Tuesday, 25 June 2024

GXBank, Zurich Malaysia forge 10-year insurance partnership

5 min read

GXBank, Zurich General Insurance Malaysia and Zurich Life Insurance Malaysia, have jointly announced their 10-year exclusive bancassurance tripartite partnership to co-create micro protection products for underserved Malaysians.

Leveraging intuitive technology and data-driven insights, GXBank will identify customer pain points, and work with Zurich Malaysia to co-create innovative digital insurance products that are simple, user-friendly and affordable.

The first product, set to be introduced by GXBank and Zurich Malaysia in the third quarter of the year, aims to protect underserved individuals from unauthorised transactions resulting from cyber-crime, as well as transactions initiated by electronic scam messages.

Pei-Si Lai, CEO, GXBank, shared that the partnership with Zurich Malaysia aligns with the bank's commitment to provide customised banking solutions for the underserved Malaysians. “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.”

Echoing Pei-Si, Junior Cho, country CEO and head of Zurich Malaysia is equally excited for this first in Malaysia partnership with the country’s first digital bank. “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.

Insurance protection an unmet urgency

A 2023 survey by PwC reported a worrying 84% of the uninsured population are between 18 to 34 years old - Malaysians in their prime years of life. The statistics are alarming; 58% of adults in Malaysia do not have any life or takaful insurance.

The situation is exacerbated by the rising cyber-crimes in the country - online fraud cases have doubled over five years from 2019 to 2023, with losses in 2023 (January to November) estimated at a staggering MYR1.3 billion ($274.26 million).

The need for protection is more important than ever, especially with the increasingly volatile events in the world today. Through this partnership, both Pei-Si and Junior hope to bridge the gap and facilitate more affordable insurance products without imposing additional financial burden on already tight budgets.

Re-disseminated by The Asian Banker

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