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.
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
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.
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.