KUALA LUMPUR – GX Bank Bhd (GXBank), Zurich General Insurance Malaysia Bhd and Zurich Life Insurance Malaysia Bhd have announced a 10-year partnership to develop digital insurance products, particularly to protect customers against scams and cybercrimes.
While products will be rolled out gradually, the first one – to be launched in the third quarter of the year – will offer protection against unauthorised transactions resulting from cybercrime and electronic scam messages, GXBank and Zurich Malaysia said in a statement today.
The need for this type of protection is pressing due to rising cybercrime rates which puts Malaysians at greater financial risks, they added.
The long-term partnership will also see GXBank, the country’s first digital bank, identify customer pain points. Meanwhile, Zurich Malaysia will develop digital insurance products to meet customers’ needs.
“Our partnership enables us to address safety pain points regarding digital banking and safeguard Malaysians against life and financial uncertainties,” said GXBank chief executive officer Pei-Si Lai.
“As a young digital bank, we are excited to partner with Zurich Malaysia which has a presence in 200 countries and is at the forefront of transforming insurance services.
“Together, we hope to fractionalise insurance and make it affordable for every Malaysian.”
The bancassurance partnership between the three entities will ensure the digital insurance products are simple, user-friendly and affordable.
Head of Zurich Malaysia and country CEO Junior Cho said affordability for customers is important as many weigh their need for insurance protection against their financial standing.
“Coupled with the lack of understanding of the need for insurance protection, these are the main reasons why the populace, especially the financially vulnerable, remain uninsured.
“This long-term partnership with GXBank enables us to be flexible and agile in co-creating relevant affordable insurance products,” said Cho.
Citing a 2023 survey by PwC, GXBank and Zurich Malaysia noted that 84% of the uninsured population in Malaysia are between the ages of 18 and 34, while 58% of adults in Malaysia do not have any life or takaful insurance.
“The situation is exacerbated by the rise of cybercrimes in the country. Online fraud cases have doubled over five years from 2019 to 2023, with losses in 2023 (January to November) estimated at a staggering RM1.3 billion,” GXBank and Zurich Malaysia said. – May 6, 2024