MCIS Life strengthens its relationship with Merchantrade
MCIS Insurance Bhd (MCIS Life) has acquired a 4.99 percent stake in Merchantrade Asia Sdn Bhd by purchasing new ordinary shares at an undisclosed sum.
MCIS Life supplied a life insurance protection plan for Merchantrade’s customers, including Malaysians and migrant workers, as part of a marketing distribution agreement signed in 2019.
MCIS Life will benefit from Merchantrade’s digital capabilities, as well as access to an extensive network of over 1,000 physical touchpoints around the country and over three million clients, as a result of this strategic acquisition.
Ramasamy K Veeran, Merchantrade’s founder and managing director, noted that partnering with an established brand like MCIS Life aligns with the company’s expansion aspirations.
insurance offerings since it allows for the better development of next-generation products and services.
“We will continue to accelerate the rollout of innovative financial services and strengthen our comprehensive ecosystem of related technologies, such as global remittance, payments, e-wallet solution, foreign currency exchange, micro-insurance, telehealth, micro-loans, telco services, and more, by building on our core businesses with strategic partnerships and collaborations,” Ramasamy said in a statement today.
Both companies partnered in August 2021 to create a product aimed at marginalised areas, such as Malaysians who are eligible for the Perlindungan Tenang Voucher (PTV) scheme.
The strategic partnership comes at an ideal time, as the value of life insurance and other related financial products has increased as a result of the pandemic.
Merchantrade, according to MCIS Life chief executive officer and managing director Prasheem Seebran, is a fast-growing fin-tech firm that is always at the forefront of digitalisation and driving innovation in the industry.
financial services, allowing the former to focus on its experience in developing a digitally focused life insurer.
MCIS Life’s approach, according to him, is centred on improving customer experience through innovative product solutions and digitised service offerings.
Merchantrade’s technology solutions and entry into the payment market will bolster the synergies between the two companies.
“By 2025, we expect this strategic relationship to generate over 25% of MCIS Life’s non-agency new business contributions,” he said, adding that “we seek to reach our targets by rolling out more products to meet Merchantrade’s target market.”
Since 2019, the acquisition has been a bold move forward, reinforcing the existing relationships between the two companies.
Merchantrade’s mobile e-wallet application and nationwide on-ground touchpoints, which provide access to underprivileged populations, are extremely valuable to MCIS Life.
“At the moment, MCIS Life is Merchantrade’s only life insurance partner.
“This investment is likely to provide tremendous value to us,” Prasheem added, citing the company’s potential and many options to collaborate and generate value for present and prospective clients.
Merchantrade’s underserved client base, such as Malaysia’s B40 segment and migrant workers, will benefit from MCIS Life’s more inclusive, affordable, and clear solutions.
It will also expand its offerings on employee benefits and bespoke products for corporate clients, high-end products for the remittance market and online products for the technology savvy.