RHB currently has a 4.3% market share for gross direct premiums and are targeting RM5m in its overall GWP for the 1st year
By LYDIA NATHAN / Pic By MUHD AMIN NAHARUL
RHB Insurance Bhd aims to generate 10% of its gross written premium (GWP) from the digital space in three to five years via the launching of its mobile app, “RHB Insurance Mobile App”.
At present, RHB has a 4.3% market share for gross direct premiums and said they are targeting RM5 million in its overall GWP for the first year which includes general insurance.
Motor insurance is the business’ largest contributor, delivering 33% of the total GWP for the fourth quarter ended Dec 31, 2017.
RHB Insurance MD Kong Shu Yin (picture) said the app gives customers a faster way to purchase motor insurance and road tax.
Kong said he is confident that the app will transform the way customers purchase, as well as monitor their insurance and road tax renewal.
“I believe this effort, which is in line with our digital transformation programme, focuses on delivering value-added interactions will empower our customers,” he said to reporters at the launch in Kuala Lumpur yesterday.
Kong said with an investment of less than RM1 million, the app was built on a digital ecosystem to allow customers, agents, as well as other business partners to interact with one another more easily.
“At present, less than 1% of insurance are sold online because there are still people who prefer seeing an agent.
“Also, up till last year, all the major classes of insurance were tariff-based which meant there was not much difference from one company to the next in terms of pricing.
“However, last year a phase liberalisation by Bank Negara Malaysia meant there will be a differentiation in pricing, which means people will now have the option to shop for prices online,” Kong said.
Kong hopes to see a higher take-up rate as the app undergoes more updates and features in the months to come.
Group COO Rohan Krishnalingam said the app was developed after much research and consideration.
“Going to an agent or bank requires time and being stuck in traffic or looking for a parking spot. This app gives people the option of checking for quotations and purchasing their insurances from the comfort of their homes, anywhere in the world, at any time,” Rohan said.
According to him, last year, a mortgage app was developed and subsequently launched, generating 17% of the take-up rate for mortgage applications as well as approvals.
RHB Insurance has also launched its “Dah Cover Campaign” as part of its 40th anniversary celebration which aims to encourage Malaysians to travel within the country and discover hidden gems.
The campaign targets to increase its personal accident and travel insurance coverage by offering a 40% discount during its campaign which runs from June 5, 2018 until Sept 4, 2018.
Its group chief marketing officer Abdul Sani Abdul Murad said some of the reasons that locals travelled abroad are because they didn’t know where to go in Malaysia and second, the cost factor.
“The app will hopefully give people an idea on where to travel as it will feature some travel hacks and tips. And people can enjoy themselves knowing they’re protected,” he said.
The campaign will also cover 24/7 roadside assistance for travellers who drive under RHB’s comprehensive motor insurance.