The Life Insurance Association of Malaysia (Liam) is urging insurance companies to sell their products via online platforms to drive the penetration rate to 75 per cent in 2020 from the current 56 per cent. Liam president Toi See Jong expressed hope that the companies could establish their own platform by Jan 1, 2017.
"We only have four years left and the gap between the rates is still big. Broadening the life insurance policy channels would allow various insurance segments to come in and increase the penetration rate as required," he told Bernama after opening a seminar jointly organised by Lian and the Foundation for the Advancement of Life & Insurance here Wednesday.
He said online platforms, being straightforward and secure, allow consumers of all ages to make comparisons and choose a competitive insurance policy.
Malaysia has only a small number of online providers of life insurance products, he noted, adding Liam would continue to work closely with Bank Negara to achieve the target penetration rate.
He suggested that people with low incomes could first buy a simple insurance product such as a personal accident policy for less than RM10 per month.
On prospects, Toi said the life insurance industry is expected to sustain its single-digit growth rate throughout the year driven by demand as well as increased awareness of the importance of protection
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