KUALA LUMPUR: Future growth for the life insurance sector remains promising as the percentage of Malaysians with life insurance or takaful plans is still low at 54%, said Life Insurance Association of Malaysia president Toi See Jong.
The sum assured of the life insurance industry in Malaysia amounted to RM1.38 tril in 2017, a 6% increase from the previous year.
According to LIAM, 12.6 million life insurance policies were issued in 2017, which was slightly higher than in 2016.
"The healthy performance of the life insurance industry reflects the continued increase in awareness among Malaysians on the importance of insurance protection," LIAM said in a press statement on Wednesday.
Although the per capita sum assured increased from RM41,055 to RM42,992 over the course of the year, LIAM said it is still below the amount needed to support one family member in the event of the death or disability of the breadwinner.
"Based on 2012 Underinsurance Study in Malaysia undertaken by University Kebangsaan Malaysia and LIAM in 2013, the average mortality gap for each member of a family is about RM100,000 to RM150,000, " it said.
Given that only 34 out of 100 Malaysians were insured, Bank Negara Malaysia together with LIAM, the Malaysian Takaful Association and Persatuan Insurans Am Malaysia have launched an affordable insurance scheme with the criteria of being affordable, accessible and simple.
Toi said several developments have made to offer better distribution channels to make insurance purchases easier.
He added that there is a more comprehensive customer service charter to introduce minimum industry standards for turnover times, as well as the introduction of a Balanced Scorecard for agents which will effect agents' remunerations based on their conduct and service.