Malaysia’s insurance and takaful sector has shown steady improvement in service quality, with the Customer Satisfaction Index reaching a record 88 points in 2024. This marks the highest score since the survey began, reflecting consistent progress from 80 points in 2018, through 85 in 2022, to the current level.

Industry-Wide Improvements Highlighted

The latest results, released jointly by the Life Insurance Association of Malaysia (LIAM), Malaysian Takaful Association (MTA), and General Insurance Association of Malaysia (PIAM), demonstrate a broad-based improvement. Among 48 insurers and takaful providers surveyed, 37 showed higher satisfaction scores while the rest maintained their performance.

LIAM Chief Executive Officer Mark O’Dell noted the improvements stem from efforts across the industry, from agents to service teams, aiming to enhance customer experience and build trust. PIAM Chief Executive Officer Chua Kim Soon echoed this sentiment, highlighting stronger digital engagement and claims transparency as key areas of focus.

Persistent Challenges For Vulnerable Groups

Despite the gains, the survey identified ongoing challenges for vulnerable Malaysians. Around 43% of customers fall into the vulnerable category due to limited financial literacy, low savings, or high debt. These groups, along with older adults, lower-income households, and residents in East Malaysia, continue to face barriers in accessing insurance and takaful products, especially through digital channels.

The industry is working with the Financial Education Network to improve financial literacy nationwide, aiming to make protection more accessible and inclusive.

Rising Premiums Add Pressure 

While customer satisfaction has improved, many Malaysians still face financial strain due to rising insurance costs. Our recent survey revealed that one in five insured Malaysians has had to reduce or cancel coverage in the past year due to premium increases. Lower-income individuals are the most affected, with over a quarter of those earning below RM5,000 monthly making changes to their protection plans.

These findings underline the continuing need for affordable insurance options and greater financial education to help Malaysians make informed coverage decisions amid growing financial pressures. It’s great that customer satisfaction has increased, it’s not great that more Malaysians simply cannot afford the price of insurance in the first place. 

Outlook For The Industry

The insurance and takaful sector remains committed to enhancing service quality and expanding digital adoption while addressing affordability and access challenges. As the industry modernises, ensuring that no group is left behind will be critical to delivering inclusive financial protection for all Malaysians.

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• Insurance
• Takaful