Malaysia’s online insurance industry set to grow on rising internet penetration, government support and low infrastructure cost: Ken Research – InsuranceNewsNet
GURUGRAM, India, December 14, 2022 /PRNewswire/ — Malaysians are embracing digital channels for their insurance needs. The market is currently in a growth phase, with increasing adoption through an extensive network of agents, insurance aggregators, financial advisors and online websites. Online insurance in Malaysia market The ecosystem is made up of entities such as insurance companies (offline and online), online aggregators, and two regulatory bodies.
During the Covid pandemic, there has been a significant increase in online insurance users due to people’s preference to avoid physical contact and demand for health insurance.
The government has provided support to the online insurance industry by creating several agencies and regulatory bodies that oversee and assist the operations of insurance players.
Mining social networks the data improves risk assessment for insurers, strengthens fraud detection capabilities and enables new customer experiences.
Government involvement: Bank Negara Malaysia (BNM) is preparing a regulatory framework for digital insurers and digital takaful operators, which will be finalized in 2022. The proposed framework aims to attract new digital players with innovative solutions to fill protection gaps. Increasing implementation of Life Insurance and Family Takaful by several government agencies across Malaysia is mainly driving the takaful insurance market. Additionally, the large presence of the Muslim population in the country is catalyzing the growth of the market.
Pandemic growth: Due to COVID-19 related lockdown restrictions and global automotive chip shortage, the auto insurance segment is expected to grow by 1.9% in 2022, driven by an increase in vehicle sales. Telehealth services acquired during the pandemic. Restrictive measures amid the pandemic have prompted insurers to launch usage-based insurance policies to help customers financially. They launched digital solutions to protect customers.
Portfolio of construction products: The aggregation model is growing and expected to increase in the future due to easy comparisons and discounts. More than 80% of Malaysian consumers are willing to share their financial, health and other personal data to access additional value-added services. Signaling consumer confidence in their insurers, thereby opening the door for those insurers to build a stronger relationship with consumers. The digital channel for distributing insurance solutions in the country has gained traction due to the restrictive measures imposed in the country during the pandemic.
Singapore’s online insurance market is expected to grow at a double-digit CAGR between 2021-2026F, driven by the implementation of technology services led by insurtech companies. Adoption of new technologies, growing demand for electric vehicles, lifting of travel restrictions, and government initiatives are other factors that will lead to the growth of the industry. Online insurance is much cheaper than offline insurance and associated with high internet penetration in Singaporethese factors contribute to the spread of online insurance, especially among the younger population.
online insurance market in Thailand has grown at an increasing growth rate supported by the increase in the continued growth of the aging population in the country, as well as increasing internet penetration and growing use of electronic platforms. Thailand consumers have dynamically evolved in their quest for convenience, health and value with the pandemic forcing everyone to purchase insurance with growing awareness of financial planning further accelerating these trends as well as the evolution consumer needs and preferences. The implementation of the policy of the Insurance Development Plan 4.0 of the country’s digital transformation is a major lever for market growth.
With over 150 registered insurers, Indonesia lags behind other Asian countries in terms of insurance penetration rate (2.8% against a global average rate of 6.1%). Insurance in Indonesia is usually purchased only under regulatory requirements and those who buy it out of need usually opt for packages that provide additional benefits such as repair coverages, prescription drug cost coverage, etc. Among the multiple types of insurance provided in the country, life insurance has been observed to be the leader with a market share of over 40%, mainly driven by “benefits and investment” related products.
The GWP collection amounted to $12 billion, mainly driven by growth in non-life health and motor insurance products. Personal insurance and fund accumulation contributed 28% of total GWP collection. Whereas United Arab Emirates leads among GCC peers in terms of insurance penetration of 2.9%, it still lags behind the average insurance penetration of emerging countries which stands at 3.2% and the world average of 6.1%. Motor across mandatory insurance requirements United Arab Emirates associated to Health insurance in Abu Dhabi and dubai contributed to raising people’s awareness of the protection of their risks.
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