NTUC Income has made its first overseas foray into Indonesia, Malaysia and Vietnam. The composite insurer has partnered with PT Central Asia Financial (JAGADIRI) in Indonesia, Post & Telecommunication Joint Stock Insurance Corporation (PTI) in Vietnam and VSure Tech Sdn (VSure) in Malaysia. Income’s Insurance-as-a-Service (IaaS) model enables the company to bring digital-first insurance business models to partners overseas. This enhances their speed-to-market and equip them with the right capabilities and tools to capture new customer segments and revenue streams.
70 million people in Southeast Asia have become digital consumers since the start of Covid-19 pandemic. Almost 80% of the population in SEA is projected to become digital consumers by the end of this year. The market size for digital insurance is projected to reach US$7.6 billion by 2025. The acceleration of digital consumption is showing no signs of abating. Nine in 10 new digital consumers intend to continue using digital services in the future.
Since the inception of the Digital Transformation Office (DTO) more than four years ago, Income has been innovating and rolling out new insurance business models such as micro-insurance (SNACK), subscription insurance (TRIBE) and usage-based insurance (Milesurance, Gigsurance and Freightsurance). These bring to market a new way of engaging with and consuming insurance that is embedded in customers’ lifestyles. A shift in conventional insurance mindset and appetite for unprecedented risks.
JAGDIRI, PTI and VSure will be the first in their respective countries to launch Droplet respectively across four cities including Greater Jakarta, Hanoi and Ho Chi Minh City, as well as Kuala Lumpur. Droplet is a first-of-its-kind micro-insurance product that addresses price surges on ride-hailing platforms during rainy days.
The total value of the ride-hailing market in SEA is projected to increase by almost four times to US$42 billion by 2025. Hence, “Rainsurance” like Droplet is needed to protect consumers financially against price surges on these platforms This is especially so during the monsoon season.