KUALA LUMPUR: Tune Protect Group Bhd is embarking on an ambitious three year strategy plan called GAIN that will see the group diversifying its business beyond insurance protection.
GAIN compromises Tune Protect's four core business segments namely Global business, AirAsia ecosystem, Insurtech capabilities and National Business.
"Our near-term focus within the global business is to focus in partnerships within Asean and Indochina markets which present opportunities in retail and digital as they both have a sizeable young population, are relatively low in insurance penetration and are rapidly embracing digitisation," said chief executive officer Khoo Ai Lin after Tune Protect's annual general meeting here today.
"This is because within Global business, we are expanding from pure travel reinsurance to other retail lifestyle lines of business, as well as technology capabilities," she added.
Through GAIN, Khoo expects to have at least 42 million policies by 2022. It has acquired some 10 million policies a year.
Tune Protect has been making inroads in Indonesia through a Memorandum of Agreement (MoA) in first quarter this year (1Q19).
The MoA involves an Indonesian insurer and the national association of tours and travel agencies to distribute travel insurance through and integrated B2B online platform offered by Tune Protect for travel agents.
Khoo shared that its travel business had grown in tandem with AirAsia's expansion, which has seen its passengers carried grow to 80 million last year.
"We fully intend to tap into this massive network to reinforce our strategic partnership not just within the AirAsia Group but also across the Tune Group ecosystem.
"Our Dynamic Pricing initiative went live in several markets in 1Q19 and that will provide four per cent incremental revenue to us,” Khoo said.
The company is looking at a number of firms to either partner or acquire in order to drive its Insurtech capabilities.
"We are actively seeking these firms that we can either acquire or grow a strategic partnership with. It is very important, however, that these firms will strategically help with our push forward and that we can monetize from them.
"We are looking beyond vendors and the likes, but instead an acquisition that is on the same level as us," she said.
On the National insurance business, Khoo said the liberalisation measures in 2019 would exacerbate product pricing competition, leading to margin erosion.
However, the group is well positioned to withstand the impact through its agency force and innovative solutions.
Tune Protect reported a net profit of RM52.9 million on the back of RM566.1 million revenue for the year ended December 31 2018.