Grab Financial sells 100 million insurance policies in less than 2 years

Grab Financial Group (GFG), the fintech unit of super app Grab, announced that it has cumulatively sold over 100 million insurance policies in less than two years across Southeast Asia.

Reuben Lai, head of Grab Financial Group/ Photo credit: Grab

Launched in April 2019, GFG offers a ride cover that allows consumers to opt in and purchase an insurance for S$0.30 (US$0.22) when they book a ride on the app. It also offers a travel cover, the premium start from about S$2.50 (US$1.86) per day.

Last year, GFG launched a digital and instant cash loan solutions called Merchant Cash Advance for micro, small and medium-sized enterprises (SMEs) in Thailand.

“While Covid has brought more users online, mass adoption of digital financial services depends on how well companies can build financial services that are truly accessible and affordable,” GFG said in a statement.

With the Covid-19 pandemic in mind, GFG rolled out Hospital Cash Cover, a consumer hospitalization product in alIndonesia in the fourth quarter of 2020. In February, the company introduced Community Cover, a second critical illness product.

Grab is poised to leverage its financial products in Southeast Asia, where more than seven out of 10 adults have no access to credit cards, a long-term savings product, or even a basic bank account.

The company said it is “well-positioned” for the future and will focus on personal data protection, improving cybersecurity, and lowering the cost of funds.

In January, GFG raised over US$300 million in a series A fundraising led by South Korea’s Hanwha Asset Management, marking the first time that the company raised money outside of existing investors for its unit.

See also: Beyond FOMO: Why Grab should race to an IPO fast

The development also comes amid Grab’s alleged plans to go public as soon as the second half of this year. The company has reportedly selected Morgan Stanley and JPMorgan Chase to work on its financial debut, with additional banks potentially added to the list.

Correction (March 31, 11.58 am): The story was corrected to reflect that the company’s business was not alive solely due to the digital and instant cash loan product.