Yee Ming Lee, co-founder and Group Chief Executive Officer of PolicyStreet shares his journey in identifying existing gaps in the insurance landscape and how his personal experience led him and the team to building the solution that is now part of Malaysian life.
“In 2016, I was involved in a serious accident and despite being insured, I experienced the inefficiencies of the existing insurance industry. This made me realise that if the insured faced such challenges, the situation for the uninsured or underinsured must be even more dire,” Ming says.
In Malaysia, 90% of the population remains underinsured, and over 85% of SMEs lack adequate coverage. Recognising the potential of the insurtech industry within the emerging fintech space, Ming Lee and his team founded PolicyStreet to address these gaps and support financially vulnerable Malaysians.
The startup has since then evolved from an aggregator to a full stack insurtech company, aiming to address the longstanding issue of financial inclusion, particularly for underserved and uninsured communities.
Ming also points out that as the consumers’ needs change, so does their need for specific financial services. Traditionally, people only think of insurance when they enter different life stages.
“For instance, when we start a family or when we enter retirement age, PolicyStreet is here to change that, creating products that are relevant to consumers throughout their lives and integrating insurance options and solutions at various touchpoints,” Ming tells MYStartup.
Early Days
Reflecting, Ming says having access to structured resources and tools for market validation and customer feedback would have been incredibly beneficial. Starting a company, he says, requires validating market demand and understanding customer needs early on.
He aso further shares that access to robust resources and methodologies for conducting effective market research and gathering actionable customer insights would have helped the team to refine their offerings more efficiently.
“Support in building a strong operational foundation, including legal and compliance advice would have provided a more structured approach to our early growth and enabled us to focus more on innovation and customer satisfaction,” Ming adds.
Ming also shares his thoughts on guiding young founders who find themselves in similar predicament when starting out.
“Similar to preparing an umbrella before it rains, it’s wise to start looking for an investor when you’re not in the market for an investor. The efforts in building a strong foundation to facilitate fundraising discussions start long before the official fundraising phase begins.
“It’s essential to focus on networking and building relationships with potential investors, mentors and industry experts early on,” Ming says. He also encourages young founders to attend industry events, join startup communities and leverage on the available network to cultivate these relationships.
The GCEO also says successful funding often stems from strong relationships and trust built in advance of the fundraising efforts. He urges young founders to prioritise learning and deepening their industry knowledge.
It is also vital, he says, to utilise feedback from potential investors to refine their company, understanding what they like and dislike in an investee company to be better equipped when starting their fundraising journey.
Going Above and Beyond
Today, PolicyStreet continues to break barriers achieving new milestones as the company grows with new offerings and partnerships. Personally, Ming says one of the team’s greatest accomplishments was securing more than USD 15 million in funding led by Khazanah Nasional, which has aided the company’s growth and innovation efforts.
“It instilled confidence with Malaysia’s sovereign wealth fund believing in our mission to narrow the protection gap and to deliver positive impact to Malaysians at large. To-date we are proud to have served over 5 million customers,” Ming shares.
Additionally, PolicyStreet’s dedication in supporting the gig economy is evident in their protection of over 200,000 gig workers with a total sum insured exceeding RM20 billion. The insurtech service provider has also onboarded over 200 SMEs and MSMEs onto their Digital HR portal, indirectly enabling the protection of over 30,000 Malaysians.
Their collaboration with Shopee has also led to the sale of over 10 million micropolicies, equating to 1 in 6 Malaysians being insured under the Damage Protection Plan.
Tackling Challenges and Competitors
PolicyStreet faces several challenges, one of which is the need to constantly keep up with the dynamic changes in the industry to ensure the platform remains customer centric. This involves the need to be continuously innovative and adapt to meet evolving needs and expectations.
“While we’re making insurance hyper-relevant to our underserved groups, we also place a lot of our focus on ensuring it is reasonably priced. This balance is crucial to making insurance accessible and financially sustainable without being financially burdensome to our customers, allowing us to protect more people effectively,” Ming says.
There is also the case of a rising number of competitors in the insurtech industry. Ming says staying ahead is done by staying true to their core values of being customer centric. The team aims to deliver solutions that not only sound good on paper but truly move the needle in creating a positive impact.
According to the Fintech Malaysia Report 2022, there are a total of 32 players who are actively involved in the insurtech space in Malaysia as of 2022, compared to only 16 players back in 2019.
Ming also shares that their focus is always on understanding and meeting the real needs of their customers, ensuring that PolicyStreet’s offering provides genuine value and financial protection.
“We are also looking towards more developed markets to anticipate industry trends and introduce solutions at the right time. By staying informed about global advancements and best practices, we can adapt and innovate proactively,” he says, adding that the approach allows PolicyStreet to remain competitive and offer cutting-edge solutions that keeps them at the forefront of the industry.
With expansion efforts underway into Indonesia and the Philippines, Ming says these present a unique set of challenges and opportunities as each country has distinct regulatory frameworks that the team must navigate to ensure compliance and operational efficiency.
Localising their insurance products was essential in order to meet the specific needs and preferences of customers in these markets.
“These markets are already dominated by local insurtech competitors and to succeed, we must differentiate ourselves by offering tailored solutions that address local challenges and provide superior customer value.
“Building strong partnerships with local stakeholders and leveraging our expertise in innovative insurance solutions will be key to establishing a competitive edge and gaining market traction in these dynamic environments,” Ming says.
End Goal
Looking forward, Ming says PolicyStreet’s ultimate goal is to make insurance purposeful and simple for business and consumers. By simplifying and leveraging their expertise in making it more accessible, PolicyStreet aims to empower businesses and individuals to protect themselves effectively and confidently.
“Our vision is to become a trusted partner in safeguarding financial security across our communities, fostering resilience and driving positive impact through innovation. Ultimately, we aspire to contribute to increasing insurance penetration in ASEAN to match the global level of 7% of GDP, as we continue to advocate for greater financial protection and security in the region,” Ming concludes.
This article was first featured on MYStartup here.