Tune Protect Group Bhd (TPG) expects a boost to its revenue growth over the next 12 months, following the rollout of its dynamic pricing optimisation initiative.
The initiative, which was launched in the first quarter of 2019, features real-time optimisation of travel insurance on AirAsia’s booking platform, Edge Markets reported. The feature has been introduced in a staggered basis in Indonesia, Singapore, and Malaysia.
TPG and AirAsia are both part of the Tune Group, a Malaysian conglomerate founded by Tony Fernandes and Kamarudin Meranun.
According to TPG chief executive Khoo Ai Lin, the initiative has yielded positive results so far, and the insurer expects incremental top line growth of 4% over the next 12 months.
“The back end of the real-time optimisation (on AirAsia’s website) is controlled by us, so we curate the insurance options available on the page based on what we think the user will be interested in,” Khoo told the media following TPG’s annual general meeting. “So far, it is working well. We are hoping to roll this out to another airline partner in the Middle East in the near future.”
Khoo added that the dynamic pricing initiative is part of TPG’s new three-year strategy called GAIN, which stands for “global business, AirAsia ecosystem, insurtech capabilities, and national business.”
Travel insurance, in partnership with low-cost airline AirAsia, is one of the main revenue streams for TPG, but Khoo said that the insurer is looking to diversify into other business lines, such as the retail sector.
As such, TPG is looking for new partnerships with large organisations or insurtech start-ups that have access to retail customers.
