Fatfish Group’s (ASX: FFG) insurtech investee Fatberry Sdn Bhd has continued to benefit from the mounting demand for online insurance products in South East Asia with a new sales record.
In May, Fatberry’s insurance product sales hit a new record $408,792, which was 194% higher than the previous best in January this year.
“The insurance industry is rapidly going through digitisation in South East Asia,” Fatberry chief executive officer John Tan noted.
“Fatberry is growing fast, our execution capabilities over the past few months have been outstanding.”
Digital insurance market
Mr Tan said the company will continue to work towards becoming a dominant player in the digital insurance marketplace, with Malaysia the initial focus.
In 2020, Malaysia’s online vehicle insurance market was estimated to be worth $2.7 billion.
Fatberry plans to rapidly increase its market share in this space via more partnerships with insurance providers to boost its motor vehicle insurance product choices.
The company is also refining its platform to ensure the online insurance purchase experience is as seamless as possible.
As it progresses these strategies, Fatberry intends to expand its insurance offerings and is in advanced discussions with an unnamed provider to potentially offer Malaysia’s first digital medical insurance products.
Fatfish and its subsidiary Abelco Investment Group collectively own 61% of Fatberry.
In March, Fatfish boosted its holding in Fatberry from 53.3% to its current level, after revealing Fatberry was its fastest growing investee.
To increase its stake to 61%, Fatfish and Abelco participated in Fatberry’s funding round that saw it raise $800,000.
Fatfish contributed $285,000 to the round, while its other subsidiary Abelco put in $329,000.
Fatfish chief executive officer Kin Lau says the increasing number of consumers purchasing online insurance was an “unstoppable macro-trend”.
Fatberry launched its insurtech platform in April 2020, with growth averaging more than 100% month-on-month between June 2020 and February 2021.