Insurance company Zurich Malaysia has forged a ten-year exclusive bancassurance partnership with digital lender GXBank.
The partnership’s primary objective is to co-create micro protection products tailored to the challenges faced by underserved communities in Malaysia.
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Zurich Malaysia’s subsidiaries Zurich General Insurance Malaysia and Zurich Life Insurance Malaysia are teaming up with GXBank, a joint venture between Grab Holdings, Singapore Telecommunications, and a group of other investors including Kuok Group.
Under the alliance, GXBank will leverage technology to identify customer pain points and collaborate with Zurich Malaysia to develop digital insurance solutions.
The first product from this partnership, anticipated for release in the third quarter of the year, will offer protection against the growing threat of cybercrime, including unauthorised transactions and scams.
Citing a 2023 survey by PwC, the insurer highlighted that 84% of the uninsured population in Malaysia are young adults aged between 18 and 34.
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By GlobalDataFurthermore, the urgency for such products is underscored by the rise in cybercrime in Malaysia, Zurich Malaysia said, adding that over the past five years, online fraud cases have doubled, with estimated losses from January to November 2023 reaching RM1.3bn (~$274m).
Zurich Malaysia country CEO Junior Cho said: “For many, the need for insurance protection is often weighed between the affordability and their financial standing. 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.”
GXBank CEO Pei-Si Lai said: “Our partnership enables us to address safety pain points regarding digital banking, and safeguard Malaysians against life and financial uncertainties. As a young digital bank, 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.”
Last month, Zurich North America appointed Kara Higginbotham as the head of professional liability and cyber for the US National Accounts unit.
