Industry-first complimentary insurance for riders
Defining a new blueprint for scalable growth through co-creation, focus on customer experience, and embedded finance solutions.
The evolution of payment rails and growing demand for embedded finance is moving at a rapid rate, especially in Asia. For corporates seeking innovation and growth, this is yet another opportunity to explore new ideas and bring them to life – from business models to improved customer experience and loyalty.
Working with multiple partners could be the key to success. A recent co-created solution that leverages payment rails is helping one corporate strengthen its customer base in the motorcycle industry.
Tapping into regional growth
Many people in Asia depend on motorbikes in their daily lives. In Indonesia and Malaysia for example, more than 80 per cent of households own at least one motorbike. Asia accounts for more than 80 per cent of global demand for motorbikes.
Such growth offers scalable opportunities for Castrol, one of the world’s leading lubricant brands. Castrol prides itself on its innovation on both products and services, this industry first solution is a key milestone in its success with technology and consumers
Going the extra mile
While customer rewards are certainly not a new concept, advancements in technology and data are enabling next-level implementation.
In Castrol’s case, the company recently introduced a complimentary insurance protection programme for motorcyclists in Indonesia and Malaysia. The new insurance programme is available free of charge to motorcyclists who purchase select Castrol oil products, with an aim of elevating customer engagement and brand loyalty.
Yet in the era of instant gratification, customers demand more. As such – and in an industry first – this complimentary insurance is available instantly, via the use of QR codes.
The policies provide motorcyclists with one month of life cover for disabilities and death caused by road accidents. To enact a new policy, Castrol’s customers simply need to scan a QR code and upload a photo of their product receipt and personal details on the Castrol KitaCare portal. They then receive their complementary digital policy within minutes, with zero paperwork required.
The programme has been recently launched in Indonesia and Malaysia with plans already underway for implementation elsewhere in Asia.
The power of co-creation
The co-creation behind its development draws together key services from each of Castrol’s partners:
- Standard Chartered’s embedded finance and global payment rail capabilities.
- Platform offered by an insuretech firm, Zensung Pte Ltd.
- Insurance underwriting by a life insurer, MCIS Life for Malaysia.
For Castrol, working with its partners proved a far more efficient approach than an equivalent siloed one. Each party leverages their respective strengths, saving time and resources, to accelerate development of the offering for Castrol’s customers.
The Castrol co-creation success story sets a benchmark for the region. Similar collaborative initiatives that bring together solutions and expertise of banks with capabilities of multiple ecosystem players are sure to play a central role in enabling further growth stories. Moreover, such models can often be scaled at ease or even applied across multiple industries.
Ankur Kanwar, Global Head of Structured Solutions Development and Head of Cash Products, Singapore and ASEAN, Standard Chartered.
Leading with scalability
In the Castrol case, the flow of funds that enables the rapid setup of new insurance policies is powered by Standard Chartered’s global payment rails. Critically, the Bank’s well-established networks will also facilitate the planned scaling of this insurance programme to multiple markets across Asia.
Even prior to the advent of payment rails, Standard Chartered has been a leader in innovative solution design for the region, especially in payments. Client centricity – particularly important in a region as diverse as Asia – is another factor the Bank has long focused on. Combining these elements, Standard Chartered was the natural choice for Castrol, especially given its existing cash management relationship with the Bank.
With Standard Chartered continually investing in its payment rails, the groundwork has been laid for the regional expansion of Castrol’s new programme. In addition, the Bank’s data analytics capabilities will help Castrol understand individual market behaviours, enabling the tailoring of marketing strategies and campaigns as it continues its growth pursuits across the region.
A blueprint for prosperity
At Castrol, we are passionate about providing bikers with the best possible products and experience. This new insurance program reflects that commitment. We are thrilled to partner with Standard Chartered, MCIS Life and Zensung to offer our customers this valuable complimentary covering, giving them additional peace of mind on every ride.
Mike Zhang, Vice President Asia Pacific, Castrol.
Moreover, innovation also helps boost financial inclusion. With easy access to insurance, bikers who may have previously faced barriers to such products can now be covered without direct engagement with an insurance provider. In turn, this should help build a greater sense of social responsibility among the huge motorcyclist populations in Asia.
With the benchmark now set for co-creation and innovative use of embedded finance, these positive knock-on impacts could soon spread across other industries in Asia – and beyond.
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