KUALA LUMPUR: Tune Protect Group, through its wholly owned subsidiaries Tune Protect Life (TPL) and Tune Protect Malaysia (TPM), today launched insurance digital solutions to bridge the protection gap and make insurance more accessible to SMEs and MSMEs in Malaysia.
The innovative digital solutions are an employee health and life insurance offering by TPL and a one-stop microsite offering customised business insurance by TPM.
Small and medium enterprises and micro SMEs make up 99% of total businesses in Malaysia's economy but the current insurance coverage for these sectors is low. Employee benefits play a crucial role in enhancing staff well-being, retention, and productivity while businesses face the risk of significant losses due to natural disasters. In addition, the medical inflation rate in Malaysia was 12% in 2022, which is six times higher than the annual general inflation rate and is expected to increase to 15% this year.
At a press conference in conjunction with the launch, Tune Protect CEO Rohit Nambiar said the digital insurer wants to make insurance more accessible to SMEs and MSMEs.
“It is unfortunate to see that despite being a vital part of the economy, contributing 37.4% to GDP (gross domestic product) in 2021, SMEs remain largely uninsured or underinsured. This protection gap exposes them to significant risks and vulnerabilities. Hence why, we as a digital insurer, are taking proactive steps to address the insurance needs of MSME, leveraging our digital-first approach.
“Everyone deserves to be protected. We believe that by making insurance accessible, affordable, and convenient, we can support the growth and resilience of the MSME community, contributing to a stronger and more secure economy,“ he said.
TPL launched a first-in-market employee insurance solution which offers business owners or employers the flexibility to purchase life or medical/health insurance, or both, for their employees directly on a business-to-consumer channel. This offering has a unique value proposition of three years’ fixed premium guarantee, which means business owners pay the same amount annually during the period.
Incorporated with the solution is a health/wellness-based rewards programme called Activ8, which aims to improve employees’ health, well-being and productivity through annual health screening and digital coaching programmes. Business owners are able to purchase the SME EZY product and plan of their choice directly, with rebate of up to 10%.
“At Tune Protect Life, we focus on the unserved and underserved segment, and we understand the pain points faced by these communities, SMEs included. Affordability is a key concern for business owners, what with the rising and uncertain medical costs year-on-year, making it challenging for SMEs to provide adequate insurance for their people,“ said TPL’s principal officer, Koot Chiew Ling.
TPM introduced the user-friendly home-grown SME Microsite, a one-stop platform for business owners and small businesses to obtain customised insurance solutions. The microsite offers easy access to information, enabling MSMEs to make informed decisions about their coverage needs. It also provides a marketplace for MSMEs, offering profession-based insurance bundles such as Business Shield with a 15% platform-exclusive premium rebates and connecting them with partners' offerings.
“Complexity, affordability, and lack of customisation have been significant challenges for MSME business owners when obtaining insurance. Through our one-stop microsite solution, we aim to address these challenges head-on. By providing customizable insurance solutions and simplifying the process of managing risk, we not only aim to enhance the customer experience but also to provide our MSME community a platform to collaborate with one anothe,” said TPM’s CEO, Jubin Mehta.