Short-term pain for general insurance companies

LEE: Lee: Once the outcome of good and responsible driving behaviour is achieved, there will be an overall reduction in motor claims which will benefit insurance companies.

PETALING JAYA: The implementation of insurance discounts for drivers with spotless records will at first hurt general insurance companies in the short term, but lower claims will help to benefit the industry over the longer term.

The General Insurance Association of Malaysia (PIAM) chairman Antony Lee told StarBiz that the implementation of the system for motor insurance would initially reduce insurers’ gross earned premiums in the short term.