More Malaysian customers satisfied with the general insurance industry – Survey

Faster digitalisation and operational efficiency amidst the pandemic influenced this sentiment.

More Malaysian’s grew confident in the general insurance sector of the country, based on the Customer Satisfaction Index (CSI) score, rising from 78 points in 2018 to 84 points in 2022, reported the Customer Satisfaction Survey 2022 (CSS 2022). According to NielsenIQ benchmarks, a CSI score above 80 points is considered commendable.

Accelerated digitization and operational efficiency during the pandemic. A decrease in claims during the pandemic contributed to enhanced customer claims experience. PIAM General Insurers demonstrated resilience and CSR initiatives, supporting policyholders during challenging times.

Persatuan Insurans Am Malaysia (PIAM), Malaysian Takaful Association (MTA), and Life Insurance Association of Malaysia (LIAM), in collaboration with Bank Negara Malaysia (BNM), have disclosed the outcomes of the survey.

The general insurance sector demonstrated positive trends despite pandemic challenges, with the CSI score rising from 78 points in 2018 to 84 points in 2022. All four CSC pillars (Accessibility, Product Suitability, Service Efficiency, and Claims Transparency) showed substantial improvements in customer satisfaction. Online access saw a significant improvement due to increased digital investments and consumer adoption during the pandemic.

Nearly eight out of 10 of general insurance customers expressed positive sentiments about their insurance experiences. Areas for improvement include responsiveness and claims processing speed.

The general insurance industry's NPS increased from -9 points in 2018 to a robust +14 points in 2022, indicating increased satisfaction and positive word-of-mouth. Younger customers (18-30 years old), the middle-income group (M40), and those in the Eastern region exhibited higher NPS scores.

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The inaugural survey on Small Medium Enterprises (SME) involving 211 SME customers revealed high satisfaction across the CSC pillars with an NPS score of +14. Key areas for improvement in SMEs include claim transparency.

Survey results highlighted the need to increase awareness of the CSC among customers, addressing the decline in awareness levels. Key drivers of customer satisfaction include secure handling of personal data and privacy, prompt call centre service, knowledgeable employees, and timely query resolution.

The CSS, revised in January 2018, focuses on four pillars: (1) Insurance Accessibility through Improved Engagement and Services, (2) Building Trust by Understanding the Customer, (3) Providing Timely, Transparent, and Excellent Service to Meet Customer Satisfaction, and (4) Ensuring a Fair, Timely, and Transparent Claims Settlement Process for Peace of Mind.

Conducted by NielsenIQ Malaysia, the survey assessed customer experiences and the impact of the pandemic on the quality of customer services within the insurance and takaful industry. The CSS 2022 aimed to evaluate customer engagement, adherence to the CSC, trust levels, and satisfaction with products and services. In total, 4,043 customers participated, including 19 general insurance operators.