Malaysian insurtech PolicyStreet can coexist with AI platforms – exec

Malaysian full-stack insurance technology company PolicyStreet views AI-driven platforms such as Insurify Inc. as part of the broader evolution of the industry, rather than a direct challenge.

PolicyStreet provides digital insurance to businesses and consumers across Asia and Australia, partnering with over 40 insurance and takaful providers to co-create and distribute insurance. Its reinsurance unit, Polisea Labuan Ltd., allows PolicyStreet to retain a share of the risks generated through its own channels, RAM Ratings wrote. Polisea Labuan underwrites extended warranty, mobile damage protection coverage, personal accident policies and satisfaction guarantee programs.

Investors also appear upbeat about PolicyStreet as the company has closed one of the largest fundraising rounds by an insurtech in Malaysia. The company secured $21 million in the first close of its series C funding round, led by Cool Japan Fund Inc., with participation from existing investors Altara Ventures and Gobi Partners, among others.

"Different players will adopt different strategies, and we believe there is room for multiple approaches to coexist," Winnie Chua, co-founder and chief product officer of PolicyStreet, told S&P Global Market Intelligence in an email.

Differentiation

PolicyStreet has over 5 million customers and has a total sum insured exceeding $10 billion. Additionally, the company recorded over $1 million in profit for 2025. PolicyStreet has achieved a "holy grail" for insurtechs by moving from a growth story to now also having a "profitability engine," George Kesselman, CEO and founder of the Insurtech Asia Association, said in an interview with Market Intelligence.

Chua said strong underwriting played a key role in PolicyStreet achieving profitability, explaining that an insurance product that cannot sustainably support claims over time ultimately fails its purpose.

"However, we believe underwriting should not be viewed purely through the lens of loss minimization. In our view, a product that generates very low claims is not necessarily a successful one," Chua added. "It may instead indicate that the coverage is not meaningful or accessible enough for customers when they need it most."

Polisea Labuan has an "a+" LECA rating at RAM Ratings, which indicates adequate capacity to meet policyholder obligations and financial commitments.

AI platforms emerge

US-based Insurify's launch of a car insurance comparison service through OpenAI LLC's ChatGPT app in February has prompted questions about the potential impact of AI on the insurance industry.

The impact of AI-driven insurance platforms on PolicyStreet and other Southeast Asian insurtechs with online distribution platforms is still an open question. The immediate effects on insurtechs are going to be limited as they will likely run into problems seen before, particularly around familiarizing customers with their offerings and customer preference for buying insurance the traditional way, face-to-face, Kesselman said, adding that AI use cases will likely focus on back-end efficiencies.

PolicyStreet's AI adoption is centered on strengthening its back-end capabilities — particularly in data processing, claims handling and operational workflows — leveraging AI to improve efficiency, reduce errors and enhance overall understanding of risk, Chua said.

The company will progressively explore broader applications of AI across the business, including customer-facing use cases. However, the priority is to ensure that any deployment is meaningful, well-governed and aligned with long-term sustainability, she added.