Malaysian Re’s recent report outlines three significant trends impacting the insurance sector in Southeast Asia, crucial for Malaysia’s insurance penetration, which was 5% in 2022. Life insurance penetration reached 3.7%, while non-life lagged at 1.3%.
Insurers are rethinking customer engagement, bundling insurance with preventive services and integrating offerings with lifestyle products for enhanced value. Partnerships are also expanding product reach and tailoring experiences.
Despite increased awareness of insurance needs following the COVID-19 pandemic, challenges remain. Only 41% of Malaysians have life insurance, often viewed as an investment rather than a safety net. The family takaful sector, however, has seen nearly 50% growth in 2021, driven by investment-linked products.
Addressing barriers related to affordability and awareness is vital for broader coverage. The report highlights emerging risks, including climate-related challenges, and calls for targeted regulatory interventions to safeguard individuals and businesses.