These answers are attributed to insureKU’s Co-Founder and Chief Executive Officer, Shadhana Sekaran.
Market Penetration and Competition
1. How would you describe the current state of the insurance industry in Malaysia? What are the key trends and challenges shaping the market today?
The year 2020 reshaped the global economy, impacting every sector, including insurance. As insurance is fundamentally about safeguarding against unexpected risks, it's poised for significant transformation post-pandemic. The COVID-19 outbreak profoundly altered consumer behaviours, needs, and expectations, prompting insurance companies to rapidly adapt. Overnight, businesses transitioned to digital platforms and virtual operations to navigate the lockdown.
A substantial shift is anticipated in how insurance companies engage with consumers—not only in selling products and services but also in delivering a seamless experience throughout the policy lifecycle, from purchase to claims processing. While still in early stages, these changes are already redefining the insurance landscape.
2. Can you elaborate on how tech is transforming the insurance sector in Malaysia? What specific technologies or innovations are having the most significant impact?
One of the most significant changes is the move towards digital platforms. Insurers and reinsurers are increasingly conducting business over the internet, a trend that is rapidly gaining importance because this allows insurance companies to reach a broader audience while enhancing accessibility for customers. This shift has also paved the way for insurtech startups, which are driving innovation and intensifying competition within the sector.
These startups are introducing a range of new solutions, including digital platforms for policy management, AI-powered risk assessment tools, and customer-centric applications that improve the purchasing experience. For example, platforms that aggregate and compare insurance products streamline the decision-making process for consumers, while digital claims processing systems accelerate claims handling and reduce turnaround times.
3. Given the increasing number of insurtech startups and established players in the market, how does InsureKU plan to differentiate itself and gain a significant market share?
Firstly, InsureKU is Malaysia’s first true end-to-end digital insurance and takaful aggregation platform, proudly developed by Censof Maal, a subsidiary of Censof Holdings Bhd, a leading Malaysian financial solutions provider. Our launch is introducing a groundbreaking platform that enables consumers to seamlessly compare a wide range of insurance products from multiple providers, all in one secluded website.
Unlike traditional platforms, insureKU focuses on accessibility and transparency, making insurance products easier to understand and access for consumers across all levels of society.
Through advanced technology and strategic partnerships with leading insurance providers, insureKU offers a user-friendly interface where customers can easily compare quotes, purchase policies, and even process claims, all in a straightforward manner.
Putting customers first in mind – Every decision we make is centred around the customer experience, ensuring transparency and simplicity at every step of the journey. From our platform design to the products we offer, we approach everything from the buyer's perspective. We eliminate jargon, prioritise clarity, and focus on meeting the needs of our customers.
Furthermore, InsureKU is among the first applicants approved by Bank Negara Malaysia's (BNM) Financial Technology Regulatory Sandbox, setting a new standard in financial planning for the future.
We also include some innovative features like the Need Analysis Calculator - a tool helps users identify their unique insurance requirements based on their individual circumstances and goals as well as Financial Budget Calculator to assist consumers in planning and managing their finances effectively, ensuring that their insurance decisions are well-aligned with their financial objectives.
By addressing common pain points and leveraging advanced technology, InsureKU will redefine how Malaysians approach insurance and takaful, making it more accessible, transparent, and tailored to their needs.
4. What is InsureKU's target market? Are you focusing on a specific demographic or niche within the insurance industry?
The digital transformation of the insurance sector is poised to significantly benefit both finance and insurance industries by providing easier access to policies and comprehensive information about available products.
We expect younger consumers, particularly millennials aged 25-34, to drive this shift towards online platforms due to their preference for convenience and simplicity. Our focus is on first catering to tech-savvy and digitally inclined individuals who prioritise ease of use and transparency, and then expand our focus. This includes both younger users who are adept with digital tools and those new to insurance who might find traditional methods overwhelming and confusing. By offering efficient, self-service solutions, we aim to attract and educate these consumers, making the insurance process more accessible and user-friendly for all.
5. What steps is InsureKU taking to enhance accessibility in the insurance industry? How are digital platforms and tools improving access to insurance products for a broader audience?
Through our comprehensive digital platform, we aim to break down barriers to entry, simplify the decision-making process, and ultimately enhance financial resilience among Malaysian consumers.
Moreover, our extensive industry exposure has afforded us insight into the prevailing financial climate, where individuals acknowledge the importance of insurance but are hindered by apprehension and information overload when making lifelong decisions. This hesitancy stems from a real fear, underscoring the necessity for a solution that simplifies and demystifies the insurance journey, alleviating concerns and empowering individuals to make informed choices confidently.
Our core values are centred around transparency, fairness, empowerment, education, customer-centricity, innovation, and ethics. We are committed to fostering open and honest interactions between insurance companies and consumers.
The digital nature of InsureKU's platform aligns with these values by enabling users to access insurance services from anywhere with an internet connection. This removes geographical and time constraints that may have previously limited access to insurance products, making it easier for a broader audience to engage with the platform at their convenience. Furthermore, our platform centralises various insurance options in one location, simplifying the process for consumers. This consolidation allows users to compare and select insurance products effortlessly, without the need to navigate multiple websites or interact with numerous providers.
6. How do you see the role of insurance agents evolving in the digital age? Will InsureKU be utilising agents as part of its distribution strategy?
As an Insurance and Takaful aggregation and recommendation platform, our aim is to provide consumers with a broader range of options in the market. We believe that by offering a comprehensive selection of insurance and takaful products, we can empower consumers to make informed decisions about their coverage needs.
Ultimately, we view our platform as a catalyst for innovation and collaboration within the insurance industry, driving greater choice and accessibility for consumers
While we acknowledge the important role that insurance agents continue to play in the industry, InsureKU's focus is on leveraging technology to modernise the insurance purchasing experience. We view our model as part of the broader industry landscape, offering an alternative that caters to those who prefer a more direct and efficient approach to managing their insurance needs.
Business Model and Revenue Generation
7. Can you elaborate on InsureKU's revenue model? How does the company generate income from its platform?
At InsureKU, our revenue model is crafted to support our mission of delivering a streamlined and user-centric insurance experience. While specific financial details remain confidential, I can reveal that we operate on a referral fee basis for each successful transaction, with full transparency available on our website.
8. What is the company's strategy for onboarding new insurance providers to the platform? What criteria do you use to select partners?
Our strategy is grounded in two main principles that are pivotal for successful partnerships.
First, we emphasise technical compatibility. It is essential that potential providers are technologically advanced and able to seamlessly integrate with our platform. This means their systems must support efficient quote generation and facilitate smooth transactions from start to finish. By ensuring that our partners are tech-ready, we can maintain a streamlined process that enhances user satisfaction and operational efficiency.
Second, we focus on the simplicity of the application process. Our goal is to offer a user-friendly experience, and this starts with the ease of applying for insurance products. We seek partners who have developed straightforward and efficient application processes. This not only speeds up the purchasing journey but also reduces friction for our users, making the overall experience more accessible and enjoyable.
9. How do you ensure data privacy and security for both customers and insurance providers on the InsureKU platform?
insureKU strictly follows the cybersecurity policy of the nation in a bid to safeguard vital client data against threats such as hacking, intrusion, fraud and denial of service.
We are also committed to adhering to BNM’s guidelines on Internet Insurance (Internet Insurance Guidelines) which governs Internet insurance activities specifically and the Guidelines on on Management of IT Environment (GPIS 1) (IT Environment Guidelines) which sets out the minimum responsibilities and requirements for planning and managing, as well as establishing preventive and detective measures to mitigate the risks pertaining to IT environment.
In addition to adhering to these comprehensive guidelines, we have taken significant steps to bolster the security of our platform by implementing HTTPS encryption across our website. HTTPS, which stands for HyperText Transfer Protocol Secure, is an advanced security protocol that encrypts the data transmitted between our users' devices and our servers. This encryption process ensures that all information exchanged is protected from potential interception or tampering.
The HTTPS protocol works by using Secure Sockets Layer (SSL) or Transport Layer Security (TLS) certificates, which establish a secure, encrypted connection between our website and the users’ browsers. This means that any data—whether it’s personal details, financial transactions, or sensitive insurance information—that flows through our site is shielded from unauthorised access or eavesdropping.
Customer Acquisition and Retention
10. What marketing strategies is InsureKU employing to acquire new customers? How do you plan to build brand awareness and loyalty?
The compounded impact of unanticipated economic disruptions from the COVID-19 pandemic have amplified the need for financial protection among uninsured and underinsured communities, as well as small businesses that are highly vulnerable to external shocks. This market is both large and underserved, with many people and businesses struggling to access or afford proper insurance.
This situation underscores the importance of reassessing insurance and its role in promoting financial inclusion. To achieve this, we’re leveraging digital platforms like Facebook, Instagram, and LinkedIn to drive our content marketing efforts. Our strategy focuses on educating the community with engaging and easy-to-understand content, making insurance a more approachable and less intimidating topic.
Looking ahead, as we prepare for our full platform launch, we plan to expand our efforts with interactive events and additional engagement activities. These initiatives will further our goal of raising awareness, educating the public, and ultimately improving insurance penetration and financial security across the country.
11. Customer satisfaction is crucial in the insurance industry. How will InsureKU measure customer satisfaction and address complaints or issues?
To ensure that our customers are heard, our customer service team will be accessible through various channels, including social media, our website, and WhatsApp, ensuring you can reach us in the manner that suits you best.
We adhere to a structured process for managing and resolving complaints. Issues reported during working hours are addressed promptly, while those received after hours are handled on the next business day. Our team will also escalate matters to the relevant insurer to ensure swift and effective resolutions. This thorough approach enables us to maintain high standards of customer satisfaction and address any concerns efficiently.
12. With the increasing emphasis on personalisation, how is InsureKU utilising data to tailor insurance products and services to individual customer needs?
Personalisation is at the heart of our approach to delivering exceptional insurance products and services. To achieve this, we leverage advanced data analytics and artificial intelligence (AI) to tailor our offerings to each individual customer’s unique needs.
We begin by collecting and analysing a range of data points from user interactions on our platform. This includes information about their insurance preferences, risk profiles, and personal circumstances. By processing this data, our AI algorithms can generate insights that help us understand each customer’s specific needs and preferences.
Additionally, our Need Analysis Calculator and Financial Budget Calculator are designed to further refine these recommendations. The Need Analysis Calculator assesses users’ insurance needs based on their life situation and financial goals, while the Financial Budget Calculator helps them manage their insurance expenses in line with their overall financial plan.
With this understanding, we offer personalised recommendations and product suggestions that align closely with individual requirements.
13. How have advancements in technology and innovation influenced customer experience in the insurance industry? What measures are being taken to ensure a better and more personalised experience for customers?
Advancements in technology and innovation are significantly transforming the insurance industry, reshaping how insurers interact with policyholders and deliver services. Over the past four years, the industry has increasingly embraced digital tools and platforms, marking a shift towards more streamlined and personalised interactions. This evolution has been driven by the adoption of websites and mobile applications, which allow policyholders to check insurance details, monitor policy statuses, and submit inquiries directly. These digital platforms have improved accessibility, facilitating seamless communication between insurers and their customers and enabling quicker responses and more efficient service.
In addition to digital platforms, other technological advancements are further revolutionising the insurance landscape. Artificial Intelligence (AI) is at the forefront of this transformation, enabling insurers to leverage data-driven insights for more accurate risk assessment and personalised policy recommendations. AI-powered chatbots and virtual assistants are enhancing customer service by providing instant, 24/7 support and handling routine queries. Machine learning algorithms are optimising claims processing and fraud detection, leading to faster and more reliable outcomes.
As Malaysia advances towards digitalisation, these technological innovations present both opportunities and challenges for the insurance industry. Malaysian insurance providers can stay competitive, meet evolving customer expectations, and navigate the rapidly changing landscape of global insurance. However, this transition also requires addressing regulatory concerns, ensuring data security, and managing the digital divide to fully leverage its benefits.
Future Outlook and Challenges
14. How do you envision the future of insurance in Malaysia? What role will InsureKU play in shaping the industry?
We are revolutionising the insurance sector in Malaysia with an online aggregation model, simplifying the process of obtaining quotes and managing claims for life, general insurance, and takaful in a clear and user-friendly manner, influencing positive consumer behaviours.
insureKU’s approach to online insurance aggregation exemplifies the power of customer education and technology in simplifying complex financial decisions.
By pairing innovation with an ecosystem that focuses on customer satisfaction, InsureKu is empowering individuals to better take charge of their financial journey.
15. What are InsureKU's expansion plans? Are there any plans to enter new markets or offer additional financial services?
We strive to digitise the entire insurance utility, from pre-purchase education, effective comparisons, easy applications, and smooth claims processes.
We are now focusing on building a financially resilient Malaysian consumer ecosystem.
With the implementation of machine learning and AI, we aim to revolutionise the procurement of insurance, may it be for personal or corporate purposes. By being better fitted with educational tools and technological components, InsureKU hopes to enable users to take a more active role in their insurance while assisting in streamlining the claims process throughout the industry.
As we prepare to launch, the website will be available in multiple languages (English, Chinese,Bahasa Malaysia & Tamil) and in 2025 onwards, we look forward to launching an accompanying mobile app.
