Saturday, January 20, 2018

Insurance, takaful remain unpopular in Malaysia

The central bank of Malaysia said insurance and takaful products remain unattractive to many citizens because of their complexity and high costs.

With this, Bank Negara Malaysia governor Muhammad Ibrahim urged the industry to focus on the underserved segment of the market to allow them to be covered by at least one type of insurance.

In Malaysia, insurance penetration remains low at 56%, he said.

The figure pales in comparison with those in developed economies, where the rate is more than 100%, meaning one person owns more than one type of insurance.

Ibrahim shared that the government intends to improve the rate to 75% by 2020.

However, he said that the ultimate goal is to reach beyond the 100% mark.

Ibrahim made the remarks on the sidelines of the 7th Malaysian Insurance Summit on Monday.

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