In the insurance industry, it is essential to understand the customer’s needs and wants in order to provide them with the best service possible. This can be a challenge, especially when companies are operating in a new and unfamiliar market. Malaysia is one such market that has seen an influx of insurers in recent years, but how do these companies know what their customers want?
To answer this question, we must first understand the major pain points of Malaysian insurance customers. In this blog post, we will discuss some of the key issues that Malaysian insurance companies face as well as examine potential solutions for addressing them. Read on to learn more about how Malaysian insurers can better serve their customers!
The Malaysian Life Insurance Association
The Malaysian Life Insurance Association (MALIA) is the national trade association of life insurance companies in Malaysia. It was established in 1976 and currently has 24 member companies.
MALIA’s mission is to promote and enhance the development of a vibrant and sustainable life insurance industry in Malaysia. To achieve this, MALIA works with its members, regulators, government agencies, consumer groups and other stakeholders to:
– Promote public awareness of the importance of life insurance and its benefits;
– Encourage a positive understanding and perception of life insurance products and services;
– Facilitate the growth of the life insurance industry through capacity building and knowledge sharing;
– Enhance consumer protection by promoting best practices in product design and marketing, as well as policyholder servicing; and
– Advocate for an enabling environment for the development of the life insurance industry.
The Takaful Association of Malaysia
The Takaful Association of Malaysia (TAM) is the national body for the takaful industry in Malaysia. It is a non-profit organisation that represents the interests of its members, which include takaful operators, reinsurers, brokers and other service providers. TAM works to promote the development of the takaful industry in Malaysia and to ensure that it remains compliant with Shariah principles.
As at end September 2017, there were 18 takaful operators in Malaysia with a total of RM19.4 billion in gross contributions. The takaful industry has seen strong growth in recent years, with gross contributions increasing by an average of 16.6% per year over the last five years. This growth is expected to continue as more Malaysians become aware of the benefits of takaful and demand for its products increases.
TAM works closely with the regulators, Bank Negara Malaysia and the Malaysian Takaful Association, to ensure that the takaful industry remains stable and sustainable. It also provides input on Shariah matters relating to takaful products and services.
The Malaysian Insurance Companies’ Association
The Malaysian Insurance Companies’ Association (MICA) is the national trade association of the insurance industry in Malaysia. MICA was established in 1971 and has a membership of over 70 companies, including all major insurers operating in Malaysia.
MICA’s role is to promote and develop the insurance industry in Malaysia, and to represent the interests of its members. MICA works closely with the government and regulators on policy issues affecting the industry, and provides input on proposed legislation. It also organises seminars and conferences on topics of interest to the industry, and works with the media to raise awareness of insurance matters.
What do these organisations say?
There are a number of Malaysian insurance companies that have spoken out about the pains they are currently facing. These organisations cite a number of reasons for their struggles, including the fact that many Malaysians are unaware of the benefits of having insurance, the high cost of premiums, and the difficulty of getting claims approved.
Some of these insurers have even gone so far as to call for the government to provide more assistance in terms of education and regulation, in order to help improve the industry as a whole. It is clear that there are a number of serious problems facing Malaysian insurance companies at present, and it remains to be seen what can be done to address them.
Pains of the industry
There are a few Malaysian insurance companies that have been in the industry for quite some time now. They have seen the good and the bad times of the industry. Here are their thoughts on the current state of the industry:
1) The first pain point is the lack of product innovation. Most of the products that are currently offered by insurers are not very different from what was offered 10 or 20 years ago. There is a need for insurers to come up with new and innovative products that can address the changing needs of consumers.
2) Another pain point is the high cost of acquisition. It is becoming increasingly expensive for insurers to acquire new customers. This is due to the intense competition in the market as well as the rising costs of marketing and distribution.
3) Yet another pain point is the low level of customer retention. Insurers are finding it difficult to retain customers due to the many choices available to them. Once a customer has purchased a policy from one insurer, he or she can easily switch to another insurer if they find a better deal elsewhere.
4) The final pain point is regulatory changes. The insurance industry is constantly having to adapt to new regulations, which can be costly and time-consuming.
Solutions to the industry’s pains
The Malaysian insurance industry is in pain. The pain comes from many sources, including the high cost of medical care, the need for more transparency in the claims process, and the lengthy timeframes associated with getting claims paid.
There are solutions to these problems, however. By working with a reputable third-party administrator (TPA), insurance companies can get the claims transparency they need to make sound decisions about payouts. Additionally, TPAs can help streamline the claims process, getting money into policyholders’ hands faster.
Finally, TPAs can also negotiate on behalf of insurance companies to get lower prices from providers. This can help reduce the overall cost of care, making it more affordable for everyone involved.
If you’re an insurance company in Malaysia looking for relief from your pains, consider working with a TPA. They may just be able to provide the solutions you need.
Conclusion
In conclusion, the Malaysian insurance industry is facing a number of challenges and needs to step up its game in order to remain competitive. The industry’s main pain points include lack of consumer understanding, difficulty bringing in new customers, and slow customer service response times. By addressing these issues through innovation and improved customer experience initiatives, Malaysian insurers can stay ahead of the competition and build stronger relationships with their customers.
