Malaysian insurtech startup PolicyStreet today announced that it has secured an approval from the country’s central bank Bank Negara Malaysia (BNM) to conduct general and Islamic financial advisory (FA) business.
With the approval, the company can now source, aggregate, compare, customise and finally advise individual consumers and businesses of the best insurance products for their needs.
It is also able to work directly with all 47 life and general insurance and takaful providers in Malaysia.
In a press statement, PolicyStreet CEO Lee Yen Ming explained that the company initially wanted to apply for a sandbox programme, to trial the aggregation of insurance products. But it later discovered that it has fulfilled all the requirements for a full FA approval.
“With this approval, we are not bound by restrictions to advise customers on which insurance products to obtain based on their circumstances. We often find that insurance providers tend to have many competing products that cater to different segments of customers. For example, Insurer A might offer a life product suited for customers above 40 years old and insurer B on the other hand offers a more compelling life product for the younger customers aged below 30 years old,” Lee wrote.
“Aggregation will not enable us to advise the right products to different target customers but FA will. We want to advise customers without prejudice and we will marry technology and innovation to remove ‘fats’ in the ecosystem by driving transparency and simplicity in insurance,” the CEO stressed.
In two years of its operations, PolicyStreet said that it has underwritten over MYR400 million (US$100 million) in sum assured and sold more than 10,000 policies.
It has raised US$500,000 in seed funding from KK Fund and was a recipient of a government grant from Cradle Fund.
With this approval, the company is joining the list of only 32 other Approved Financial Advisers in Malaysia.
Image Credit: PolicyStreet