Do Malaysians Really Trust Their Motor Insurance Companies?

Let’s be honest, many of us don’t even like the idea if discussing the topic of insurance. Not only does it not make the best subject for a conversation as you cannot escape discussing matters that involve accidents, repair cost, injuries and everything that is less than pleasant; at times it can also leave a bad taste in your mouth especially when speaking of cases where insurance providers have presumably cheated on their customers.

Has it really happened? Probably not to us personally, but it has happened to someone we know – a friend, or a friend’s friend. Or we may have read it in the newspapers how a customer is suing an insurance provider for refusing to pay the money owed to them. More often than not, we don’t take the time to understand these claims, but what remains permanently stuck in our head is that insurance companies cheat.

Although these cases do occur, albeit rarely, to the majority of us, the main question perhaps should be: “Are we truly happy with our insurance providers”. Maybe it is time that we try to understand how well our providers are serving us, instead of having our minds made up by the few who have had less than positive experiences with their insurance providers.

Perhaps we need to put in place a measurement tool that determines customers’ satisfaction towards their insurance companies. Perhaps with this measurement we as the consumers are able to make informed choices in choosing our insurance providers.

An award to recognize best providers

Well that is in fact the purpose of iBanding’s Motor Insurance Award. The Motor Insurance Award is an annual study to objectively determine the best motor insurance and takaful companies in Malaysia. Before giving out the awards to the best insurance and takaful companies, iBanding carries out a survey to find out the consumers’ satisfaction level and opinions about their motor insurance and takaful providers.

This is both important to the customers and the providers. The customers because the survey findings help them understand what others think about each insurance company. This will better equip them with the knowledge they need in making a wiser decision when choosing one for themselves. While it is important to the providers as this helps them improve as they get the insights into what customers look for in choosing a provider.

Below is a segment aired on Astro Awani’s Smart Money in January 2018 with iBanding’s co-founder Mr. Luke Roho. Luke spoke about the Motor Insurance Award and how it benefits both the consumers and providers.

Net Promoter Score as a tool to measure customer’s loyalty

So how do we really know how happy are the Malaysian motor insurance customers with their insurance providers? One way is by looking at the Net promoter score used by iBanding. Below is the definition of the NPS by Medallia:

An index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others. It is used as a proxy for gauging the customer’s overall satisfaction with a company’s product or service and the customer’s loyalty to the brand.

The ranking of motor insurance and takaful companies based on the response from actual customers offers insights into how satisfied they are with their providers. For 2016, Syarikat Takaful Malaysia and Allianz Insurance have emerged as Malaysia’s favorites for each of its respective categories.

Click here for the full ranking of insurance companies and takaful providers from the 2016 findings.

How the survey findings can help the Malaysian customer – Past and present (preliminary) findings

Distribution channel: In 2016, it was found that more customers have opted to purchase their insurance directly (online) compared to 2015. This trend is expected to continue as more and more insurance and takaful companies are introducing their own online web or mobile platforms to allow the public to make easy purchase without having to walk in to a branch. But perhaps what’s more appealing to the customer is the omission of the extra 10% agent commission fee when they purchase their insurance this way (online). Translation: Immediate 10% savings when customers purchase online.

That personal touch: Past survey result shows that customers who purchased their motor insurance through a “person” such as an agent or representative at an insurance branch are happier than those who purchased online. This could be largely due to the fact that any claims that arise later can be dealt with easier having someone knowledgeable to help with the process.

Service level: Price was one of the most important determining factors for customers when choosing a certain company. However from the findings we found that the main factor for customers to recommend their insurance provider was service level. This factor is especially critical during a claim. The average customers are not very insurance-savvy and an insurance providers extent and willingness to offer their services during a claim is of utmost importance.

Price comparison: From the preliminary findings of the current survey, 50% of participants are comparing premium prices before making their decision. This is a big jump from 2016’s 30%. With detariffication of motor insurance going live in July 2017 where motor insurance premium is no longer the same across all providers, comparing prices can mean a potential saving especially to the more cost conscious buyers.

The Motor Insurance Award 2018

The survey that began in November 2017 came to a close on 31st January 2018. iBanding will soon be announcing the top insurance and takaful companies based on the opinions of the Malaysian public.

With such effort in place, iBanding hopes to offer the Malaysian consumer with a clear and transparent insight on the local motor insurance industry, furthering its mission in providing education and awareness about insurance to the public.

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