Image credit: Insurance Asia News
Tune Protect Group Bhd is looking to leverage the small and medium enterprise (SME) market with its offering of insurance programmes and products, said its group CEO Rohit Nambiar (picture).
Rohit noted small entrepreneurs and SMEs have suffered due to the economic turndown caused by the various Movement Control Orders (MCOs) since last year.
As a business solution, Rohit said Tune Protect is looking to introduce simplified products to cater the needs of small businesses, which will also be affordable.
“The pandemic and MCO have had a profound impact on the survival of the SMEs. Many SMEs are underinsured or totally have no insurance cover as they find insurance expensive.
“We discerned that those covered generally pay a very high premium for coverage that may not be relevant to their business. As for those that are not covered, they generally view insurance as being unaffordable and not offering much value,” Rohit said.
As a result, SMEs are exposed to unforeseen financial losses from events like fire, flood or burglary, and this is where Tune Protect could play a role.
“We view this as an opportunity for us to provide relevant products and propositions to this segment, which includes retail commercial businesses, strata title properties management, and manufacturers and service providers, as well as gig economy businesses and start-ups, in our preferred segments,” Rohit stated in an email.
According to the Department of Statistic Malaysia, over 90% of businesses in the country are classified as SME.
Based on the 2020 Randstad Workmonitor first-quarter survey, 56% of millennial respondents aged between 25 and 34 expressed an interest to leave their jobs to start their own business.
Rohit said this encourages Tune Protect to offer digital insurance solutions for the SMEs that are technology savvy.
Tune Protect is now exploring the potential to be the holistic one-stop SME insurance provider, he said, and offer simplified packaged products that can be self-purchased and cover the essential exposures for business players.
“We also want to create new opportunities for our SME customers, by equipping them with basic e-business know-how via collaboration with partners and providers.
“In this instance, we are currently working with RedBeat Academy Sdn Bhd to train and enable the SMEs to sell their products online,” he added.
To ease the onboarding processes, Rohit said the group will create an SME portal and mobile app for entrepreneurs to easily purchase Tune Protect products. The platforms will include features to submit claims with instant payout and view policies.
The app will offer easy payment or instalment options to ease the financial burden of paying a huge lump sum amount for coverage.
“We do see a positive future for the industry going forward as generally the awareness for insurance protection has improved.
“The economic stimulus, coupled with the national vaccination programme, is expected to revive SMEs and the economy at large, which in turn would benefit the insurance industry,” Rohit added.
Rohit said Tune Protect started offering protection to SMEs with its Business Shield policy since 2019.
“Business Shield is our first six-in-one comprehensive package that covers SME businesses against key risks such as fire, burglary, loss of money, fidelity guarantee, plate glass, signboard and signage and public liability, with the flexibility to add on other coverage options to suit their business needs,” he said.
Tune Protect, formerly Tune Ins Holdings Bhd, underwrites and reinsures non-life insurance products through its subsidiary companies.
The group is organised into five business segments; investment holding, funds managed through collective investment schemes, general reinsurance, life reinsurance and general insurance business.
Its subsidiaries include Tune Direct Ltd, which is engaged in investment holding and manager of an online distribution platform; Tune Insurance Malaysia Bhd which is engaged in general insurance business; and Tune Protect Re Ltd, which is engaged in general reinsurance business.
Rohit said the group has set a three-year aspiration of achieving a net written premium mix of 40% for health and travel, 40% for lifestyle (including motor), and 20% for SMEs and other lines by 2023.
Source: https://themalaysianreserve.com/2021/04/12/tune-protect-to-tap-into-sme-insurance-market-as-economy-recovers/