Malaysian Re’s latest report identifies three key trends reshaping the insurance landscape in Malaysia and Southeast Asia, where the overall insurance penetration is 5%. Life insurance coverage is higher at 3.7%, while non-life stands at 1.3%.
Insurers are focusing on enhancing customer experiences by integrating insurance with preventive services and lifestyle propositions. Collaborations are also expanding, allowing insurers to tailor offerings to customer needs.
The report notes that only 41% of Malaysians hold life insurance, often seen as an investment rather than a risk management tool. The COVID-19 pandemic has heightened awareness, leading to an increase in new life insurance policies in 2021. However, barriers such as affordability persist.
The family takaful sector has grown nearly 50% in premiums in 2021, driven by investment-linked products. To improve insurance uptake, regulatory interventions may be necessary to address awareness and affordability issues, crucial for mitigating financial risks.
