering micro-protection products tailored to the needs of the underserved population.
The collaboration, outlined in a recent joint press announcement, aims to deliver digital insurance solutions that are simple, user-friendly, and affordable. GXBank intends to use advanced technology and data-driven insights to identify customer pain points, collaborating with Zurich Malaysia to develop innovative digital insurance products.
The first of these digital insurance offerings is expected to launch in the third quarter of 2024, focusing on protection against unauthorized transactions stemming from cybercrime, as well as losses resulting from electronic scam messages. The product targets individuals typically underserved by traditional insurance markets.
GXBank CEO Pei-Si Lai expressed enthusiasm about the partnership, stating, “Our partnership enables us to … safeguard Malaysians against life and financial uncertainties. We are excited to partner with Zurich Malaysia who has a presence in 200 countries and is at the forefront of transforming insurance services. Together, we hope to fractionalise insurance and make it affordable for every Malaysian.”
“For many, the need for insurance protection is often weighed between the affordability and their financial standing,” said Junior Cho, head and CEO of Zurich Malaysia. “Coupled with the lack of understanding of the need for insurance protection, these are the main reasons why the populace, especially the financially vulnerable, remain uninsured. This long-term partnership with GXBank enables us to be flexible and agile in how we can co-create relevant affordable insurance products. Together, we look forward to instilling confidence and empower Malaysians to take charge of their financial future, and support Malaysians in caring for what truly matters in their lives.”
Making insurance more accessible for Malaysians
A recent survey by PwC reveals that 84% of Malaysia’s uninsured population falls between the ages of 18 and 34. Moreover, 58% of adults in Malaysia do not have life insurance. This gap in coverage is coupled with a rise in cybercrimes, with online fraud cases doubling over the past five years from 2019 to 2023, leading to losses estimated at RM1.3 billion in 2023 alone.
The launch of the new digital insurance products in the third quarter of 2024 is a significant step toward making insurance more accessible, especially for those previously overlooked by traditional insurance models, according to the news release.