Malaysia Launch iMula

More than 40% of Malaysians remain uninsured, and the life insurance penetration rate stands at 58.6% as of 2023. Life Insurance Association of Malaysia (LIAM) claimed 48% of local respondents with dependents lack life insurance, 44% have no medical insurance, and 13% rely solely on company-issued medical cards.

iMula - The collaboration with Financial Education Network and Bank Negara Malaysia (BNM) has allowed LIAM to work closely with partners and affiliates under the network on various outreach programs and initiatives to promote financial literacy and encourage insurance ownership nationwide with Starter Pack Insurance Fund or i-Mula 50 today.

Insurance and takaful industry, in consultation with BNM, conducted a study to design tailored microinsurance products for the low-income market, including the B40 and M40 segments The study identified key risks, such as accidents, health issues, income loss, and bereavement, guiding insurers to develop affordable products that address these needs and promote inclusive growth.

LIAM launched i-Mula 50, an initiative designed to make life insurance more accessible and affordable for 100,000 eligible Malaysians. The RM5 million programme, established by Liam member companies, aims to support first-time buyers to purchase life insurance protection. Under i-Mula 50, 11 life insurance companies will offer 31 affordable protection plans, targeting youths and young families nationwide.

Malaysia’s current per capita policy ownership rate is about 58%. However, this figure does not consider individuals who hold multiple policies. The actual penetration rate falls to the low 40s. While this may not be low for a country like Malaysia, there is a significant potential for growth in this area.