Current floodings have raised questions on insurance coverage safety in Malaysia.
Allianz Common Insurance coverage Firm (Malaysia) Berhad stated that particular perils insurance coverage shot up by 22% or 15,000 out of 68,000 prospects (new and renewals) between 1 to 17 January 2022 alone.
In keeping with Allianz Common, latest floods within the nation have uncovered shortcomings in the direction of catastrophe response and concrete planning and have raised questions on insurance coverage safety and whether or not Malaysians are underserved.
At the moment, insurance coverage for houses or autos might be bought straight from the insurance coverage supplier (over-the-counter or on-line), via intermediaries corresponding to brokers, or by way of platforms like Pos Malaysia, on-line insurance coverage marketplaces, or insurtech startups.
“In Malaysia, we’ve got choices on the subject of insurance coverage merchandise and the way we buy insurance coverage. So, it’s not a query about being underserved. Nonetheless, we’re responsible of selecting to forgo flood cowl (residence insurance coverage), windscreen and even particular perils cowl (safety in opposition to landslide, flood, and different convulsions of nature) when shopping for automotive insurance coverage, all in favour of a less expensive coverage. That is what leaves Malaysians grossly underinsured,” stated Sean Wang, CEO of Allianz Common.
In keeping with Allianz Common’s numbers, solely 11% or 123,000 out of 1.11 million prospects selected particular perils cowl as a part of their personal automotive complete cowl in 2021. This shot up by 22% following the floods final yr.
“The latest floods vividly verify that insurance coverage is a necessity – particularly when we’ve got property that we have to defend. There’s a want to interrupt the vicious cycle of economising our insurance coverage coverage. Both that, or we danger persevering with to be underinsured and shortchanging ourselves within the course of,” Wang added.