KUALA LUMPUR: The electric vehicle (EV) insurance segment remains profitable for Allianz Malaysia Bhd
, with premium increases expected to remain manageable despite challenges seen in more mature EV markets overseas.
Premiums to insure EV vehicles are rising in some country markets globally due to expensive parts replacement and lower chances for repairs when claims are made.
Allianz Malaysia’s chief executive officer (CEO) Sean Wang said Malaysia’s EV market continues to exhibit favourable risk characteristics, partly because EVs are often purchased as second or third vehicles and are used less intensively than in other countries.
“EV in Malaysia is a very unique market and it is still a very profitable segment for us,” he told reporters at Allianz Malaysia’s post-AGM press briefing yesterday.
Wang noted while EV insurance markets in countries such as China and the United Kingdom have experienced sharp swings in profitability due to high cost of repairs and replacement parts, the situation in Malaysia remains stable.
“Over here it’s still okay. The quality of the business has been quite okay,” he said.
Allianz is the largest general insurer in Malaysia.
Beyond its insurance portfolio, Allianz is increasingly embracing artificial intelligence (AI) across its operations, although management stressed that the technology is intended to enhance rather than replace its workforce.
Wang said Allianz does not view AI adoption purely through the lens of labour cost reduction, but as a productivity tool that allows employees to handle larger workloads and respond more quickly to customers and agents.
“We cannot ignore that there are tools that are available out there and there are things that AI can do more consistently,” he said.
According to Wang, AI will be deployed to automate repetitive and error-prone processes while employees are encouraged to upskill and focus more on higher-value tasks.
Allianz Life Insurance Malaysia Bhd CEO Giulio Slavich said the insurer is already actively implementing AI in areas such as claims processing to accelerate approvals and improve accuracy.
“What is not really told loudly now is that AI is actually allowing us to have a more human insurance experience,” he said, adding that automation enables staff to spend more time engaging directly with customers and delivering more personalised services.
On healthcare insurance, Slavich expressed confidence over the upcoming Basic Medical and Health Insurance/Takaful (Base MHIT) product framework, noting it as an opportunity to serve previously uninsured or underinsured Malaysians.
He said more than one-third of healthcare expenditure in Malaysia is still paid directly by consumers, which could expose households to financial stress during medical emergencies.
“The new base product is actually an opportunity to get these customers on board with a proper health insurance coverage,” he said.
Slavich added customer acceptance of co-payment features has improved, with surveys showing policyholders increasingly recognising the need for such measures to manage healthcare inflation.
He also highlighted stronger engagement among insurers, hospitals and patients in addressing rising medical costs.
Moving forward, Allianz Malaysia remains cautiously optimistic about growth prospects.
Wang said the general insurance industry typically grows broadly in line with gross domestic product (GDP), and with regulators projecting Malaysia’s economy to expand by around 4% to 5%, the insurer expects industry growth to remain healthy.
“For Allianz, I think we always usually do slightly better than the GDP,” he said.
Nevertheless, Wang acknowledged the ongoing geopolitical tensions due to wars and rumours of further flare ups which continue to pose risks to certain insurance segments, particularly the marine cargo, aviation and offshore-related businesses.
He said inflationary pressures arising from supply chain disruptions could still affect claims costs.
