Revolutionising financial inclusion through Digital Insurance and Takaful
Promoting inclusive insurance in Malaysia
Significant insurance protection gaps continue to exist in Malaysia among the more vulnerable groups, exacerbated by challenges from the recent pandemic. Innately, the uninsured and underinsured communities and smaller businesses are the most susceptible to external shocks. Compounded by other disruptions like climate-related disasters, this has prompted the need to reassess insurance and its role in promoting financial inclusion in our society and economy.
'Revolutionising financial inclusion through Digital Insurance and Takaful' shares key findings from a recent nationwide survey by PwC Malaysia in February 2023 to assess the current insurance and takaful landscape in the country. Sentiments from respondents, both individuals, and micro, small and medium (SME) enterprises were revealing.
This PwC publication also highlights the important role played by Bank Negara Malaysia (BNM) in supporting increased insurance penetration amongst the underserved through the development of the upcoming Digital Insurers and Takaful Operators (DITO) licensing framework in 2023.
84%
of the uninsured population are between 18 to 34 years old
Top 3
areas which the uninsured look for in digital insurance and takaful; real-time updates, claims processing automation and easy access to provider's platform
60%
of surveyed MSMEs cited increasing business vulnerability as the main motivator to purchase insurance and takaful
What is the role of Digital Insurers and Takaful Operators (DITO) in Malaysia?
Increasing access and affordability to insurance
DITOs and InsurTechs have the potential to bridge the financial inclusion gap by providing agile, affordable and customised on-demand solutions to protect the vulnerable and enhance their financial resilience
Groundbreaking, tech-enabled innovations in insurance solutions
Insurers will need to embrace and adapt to emerging technologies in insurance to address the needs of customers today and tomorrow
Promoting competition and greater efficiency
DITOs are anticipated to foster competition in the insurance market by introducing diverse product innovations and providing superior customer experience, through greater efficiency and transparency
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