According to a recent survey, consumers in Malaysia want competitive pricing, guaranteed claims approval and best turnaround time for the approval of their claims following the introduction of motor insurance liberalisation from July 1.

The survey, a joint effort by AIG Malaysia and automotive website paultan.org, polled some 4,400 respondents who were aged above 18. The results showed that 89% of them want competitive pricing for their motor insurance purchase.

Besides competitive pricing, 70% want guaranteed claims approval within three business days for motor insurance claims below RM5,000. Some 60% also preferred a settlement within 60 days for vehicle claims where recovery is unsuccessful.

Additionally, 64% of respondents wanted discounts and rewards for being loyal customers, while 55% opted for flexibility to customise their motor insurance plans.

Prior to making a decision to purchase motor insurance, 86% said they would research what insurers would offer, while 16% would go for insurers with the most advanced technologies and innovation. Another 69% would choose insurers that reward good driving behavior, and 39% said they would go for insurance companies with the best reputation.

The survey also found that 42% of respondents were aware that motor insurance in Malaysia was imposed with a tariff, while a whopping 83% think motor insurance liberalisation will have an impact on their motor insurance renewal.

On the modality of motor insurance purchase, the survey found that 24% preferred to purchase their motor insurance online, while 6% favoured more traditional channels, including dealing with an agent or visiting insurance branches.

According to AIG Malaysia’s CEO Antony Lee, who is also the General Insurance Association of Malaysia (PIAM) chairman, the survey offered a clearer picture of customers’ expectations and knowledge about motor insurance.

“The impending liberalisation of the motor insurance market will bring new opportunities and challenges. It will be an incredibly open and competitive marketplace, where customers can shop around for the best deals, an attractive motor insurance premium, or the best insurance coverage for their prized cars. Insurers will need to highlight their unique strengths such as their claims capabilities to stay ahead of the curve,” he said.

On July 1, the second phase of the motor insurance liberalisation announced by Bank Negara Malaysia is set to begin, and premium rates for comprehensive motor insurance will be determined by individual insurers and Takaful operators based on a risk-based assessment system.