Data, digital transformation and cost-effective distribution are key to closing Malaysia’s protection gap and making insurance more affordable, accessible and understandable

The strongest motivations for sharing data are more personalized services and an enhanced claims process

KUALA LUMPUR, Malaysia--(BUSINESS WIRE)--The vast majority of consumers (92%) polled in Capco’s 2023 Malaysian survey of insurance policyholders will consider sharing additional personal data with insurers to gain a range of benefits. This and other findings highlight a clear opportunity to leverage data and analytics to drive innovation around customers’ needs – and to help close Malaysia’s protection gap among the underinsured and uninsured.

Capco’s survey also reveals positive customer sentiment towards more personalized insurance. Across a range of insurance policy types, from income protection to car insurance, at least seven in 10 policyholders say they ‘strongly want’ or ‘would prefer’ more personalized products.

Almost three-quarters of the 1,000 policyholders Capco surveyed (72%) prefer to purchase insurance through representatives, highlighting the importance for many incumbent insurers of building seamless omnichannel experiences that retain the personal touch. When they purchase insurance products, Malaysian policyholders say their key decision factors are affordable premiums (46%), followed by the ability of the insurance offer to meet the customer’s needs (38%), and value for money (37%). When choosing an insurance provider, speed of services is the top priority (51%), followed by the insurer’s reputation (43%).

Lance Levy, CEO of Capco, said: “Over the next few years, Malaysia’s incumbent insurers and takaful providers, joined by new digital insurance and takaful operators (DITOs), will be seeking a competitive edge by focusing on being more responsive to customer needs. Another priority will be narrowing the protection gap that continues to put too many Malaysian individuals and families at risk. Malaysia’s insurers can leverage their customers’ willingness to share data to offer them innovative, tailored services. The challenge will be mastering how this data can be rapidly deployed to improve and personalize products that better align with customer lifestyles, priorities and budgets.”

Darren Pigg, Partner and APAC Insurance Lead at Capco, said: “Insurers must overcome legacy constraints to create and maintain a 360-degree view of their customers across omnichannel user experiences, supported by automated and integrated processes. They will require best-in-class data architectures and improved data governance to preserve customer trust while leveraging fast-evolving analytical and AI tools, including the likes of ChatGPT. Insurers that achieve these goals will be able to better meet policyholder needs via innovative, customer-centric products distributed more cost-effectively across multiple channels.”

Capco’s survey polled a representative sample of Malaysian policyholders between the ages of 18 and 65 years to capture consumer attitudes to insurance and insurers, including preferred purchasing channels, decision drivers, their views on the claims process and insurance apps, and their appetite for personalization and sharing personal data. The associated report recommends paths forward for insurers looking to capitalize upon the opportunities that flow from the positive attitudes towards data sharing our survey captures, including differentiated customer experiences, more tailored products and enhanced cross-selling. Other key findings in the report include:

Over half of respondents say they would be motivated to share additional personal data by gaining more personalized services (56%) and enhancing the claims process (52%).

• Other motivations include improving the authentication process (50%) and being offered cheaper premiums (43%).

Respondents willing to share data with insurers prefer to do so via fitness or health tests (51%), smart watch or wireless wearables (41%), and smart devices in the home (40%).

• Fewer respondents are inclined to share data via a black box in their vehicle (24%), or to share social media data (21%).

Insurance apps are used for a wide range of tasks, from monitoring policies (89% of app users) to accessing recommendations on improving lifestyles (67%).

• Other popular uses include updating personal information (86%) and learning about new products (78%).

When making an insurance claim, respondents are most inclined to do so in person (49%), online (37%) or by phone (34%).

• Apps were a less popular claims channel (26%) and postal mail is the least preferred route (11%).

Among respondents who have made a claim, a large majority (91%) are satisfied with the process, with 36% saying they are ‘highly satisfied’.

• Claimants who were ‘less than satisfied’ (9%) mainly identify slow payouts, slow insurer responses and too much paperwork as the key problems.

Capco’s 2023 Malaysia insurance survey can be downloaded here. A number of other national market reports are also available and more will be published in the coming weeks. Capco’s latest global insurance survey was conducted during February and March 2023 and collected responses from 13,750 policyholders aged 18 to 65 years across Malaysia, Singapore, Thailand, Hong Kong, Greater Bay Area (ex Hong Kong), the UK, Switzerland, Germany, Belgium, Poland, Italy, the US, Canada, and Brazil.

About Capco

Capco, a Wipro company, is a global technology and management consultancy specializing in driving digital transformation in the financial services industry. Capco operates at the intersection of business and technology by combining innovative thinking with unrivalled industry knowledge to fast-track digital initiatives for banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco’s cutting-edge ingenuity is brought to life through its award-winning Be Yourself At Work culture and diverse talent. To learn more, visit www.capco.com or follow us on LinkedIn, Instagram, Facebook, and YouTube.

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Tim Steele // [email protected]