Unveiling the Insurance Perception Gap : Challenges Faced by Working Malaysians
A recent study conducted by Zurich Malaysia has shed light on the insurance landscape in the country, revealing that one in three prime working-age Malaysians lacks insurance coverage. The study further highlighted that a significant number of respondents harbour a "poor" perception of insurance, leading them to neglect personal protection plans. These findings, derived from a survey commissioned in late 2021, offer valuable insights into the attitudes of Malaysians towards insurance and its place in their priorities.
Among the prime working-age respondents aged 25 to 40, a startling 30% disclosed having no form of personal protection. Even more concerning, 16% expressed no intention of allocating funds for insurance or takaful (Islamic insurance). This neglect of insurance underscores its relatively low standing on the priority list of many Malaysians.
The survey, titled "Impact of Pandemic on Protection," included 1,201 participants from across the nation. Among the respondents, the subset of working adults aged 25 to 40 constituted 41% (491 individuals) of the total sample size. These insights provide a valuable snapshot of the attitudes towards insurance among the working-age population.
The study revealed intriguing perceptions regarding insurance and takaful. While 21% of those surveyed believed that the insurance offered by their employers provided sufficient coverage, a surprising 14% stated they did not require insurance at all. Even more worrisome, 9% of respondents displayed a negative perception of insurance and takaful, making it challenging to persuade them to invest in financial protection products.
The study's findings underscore the need for greater awareness and education about insurance benefits among Malaysians. Bridging the perception gap is essential to help individuals understand the importance of personal protection and its role in safeguarding their financial well-being. By addressing misconceptions and highlighting the advantages of insurance and takaful, insurers and financial institutions can work to instill confidence and trust in potential customers.
Zurich Malaysia's study serves as a wake-up call, revealing the prevailing insurance perception gap among prime working-age Malaysians. The significant number of individuals without insurance coverage and the negative attitudes towards insurance underscore the challenges faced by the insurance industry. By proactively addressing these issues and promoting the benefits of personal protection, insurers can foster a financially secure society and empower Malaysians to prioritize their financial well-being. Increased awareness and education are vital steps towards bridging the perception gap and creating a more insurance-savvy population in Malaysia.