Wednesday, Oct 28, 2020
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Malaysia-based insurtech PolicyStreet secures $1.8 mn funding

PolicyStreet funding
The startup will use the funds to improve product offering, increase sales and also expand in new markets

 

Malaysia-based insurtech startup PolicyStreet has secured around $1.8 million in a fresh funding round, the media reported.

The startup will use the funds to improve its product offering, ramp up sales and also launch its business in other emerging markets across Southeast Asia.

Reportedly, PolicyStreet is planning to expand in Indonesia as well as Indochina within the next six to 12 months.

The funding round for PolicyStreet was led by KK Fund.

Other investors that participated in the funding round for PolicyStreet include Singapore VC fund, Spiral Ventures.

PolicyStreet gained the support of both international and local angel investors through equity crowdfunding platform PitchIN.

Since the beginning of this year, Malaysians have become more cautious about their expenses due to unfavourable market conditions brought on by the coronavirus outbreak. This has resulted in an increase in demand for small-ticket or bite-sized insurance products that meet a specific need, according to Lee Yen Ming, co-founder, and chief executive at PolicyStreet.

He told the media, “These ‘sachet-type’ insurance policies typically have lower premiums and coverage compared with traditional policies. From our observation, we know that Malaysians want more of these types of products, but there is still a lack of such products in the market. A wider availability of sachet-type insurance policies would definitely help to raise the insurance penetration rate in the country, which is still low.”

Established in 2017, PolicyStreet claims to have reached roughly 225,000 customers, selling 36,000 policies worth roughly $832.8 million. Its partners include Great Eastern, Allianz, Zurich, AXA, and Manulife.

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