PolicyPal — a digital insurance app by a Singapore-based startup — has raised seed funding with participation from 500 startups and undisclosed angel investors.
The fund will be used to further market and develop the product to enter the Monetary Authority of Singapore (MAS)'s FinTech Regulatory Sandbox.
The startup will test their solution in the sandbox over a six-month period starting today. It will collaborate with NTUC Income (Income) and Etiqa Insurance to distribute insurance products to consumers via the mobile app.
"The MAS sandbox enables PolicyPal to experiment with offerings in making insurance simple and convenient for all. We are excited to partner with PolicyPal and change the game of insurance in Singapore with more customer-centric innovations," said Peter Tay, Income's Chief Operating Officer.
Aiming to empower consumers to better understand their insurance policies, PolicyPal shows existing insurance coverage, payment and renewal dates on a dashboard on the app.
The app also uses Optical Character Recognition (OCR) technology to digitise existing insurance policies. After which, the app analyses the user's current coverage and suggest ways to further improve his/her coverage. It also utilises technology to protect sensitive data stored.
Besides that, PolicyPal encourages the insurers to think digital. "We partner with insurers to provide an alternative platform for consumers that will automate part of their insurance journey such as the consolidation of insurance policies and answering basic consumer questions." said Val Ji-Hsuan Yap, PolicyPal's CEO and Founder.
Inspired by personal experiences
Founded last April, the startup was accelerated by Startupbootcamp FinTech and is now in an equity-free insurtech accelerator programme, 'Income Future Starter, powered by TAG.PASS'.
The idea of PolicyPal came about due to its founder's personal experiences. When Yap's mother was diagnosed with cancer in the past, her insurance claim was rejected because it had lapsed for a few months before subsequent payments were made. In the same year, her dad passed away due to a sudden heart attack. Since she was unaware of her father's insurance coverage, her family had to visit all the insurer branch offices to check on her late father's policies.
"Many people are not sure of their insurance coverage and only realise the importance of it during times of emergencies. PolicyPal was created to keep everyone on top of their insurance coverage so they don't have to wait until it is too late," said Yap.
PolicyPal currently has 11 employees, with its technical team led by Sunjin Lee. Lee was previously the founding software engineer in viki.com, which was acquired in 2013 by Rakuten for US$200 million.
So far, the app has received more than S$6 million premiums worth of policies on its platform. The app is available for download for free for iOS and Android devices.