Senang, a Malaysian insurtech startup, has announced its expansion into the Philippines through its subsidiary, Senangdali. This strategic move is in partnership with the Philippine fintech firm GoodTech, aiming to offer loan protection insurance products tailored specifically for rural banks. The initiative is designed to enhance financial security for over 57 million Filipinos, representing 52% of the country’s population. This expansion is facilitated by the Malaysia Digital Economy Corporation (MDEC) through the Digital Exports Division (DEX) Connex Philippines 2024 programme.
Senangdali’s partnership with GoodTech marks a significant milestone in the company’s expansion strategy. The collaboration aims to provide loan protection insurance products that are seamlessly integrated with the existing offerings of rural banks in the Philippines. This initiative not only enhances the service portfolio of these banks but also strengthens the financial stability of their clients. The insurance products are underwritten by local insurance providers, ensuring that they meet the specific needs of the Filipino market.
The partnership is part of the DEX Connex Philippines 2024 programme, which is designed to expand the revenue footprint of Malaysian tech companies into regional and global markets. Following the rollout of the loan protection insurance, the partnership plans to introduce a motor aggregator platform and personal accident insurance, further diversifying the range of services available to rural banks. This strategic collaboration is expected to reach at least one million customers within the next 12 months.
Customised Insurance Solutions
One of the key features of Senangdali’s insurance products is their customisation to fit the unique needs of each rural bank. The loan protection insurance covers various aspects such as loan amount, tenure, death, personal accidents, and hospital income. Plans to include credit default coverage are also in the pipeline. This tailored approach ensures that the specific needs of the banks and their customers are met with precision.
The claims process is simplified to make it easy for rural customers, with claims typically processed within seven working days. Additionally, 10% of the claim amount is transferred to bank or e-wallet accounts within 24 hours. The premiums are affordable, starting as low as $3, and are embedded as part of the loan instalment payment, so clients do not have to pay extra. This affordability and ease of use make the insurance products accessible to a wide range of customers.
Senangdali’s CEO, Sharian Raj, emphasised the importance of customisation and integration in their products. By tailoring the insurance solutions to the specific needs of each rural bank, Senangdali ensures that their clients receive the best possible service. This approach sets their products apart from competitors and positions them as a leader in the insurtech industry.
Challenges and Future Plans
While the expansion into the Philippines is an ambitious initiative, it is not without its challenges. Ensuring smooth Application Programming Interface (API) integration across diverse banking systems is a significant hurdle. Providing adequate training to bank staff and customers is also crucial to the success of the initiative. Additionally, navigating the regulatory landscape to ensure full compliance is essential.
Despite these challenges, the future looks promising for Senangdali and its partners. The company is committed to overcoming these obstacles and providing high-quality insurance products to the Filipino market. The partnership with GoodTech is expected to pave the way for further innovations and expansions in the future.
Looking ahead, Senangdali plans to introduce more insurance products, including motor aggregator platforms and personal accident insurance. These new offerings will further enhance the service portfolio of rural banks and provide additional financial security to their clients. By continuously innovating and adapting to the needs of the market, Senangdali aims to solidify its position as a leading insurtech provider in the region.
