Malaysia general insurance logs growth in customer satisfaction

Sector displayed positive trends despite challenges relating to the pandemic

Malaysia general insurance logs growth in customer satisfaction

Insurance News

By Kenneth Araullo

The Persatuan Insurans Am Malaysia (PIAM), Malaysian Takaful Association (MTA), and Life Insurance Association of Malaysia (LIAM), in partnership with Bank Negara Malaysia (BNM), have released the Customer Satisfaction Survey 2022 (CSS 2022) results.

The survey indicates an improvement in the Customer Satisfaction Index (CSI) for the general insurance industry, rising from 78 points in 2018 to 84 points in 2022. A CSI score above 80 is deemed favourable, according to NielsenIQ’s internal benchmarks.

The Customer Service Charter (CSC), initiated in 2011, aims to enhance insurers' commitment to providing efficient and high-quality service. The CSC was revised in January 2018, focusing on four pillars: improved insurance accessibility, building customer trust, providing timely and excellent service, and ensuring fair claims settlement.

Conducted by NielsenIQ Malaysia, CSS 2022 sought to assess the pandemic's impact on customer service quality in the insurance and takaful industry. The survey, which involved 4,043 customers and 19 general insurance operators, evaluated aspects like customer engagement, service delivery, trust, and satisfaction with products and services.

Key findings from the customer satisfaction survey

The general insurance sector displayed positive trends despite pandemic-related challenges. The CSI score increased notably, and improvements were seen across all four CSC pillars, particularly in Accessibility, Product Suitability, Service Efficiency, and Claims Transparency. The enhanced accessibility reflects the sector's effective digital engagement with customers.

Approximately 76% of general insurance customers expressed positive sentiments about their insurance experiences, though there were concerns about response times and claims processing speeds.

The general insurance industry’s NPS improved significantly, from -9 in 2018 to +14 in 2022. Younger customers, middle-income groups, and those in the Eastern region showed higher NPS scores.

The first survey involving 211 SME customers from 7 insurance and takaful operators showed high satisfaction levels, with a +14 NPS score. The survey identified claim transparency as an area needing improvement.

The survey found that the pandemic accelerated the use of digital platforms, improving customer onboarding and claims processes. A decrease in claims also contributed to better customer experiences.

Members of PIAM also demonstrated commitment by offering premium deferments, discounts, and flexibility during challenging times. Initiatives like the Flood Relief Fund and participation in the Perlindungan Tenang Vouchers (PTV) initiative highlighted their social responsibility.

Awareness of the Customer Service Charter (CSC) also emerged as a critical factor. The industry plans to increase CSC awareness, redefine the role of agents, invest in satisfaction drivers, refine claims processes, and deploy digital solutions to align with customer preferences, focusing on advancing technology and innovation for enhanced customer experiences.

“In challenging times, the insurance industry has shown resilience and a commitment to our policyholders. The CSS 2022 results reflect our efforts to prioritise customer satisfaction and well-being. The decrease in claims, along with innovative relief measures, demonstrates our dedication to serving the community,” PIAM chairman Antony Lee said.

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