38% of Malaysians still lack personal cover: survey

This is despite an increase in awareness of the need to have insurance protection to 84%.

The pandemic has increased the awareness of Malaysians to the need of insurance protection to 84% however this does not translate to action as 38% of Malaysians still do not have personal insurance protection according to Zurich Malaysia.

In the Impact of Pandemic on Protection survey commissioned by Zurich Malaysia, the main reason that Malaysians do not have protection is affordability. Of the 1,201 respondents, 62% said that the pandemic has affected their ability to afford insurance or takaful. Worryingly, about 23% or almost one in every four Malaysians cannot afford personal protection.

Around 72% of Malaysians are willing to set aside up to RM200 a month for protection, if they can afford it. 

The survey also found out that lack of understanding about insurance and takaful is still prevalent in Malaysia. 29% of respondents who do not have insurance or takaful protection attributed it to not having enough information. Lack of understanding such as thinking they do not need protection (23%) and negative perception of the industry (10%) are other reasons cited.

Meanwhile, 12% of Malaysians who do not own any personal protection relies on their employers to provide for them.

Zurich Malaysia conducted a survey in late September 2021 amongst Malaysians from all states, with the majority of the respondents in the 18 to 34 age group (64%) – the prime years to start planning for protection for a brighter future.