Covid-19 accelerated the trend of digital transformation with many more consumers adopting online during lockdown to manage their everyday life needs. Additionally, the government’s policy of insuring the uninsured has progressively pushed insurance penetration in Malaysia and led to a proliferation of insurance schemes.
1. Malaysia's digital economy is flourishing, thanks to a number of supportive factors that include a young population, improved industry infrastructure, and government policy backing
2. Insurance industry in Malaysia also underwent digitization as a result of the COVID-19 epidemic; however online penetration in the industry remains less than 2%
Malaysia Insurance Industry Segmentation (GMV $Bn) – 2022
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General Insurance and General Takaful having around 2% online penetration, while Family Takaful and Life Insurance contributing less than 0.5%. The total Online penetration stand out to be less than 2% with the gross direct premium of more than USD 100 Mn
3. Even with a growing digital appetite, omni-channel distribution, with a mix of digital and human touchpoints is a must as consumers in Malaysia are not comfortable with sharing personal data, even in exchange for better policy terms
Customer Journey in Insurtech
4. Owning to the increased government focus, technological developments, development of Aggregators, and increased convenience, Malaysian Online Insurance market is expected to grow with a 10-12% CAGR
Market Size for Malaysia Online Insurance Market, ‘21-’26F
In the future, it is expected that Malaysian Online Insurance market will grow with a 10-12% CAGR due to increased government focus, technological developments, development of Aggregators, and increased convenience. The market will pick up for both Motor and Non-Motor Insurance.
Future Outlook & Market Segmentation for Malaysia Online Insurance Market, ‘21-’26F
General insurance has seen an increased acceptance for online registrations & is expected to dominate the Online Insurance Market in Malaysia followed by Life Insurance, General Takaful, and Family Takaful.
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