Loanstreet.com.my, which provides personal financial products and a comparison site, has launched its online insurance agency service to offer customers a fast and hassle-free way to purchase motorcycle insurance and renew road tax online.
The company said in a statement that it is collaborating with Zurich Malaysia to become nation’s first insurance agent to offer online purchase of motorcycle insurance.
This endeavour aims to address the alarmingly low rate of insurance coverage among motorcyclists in Malaysia. Vehicle registration data released by the Malaysia Automotive Association (MAA) show that the total number of vehicles on the road stood at more than 28m units as at 30 June 2017. Of this number, 45% were motorcycles, and it is estimated that a significant portion of these motorcyclists were uninsured.
According to a research paper published by IATSS Research in Malaysia in July 2012, Malaysia has the highest road fatality risk (per 100,000 population) among the countries in Southeast Asia, with more than 50% of the road accident fatalities involving motorcyclists. This study drew its analysis from data collected from the police, government authorities, as well as national and international research institutes. The analysis reveals that the majority is motorcycle riders (89%), aged between 16 and 20 years old (22.5%). Although fatal motorcyclist crashes mostly involve ‘passenger cars’ (28%), motorcyclists are responsible for 50% of the collisions either by crashing singly (25%) or with other motorcyclists (25%).
Mr Jared Lim, managing director of Loanstreet, expressed his reasons for launching the new online service, “We wanted to get the number of uninsured motorcyclists off the road by providing a quick and easy online insurance agency service, and we also wanted to offer a fast online car insurance agency service which can be completed via a smartphone in just five minutes.”
Finology, a Malaysian FinTech company, is the technology provider behind the service which has enabled seamless integration of backend technology systems to power end-to-end online insurance quotations and purchases. Finology has been engaged in InsurTech for more than two years now, enabling various insurers and agents to offer their products and services online. In the coming months, Loanstreet plans to provide aggregation services that compare insurance plans and rates to help customers make informed decisions when selecting insurance plans that best meet their needs.
The first insurer to get on board and offer motor insurance through Loanstreet is Zurich General Insurance Malaysia. Mr Junior Cho, Zurich Malaysia's senior vice president and head of market management for the general insurance and takaful segment, said, “At Zurich, we welcome innovative opportunities to help Malaysians stay protected on and off the road. We trust the Loanstreet insurance portal will pave the way for customers to obtain the protection that they and their loved ones deserve in a hassle-free and convenient way.”
Finology and Zurich aim to empower more insurance agents to move into the digital space.