BNM to introduce affordable insurance scheme next month


Current insurance products are too complex and unaffordable to many Malaysians

KUALA LUMPUR: Bank Negara Malaysia governor Tan Sri Muhammad Ibrahim said the current insurance products are too complex and unaffordable to many Malaysians.

"From the perspective of the population that remain underserved, the existing business models are essentially broken," he said.

He pointed out that the industry is increasingly concentrated on a narrow insurance segment. 

"If we eliminate double-counting, only 35% of adults have some form of coverage," Muhammad said during his keynote address at the Malaysian Insurance Summit 2017 on Monday.

In addition, he said that the purchasing and claiming processes are fraught "with anxiety and headache".

To address the issue of unaffordable insurance products, Muhammad said the central bank is partnering with the industry to roll out Perlindungan Tenang, a national branding and communication platform next month in Kuching. 

"Perlindungan Tenang is intended to reach 8 million working-age Malaysians and over 700,000 micro enterprises that currently need insurance and takaful protection against key risks," he said.

By 2020, he hoped that about 75% of the population would have some sort of insurance coverage.
 
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Perlindungan Tenang

   

Next In Business News

Wall Street opens lower as rally in growth stocks falters
Axiata’s tower arm edotco weighing US$700mil financing, sources say
MYAirline to operate as LCC, not ULCC
MUI sells 5.57% stake in PMC for RM6.45mil
Wiki Impact report: Bursa top 20 companies donated RM159.69mil in cash in 2021
FMM: Implementation of CPTPP is timely for Malaysian businesses to recover
Ringgit strengthens against US dollar at the close
Ancom Nylex completes acquisition of 25% stake in Ancom-Chemquest Terminals
RHB Bank Cambodia aims to become SME bank of choice by 2024
Bursa Malaysia ends higher for third consecutive day on Wall St rally

Others Also Read