Many Malaysians care little about insurance coverage
Published on: Wednesday, October 19, 2022
By: Bernama
While insurance coverage is essential, many Malaysians still consider it unnecessary.
Kuala Lumpur: Insurance still features lowly on the list of priorities for many Malaysians.
A study by Zurich Malaysia, an insurance and takaful provider, shows that a third of those aged 25 to 40, who are in their prime and therefore most productive, do not have any form of personal protection.
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It attributed the inadequacy to misconception as well as the lack of information and understanding of insurance.
It said 21% of those surveyed felt that the insurance coverage provided by their employer was sufficient, while 14% thought it was not necessary.
“Another 9% have poor perception of insurance and takaful, making it difficult to convince them to invest for their future,” Zurich Malaysia said in a statement today.
It said the study also showed that 22% of the respondents indicated they still do not have enough information on insurance and takaful despite the numerous initiatives by insurers and takaful operators.
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“Although not necessarily the cause, this could have contributed to a lack of understanding (for 18% of the respondents) of the purpose and benefit of insurance and takaful,” it said.
It said the findings highlighted the important role that life insurance agents and takaful advisers played in ensuring understanding among the public.
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“This is critical to increasing the insurance and takaful penetration rate and reducing the protection gap towards a sustainable way of life,” it added.
The study, commissioned in late 2021 to determine the impact of the Covid-19 pandemic on insurance protection, involved 1,201 respondents nationwide.
The group comprising 25 to 40-year-old working adults made up 41% (491 respondents) of the total sample size, and 30% of this group stated that they do not have protection.
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