Tune Protect to target double-digit growth

The group is now moving into the digital space, with an investment worth RM25m to be included for the next 3 years

By LYDIA NATHAN / Pic By ISMAIL CHE RUS

Tune Protect Group Bhd is targeting a double-digit growth in its revenue this year based on the performance of its travel business, as it aims to be the country’s leading digital insurer.

CEO Razman Hafidz Abu Zarim said the group saw a growth of 5% in 2017 in its gross written premiums (GWP) for its insurance business.

He said the group is now moving into the digital space, with an investment worth RM25 million that will be pumped in for the next three years.

He said three main strategies that the group will embark on in 2018 include a brand facelift that will continue putting its travel insurance on the map with exceptional customer service.

“We want to target the younger, technology savvy generation, while broadening our reach in the travel business. We also want to embark on travel sites and enhance our dynamic pricing,” he told reporters after the group’s AGM in Kuala Lumpur last Friday.

He added that the dynamic pricing commenced last year, has already yielded some results with the four airline partners they currently have.

“We recently collaborated with our fourth airline partner, Cambodia Angkor Air. “The other three are AirAsia Bhd, Cebu Pacific Air and Air Arabia. The products consist of mainly travel insurance and we hope to see the GWP improve by 2019,” he said.

Razman Hafidz said the company also offers two types of takaful insurance, namely the Takaful Assurance and Takaful Haj and Umrah.

“We recently signed a partnership with a Takaful partner in Bahrain. So, we are looking to expand in the Middle East to at least four other markets as well as in Indonesia,” he said.

The group will also be launching a mobile app within the next six months which will offer upcoming products.

“We want to be part of the growth and widen our reach. I cannot disclose anything yet, but we will be collaborating with a tech entity from the UK to leverage on their experience,” Razman Hafidz said.

Tune Protect Malaysia CEO Khoo Ai Lin said the company will also be going into a critical mass acquisition and will be looking at retail-based types of businesses in Malaysia.

She said they already have a strong commercial-based one but will be looking at blending the portfolio more evenly.

“We are looking into accident and health (A&H) type insurance. We can do creative bundling with companies, so, we are looking at forming partnerships with organisations that have large retail-based businesses,” she said.

She added that they would like to see the motor insurance sector move into the non-motor sector.

“Tickets from A&H will be relatively lower than the motor insurance, as the motor has a small profit margin. We would like to see a higher contribution from the A&H. The setup may be higher but over time it won’t have so many manual processes,” Khoo said.