Malaysia-based insurtech PolicyStreet has received Financial Adviser Approval from the central bank, Bank Negara Malaysia.
Under the approval, PolicyStreet can now conduct financial advisory and Islamic financial advisory business.
Furthermore, it can source, aggregate, compare, customise and advice on insurance products. It can now work directly with all 47 life and general insurance providers in Malaysia. This avoids the bias that agents who can only works with particular insurance providers have.
The Malaysian insurtech can analyse various products and provide advisory services based on customers’ needs and goals.
PolicyStreet is also embarking on a a new fusion business model that utilises technology to bridge the old and new economy. For this, it employs a hybrid O2O (offline to online) operating model to communicate insurance complexity and provide reassurances.
PolicyStreet’s CEO Lee Yen Ming, said: “We initially wanted to apply for the Sandbox to trial aggregation of insurance products but decided to go for the full FA approval instead when we discovered that we fulfil all requirements.
“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. 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.”
According to PolicyStreet, it has underwritten over MYR400m ($100m) and sold more than 10,000 policies in the two years since it began operations. Additionally, it raised $500,000 in seed funding from KK Fund.