Yesterday AIG made a leap that no other insurance organisation in Malaysia have never taken before. They went online. Wait a minute, that did not sound right. They have always been online; in the sense that they have always been working. They have not been available for purchase anywhere on the online platforms though. Like any other insurances, their insurances were only available through certain channels and agents. Those things create a problem though; inconsistent pricing.
AIG Malaysia’s solution; put themselves on Malaysia’s favourite online marketplace, Lazada. It makes plenty of sense if you think about it. There are certain insurances that you do not need an agent to sign up for. In some cases, it is way cheaper to get the insurance directly from the providers themselves. But of course this requires a certain level of awareness and knowledge regarding existing insurance policies. The problem in Malaysia is exactly this though. Recent studies show that less than 2% of Malaysia’s GDP share are insurance premiums. In developed markets, these numbers go as high as 4%. Obviously then there is a gap to be fulfilled and AIG steps right into it.
Through this collaboration AIG will have its own landing site via Lazada Malaysia to make purchases of various insurance plans. For now, AIG offers Travel, Snatch Theft and Personal Accident (Active Lifestyle Care) plans to Lazada’s Malaysian customers (yes, these insurances cover Malaysians and Permanent Residents only for now). Prices range from MYR8 to MYR115 from case to case basis. Obviously you would still have to provide all your personal data just as you have to with any other insurance coverage. But prices are already fixed for each scenario and coverage plan so you are free from those ‘agent fees’ or ‘agency fees’ (not saying that it is a common practice, it could be). But at the same time these insurance plans are usually less complex than its health, and life plans so you would not require an agent to get things done anyway. You are still entitled to claims up to MYR200,000 (case to case basis, and check your plans; they did not give a specific number at this time) though. In that case a premium of MYR115 is not exactly expensive.
According to AIG Lazada is the perfect platform for their products as these plans are aimed towards mostly customers aged between 26-35 years old. Lazada Malaysia on the other hand says that the addition of AIG into its ever-expanding product offerings improves transparency. It also helps its customer base to be better informed about insurances and finding the right coverage for their needs. It is also in a way saying that Lazada recognises that Malaysians actually need to be more aware about insurance coverage and aims to getting these coverage to its customers with no frills.
AIG Malaysia is the first of many insurers in Malaysia that took this step to get their products online for better transparency and greater accessibility. Of course you can expect more insurers to take similar steps. AIG will not be sitting still though, they do have plans to expand their online footprint in increasing the amount of product they may offer on Malaysia’s largest online marketplace. For now though you can purchase Travel, Snatch Thief, and Active Lifestyle Care plans from AIG via Lazada. For more information and to purchase these AIG coverage do head down to their Lazada Malaysia landing page here. Press release after the break.
LAZADA MALAYSIA PARTNERS WITH AIG MALAYSIA TO BE THE FIRST TO LAUNCH AFFORDABLE INSURANCE ONLINE
Collaboration introduces first ever insurance sub-category on e-commerce in Southeast Asia; marks a step closer in creating greater insurance awareness for Malaysians
KUALA LUMPUR, August 22 2017 – Leading e-commerce platform, Lazada Malaysia, today announced a partnership with AIG Malaysia, subsidiary of American International Group, Inc (NYSE:AIG), to provide a more convenient, accessible, and seamless purchase of insurance for Malaysians on its platform.
Customers who shop on Lazada Malaysia are now able to shop from the ‘freestanding’ AIG shop-front to easily purchase Travel, Snatch Theft and Personal Accident (Active Lifestyle Care) coverage. These premiums will be priced between RM8 to RM115.
Malaysia’s general insurance penetration level, measured in terms of premiums as a share of GDP, stands at less than 2 per cent as compared to 3-4 per cent in more developed markets. Recognising that the population remains largely uninsured, the partnership seeks to continue expanding the reach and penetration of insurance in the country, further generating more awareness among consumers.
“Enabling opportunities in the digital and direct channels for the purchase of insurance will be able to improve transparency and enable easier product comparisons, further ensuring that our customers are well-informed about the right products that suit their needs. We continuously invest to provide services that create a more engaging customer experience, and ultimately, better serve the needs of Malaysians. This collaboration is timely and helps prepare Malaysians to take a better charge of their future,” said Hans-Peter Ressel, Chief Executive Officer of Lazada Malaysia.
According to Antony Lee, AIG Malaysia’s Chief Executive Officer, the partnership is another milestone for AIG Malaysia to reach out to a very underinsured segment of the market that favours the convenience of purchasing on digital platforms. AIG will offer popular insurance products specifically tailored for this market at competitive premium prices.
“Lazada not only presents a compelling retail presence, but also offers a strong online platform that enables AIG Malaysia to offer the relevant products to the right customers at the right time, and for the right reasons. With some 50 per cent of Lazada’s customers aged between 26 and 35 years – well within AIG’s target customer segments – the partnership will provide us with the opportunity to better understand our customers’ needs and to continuously match them with the right insurance solutions.”
To visit AIG’s official store on Lazada, please visit http://www.lazada.com.my/aig-malaysia-insurance/
Source: Lazada Malaysia