Aviva Newsroom - 11 July 2007

Tune Money appoints CIMB as insurance partner

11 July 2007

Kuala Lumpur, 11 July 2007 - Tune Money Sdn Bhd, Malaysia's first no-frills one-stop financial services company, has appointed CIMB Aviva, the newly formed insurance joint venture between CIMB Group and UK insurer Aviva, as its partner to help develop and underwrite protection and General Takaful products bearing the Tune Money brand.

Tune Money Sdn Bhd Chief Executive Officer Tengku Zafrul Aziz said in his speech that of the seven companies, which participated in the RFP (request for proposal), CIMB Aviva was selected because it had the requisite experience to tackle the underserved market over the Internet:

"They actually understand the market we're targeting because they've done it before. In fact Aviva was Virgin Money's first partner. And they don't look at us as just another distribution channel but as a significant partner to penetrate an entirely new market."

The two companies signed a partnership agreement in Kuala Lumpur yesterday. The signing was witnessed by CIMB Group Chief Executive Officer Dato' Nazir Razak and Tune Money's founder Dato' Tony Fernandes.

Mr. Ho Ming Heng, the Chief Executive Officer of the yet-to-be-named CIMB Aviva joint venture, expressed his satisfaction at being selected as Tune Money's partner for insurance:

"I am delighted with our alliance because we are working with a partner whose philosophy is to bring financial services to an underserved consumer segment. And as a young business, this segment is a critical building block of our joint venture growth in Malaysia."

Malaysians are still relatively under-insured compared to their counterparts in developed countries. In fact, according to the 2005 Bank Negara Malaysia insurance report, overall insurance penetration rate in Malaysia, measured in terms of combined premium income to Gross National Product (GNP), was only 5 per cent.

Tune Money intends to target the underserved segment of the market by offering products that are

  • Affordable;
    • Priced lower than the market;
    • Automated sales and support process for pricing efficiencies
  • Easily available;
    • Available 24/7 online over a secure website, but with a variety of offline payment channels such as FPX, Bank Simpanan Nasional and CIMB Bank branches;
  • Flexible
    • Customers can decide what they want to cover rather than be presented with a pre-determined package, which will help reduce premiums.
  • Simple and Transparent
    • Easy-to-understand policy documents without the complex industry jargon;
    • Transparency - Upfront "fine print" so there are no "surprises" during claims;
    • Downloadable policy schedule which functions as a legal document;

Under the terms of the strategic alliance CIMB Aviva will develop and underwrite protection and General Takaful products for distribution by Tune Money via its portal Products shall be sold and distributed under the Tune Money brand but CIMB Aviva will undertake customer services such as claims. CIMB Aviva will also provide support and training for Tune Money employees in relation to product knowledge and service processes.

Tune Money protection and General Takaful products will be rolled out in phases. The first batch of products is expected to be launched in September this year.

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