Education To Grow Life Insurance

A lot more can be done to educate the public about the benefits of having life insurance, said Life Insurance Association of Malaysia (LIAM) Chief Executive Officer Vincent Kwo Shih Kang. 
He said the penetration rate in the life insurance industry currently stood at 43% despite the Government having a target of 75% by 2020.

“We feel we have to be more proactive as the penetration rate is still low. We have less than 10 years to go from 43% to 75%,” Kwo said during LIAM's official visit to The Star recently.

Vincent Kwo

“Our business is not so much in protection alone. In fact, a majority of our business is in savings. As the middle-class population increases, people are more receptive to the concept of saving through insurance. Therefore, we need to promote understanding and awareness of this industry,” he said.

He opines that many Malaysians still do not save enough for their children's education, retirement, medical coverage and family protection.

He admits that education is, in a way, a challenge due to the broadness of the market.

Kwo said the life insurance industry always achieved double-digit growth annually.

“We are projecting 10% to 12% growth this year. Life insurance is recession-proof. Whether the market is good or bad, people will still need to protect themselves and their families from any ill-bearing circumstances.”