The insurance sector is ripe for the taking as the industry does see massive growth potential. With more than 40% of Malaysians still not having any coverage the underserved continue to be neglected, a concern raised by the government and Bank Negara.
But things are about to change for the industry, just like Fintech is changing banking InsureTech is about to change insurance. The sector is already facing headwinds from startups, some of which are offering convenience and affordability never before possible with traditional methods.
These opportunities could be the reason behind the latest acquisition by AEON Credit Service of 100 percent stake in Insurepro Sdn. Bhd. Insurepro, a private limited company incorporated in Malaysia is licensed by BNM, to offer Insurance and Takaful broking business with primary business focus to provide comprehensive insurance services to strategic and specialised industries in Malaysia, particularly in Sarawak.
The acquisition will allow AEON Credit to grow its insurance business for distribution of both commercial and personal insurance products, including life insurance products by leveraging on its retail network and shopping malls.
Currently, its overall income earned from the insurance is less than 5% but sees the venture as a huge potential to expand into, as demand for insurance products continue to rise. AEON Credit will transform the business into a Digital Insurtech company with the main strategy to sell the products direct to consumer via its strong loyalty base of more 3 million customers.