7 in 10 Malaysians buy insurance online amidst ease of access

Nearly four in five car insurance customers said they used SPayLater.

Nearly seven in 10 insurance customers are now using digital platforms to access and purchase policies, according to ShopeePay.

A survey by ShopeePay found that 69% of motor insurance customers and 46% of travel insurance customers use digital channels to get information and complete purchases. 

Overall, 88% of insurance buyers said they feel confident buying coverage digitally.

The findings come as Malaysia’s digital insurance market is expected to grow significantly. Estimates from Ernst & Young suggest the market could reach RM78b by 2030.

However, around 10.2 million people remain underserved due to affordability issues and the complexity of insurance products.

In the survey, 56% of respondents said they choose digital platforms because the process is faster, simpler, and more affordable than traditional channels.

The survey found that 78% of personal accident insurance customers had not previously held such coverage before buying a policy through MoneeInsure Agency on the ShopeePay app. 

Around 67% said they would not have bought personal accident insurance if they had not encountered it online.

Access to insurance remains uneven in parts of the country. About 40% of insurance customers live outside urban areas, where reaching insurance agents may be more difficult. 

Amongst personal accident policyholders surveyed, 16% said they had difficulty contacting an agent offline, suggesting digital platforms are helping bridge access gaps.

Flexible payment options are also contributing to adoption. 

Nearly four in five car insurance customers said they used SPayLater, a buy-now-pay-later service, to pay for premiums. Almost half of those users chose to split payments into a 12-month instalment plan.

The survey indicates that digital channels are playing a larger role in expanding insurance access by reducing geographic and cost barriers, particularly for first-time buyers and customers outside major cities.