Introduction

“GF40” is a technology company transforming Insurance & Takaful and aims to be Malaysia’s first regulated Digital Insurance Company within 2 years. Our Inhouse developed technology, EVAN (Expert Visual (aided) Actuarial Nexus) performs E-KYC, onboarding of customers, underwriting, policy management and Claims processing in 5 simple steps in less than 5 minutes. Our brands, MyLindung (Family Takaful) & FlexyProtect (SME Insurance), offer seamless Takaful experience to individuals and SME Insurance experience to businesses in partnership with our underwriters. Through a proven “Digital Managing General Agent (MGA)” model, GF40 partners with its underwriters in a unique, regulated manner giving it an edge against “Insurtech” companies. This experience is delivered to customers directly by ourselves and through our B2B partners. The future of Insurance & Takaful, Is HERE.

What We Do

The Challenge

In Malaysia, 68% of individuals and 50% of businesses have no insurance of any type. Amongst B40s uninsured is over 80%. There are more than 300,000 insurance agents across conventional, takaful, life insurance and general insurance industries & yet, the uninsured rate has remained fixed for years, prompting BNM and the Government to take actions. Other contributing factors can be attributed to the complexities of current policies, past experiences of customers (challenges in claiming upon incident), pricing, lack of trust in the industry and limited availability of product distribution.

The situation is not much different even across neighbouring countries. Indonesia for example has a penetration rate of only 3% while across South East Asia is only at 4%.

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Our Solution

At GF40, we understand that structural legacy challenges need groundbreaking novel solutions. And those solutions must be the direct opposite of the challenges. Our solutions must therefore be simple, accessible, affordable, and with customer satisfaction at the center of it all. So, we developed EVAN and deployed it at the core of both our brands MyLindung & FlexyProtect. Through EVAN, we achieved Simplicity, Affordability, and Accessibility.

EVAN simplifies the Customer E-KYC, onboarding, underwriting, policy issuance, policy self-management, claims submission and claims processing to a mere 5 steps with no human intervention in between. This allows us to deliver simple, transparent products to the Customer at their fingertips.

Why Are We Different

GF40’s advantages over competitors:

1. “Digital Managing General Agent” model allows it to operate as an extension of an Insurance/Takaful company.

2. GF40 will be entering into an exclusive “Material Outsourcing Contract” with its Takaful underwriter that allows it to perform end to end product sales to customer servicing and claims processing services. 

3. GF40’s products will be only the 2nd proprietary branded product line from an Insurance Technology startup. 

4. GF40 is the only startup in the market currently providing a Family Takaful solution.

5. >GF40 is among the first startups in the market currently able to provide immediate insurance coverage for SME businesses with instant cover note issuance.

6. GF40 possesses the only API driven distribution model with an end to end solution for Life Insurance/Family Takaful market

7. For Family Takaful products, ours is among the most competitively priced products compared even against incumbents.

8. GF40 owns the sales rights of customers that it sells to. This basically means that GF40 is able to up/cross sell to customers and its underwriters cannot circumvent it.

9. GF40 is the only end to end insurance technology company whose core technology is 100% inhouse developed

From a growth and investment perspective, a market survey across the world proves that adopting the Digital Managing General Agent is the approach to take to achieve growth and scale. Bulk of the largest investments in the Insurance Technology sector around the world have been in companies which have deployed a “Digital Managing General Agent” such as Hippo & Trov or a digital insurance model such as SingLife & ZhongAn. These companies thus far have also proven to be the most successful with market values in the Billions of USD and growth to match. The reason behind this is simple. Ownership of Products Customers

Our Revenue Model

GF40 generates one pipeline of revenue from selling and managing Family Takaful policies. We charge a fixed amount of management fee from every policy sold by GF40 for the lifetime of the policy.

GF40 also generates a parallel pipeline of revenue from sales of SME Insurance policy from which it makes a variable amount of commissions from every policy that it sells.

In terms of customer acquisition, GF40 will be acquiring customers through the following;

1. Digital Marketing

2. Offline Marketing & Road shows

3. B2B Partnership – marketing & database sales

4. Authorized Agents*

Our Market Opportunity

Malaysia

Malaysia has a population of 32mil people and 907,000 SME businesses. Of these, over 68% of Malaysians do not have insurance and 50% of SME do not have business insurance. The B40 and Lower M40 segment make up approximately 19.2M people in Malaysia.

GF40 believes that at least 30% of this segment and 20% of the Uninsured SMEs can be successfully targeted to become GF40’s customers. This would result in a potential customer base of roughly 2.3m people for Family Takaful and 90,000 SMEs. We believe these numbers are achievable based on facts surrounding the current market, as has been proven through a sudden growth in digital insurance sales in Malaysia since the COVID-19 pandemic.

 

Our Strategy

GF40 will build its brand presence in the market across multiple social media platforms. On top of this, GF40 is tapping into the brand presence and name of its B2B partners to build stickiness and market its product. This also allows us to increase persistency among acquired customers. When marketing through our B2B partners, user experience is of the highest importance to ensure that customers can subscribe to products in a few taps and not over 20 pages of questions. This is what GF40 has been able to do with its partners.

Furthermore, GF40 was built from the foundations to integrate non-conventional marketing channels such as village heads, prayer leaders and local grocery stores. These act as local influencing/trust centers for many community centers. It is only natural that GF40 builds a network of these centers who can help market GF40 products. GF40 has already started building this network and will deploy them with sufficient training by Q3/4 of 2021.

Our Achievements

GF40 has over the past 2 years worked on securing regulatory approval and compliance for its business. At present, GF40 has already reached an “In Principle” agreement with its Takaful partner to enter into a “Material Outsourcing Agreement”.

For SME Insurance, GF40 has already been appointed as a Corporate Agent of AXA Affin General Insurance and secured specialized products for its platform which is being integrated at present.

On the marketing/distribution side, GF40 has already signed marketing contracts with the following partners and is working on multiple other partners.

 

Indicative Usage of Funds