The Singapore-based insurer is expanding into high-growth markets in the region, with partnerships in Malaysia, Indonesia and Vietnam.
NTUC Income has made its first overseas foray, with strategic partnerships with Indonesia's Jagadiri in Indonesia, Vietnam's PTI and Malaysia's VSure, the company announced on Thursday.
The partnerships, which are built on the company's insurance-as-a-service model, promises strategic local insurance partners new insurance business models and speed-to-market to capture digital-first consumers for growth, NTUC Income said.
The first product it will be rolling out in these markets is «Droplet» – a micro-insurance product that icovers price surges on ride-hailing platforms during rainy days.
Strong Demand
In the announcement, NTUC Income noted strong demand for digital consumption in the region, including digital financial services, with the market size for digital insurance projected to reach $7.6 billion by 2025, citing data from Google, Temasek and Bain.
It also noted the market potential of the the three countries, citing their relatively young populations and high mobile penetration rates.
«I believe that these markets are especially primed for new digital insurance propositions that are enabled by technology. The diversity of our regional partners is a testament to the value of our IaaS model and more significantly, signals that Income is well placed to work with any partner in Asia,» Andrew Yeo, Income CEO, said.
New Business Models
Income launched its Digital Transformation Office over four years ago, and since then has launched a number of new insurance business models such as micro-insurance (Snack), subscription insurance (Tribe) and usage-based insurance (Milesurance, Gigsurance and Freightsurance).
«These propositions bring to market a new way of engaging with, and consuming insurance that is embedded in customers’ lifestyles. This calls for a shift in conventional insurance mindset and appetite for unprecedented risks, alongside a new appreciation for data, insurtech and an iterative approach to product design and roll-out,» Income said.
