Page 6 - LIAM Annual Report 2020

4 ANNUAL REPORT 2020

All essential services continued uninterrupted. virtually, performing non-face-to-face selling during
Policyholders continued to receive their services the pandemic, and to submit their cases online.
either online, or assisted by Customer Service Centers,
as well as face-to-face (with safeguards on social LIAM has also implemented the use of the electronic
distancing). Policyholders were also able to perform Identification card system or e-ID, which means they
transactions online such as checking on the status of do not have to carry their physical cards anymore.
their policies, a facility which was introduced by the Potential customers would be able to verify agents
industry in 2017. online via the Customer Zone ‘Know Your Agent’
portal on the LIAM website.
In terms of the purchase of insurance products, direct
distribution channels via online purchase continued to The findings from the Benchmark Customer Service
be available since the introduction of online channels Indicators 2020 Report for Life Insurance which was
in 2018. Agents continued to sell and provide conducted with LIAM member companies, was very
advice to customers through virtual connections, encouraging. The report found that the average
which have become more popular and in demand turnaround time for the handling of customer
due to restrictions in face-to-face communication. complaints had been reduced by 2 days or 10% in
Indeed, the pandemic has hastened the adoption 2020 (17 days) as compared to 2019 (19 days). The
and acceptance of digitalization in delivering our average turnaround time for the settling of claims
products and services to our customers. from their intimation date also improved from 15 days
in 2019 to 12 days in 2020 and from the receiving of
The pandemic has also resulted in companies all required documents, from 5 days in 2019 to 4 days
becoming more explorative and innovative in in 2020.
enhancing their value propositions by developing
plans that suit the needs of their customers. A number In July 2020, the industry completed the Study Report
of insurers introduced new plans with low premiums on “Identifying and Quantifying the Healthcare
via the direct channel platform. Online products Cost Drivers in the Insured Healthcare Ecosystem in
available on respective insurers websites include Malaysia”. The report provided 12 recommendations
medical insurance and critical illness protection plans. to address the issues surrounding the increase of
medical costs which have been categorized into four
Apart from the online platform, insurance products are workstreams for implementation.
also accessible via alternative distribution channels
such as telco providers, banks, agents, direct walk-ins PROACTIVE MEASURES TO ASSIST
to branches and post offices.
POLICYHOLDERS IN TIMES OF NEED
During the year, due to the pandemic and demand During the year, LIAM with its 16 member companies
for alternative solutions, the industry, together with the came together in solidarity to implement various relief
Malaysian Insurance Institute (MII), introduced virtual measures which aimed at assisting policyholders who
examinations for agents in April 2020 to enable the were affected by the pandemic, and to ensure that
recruitment of new agents to continue. As of end they would be able to continue with their livelihoods.
2020, the number of registered agents with LIAM has
increased to 82,042 agents as compared to 75,999 Pandemic-related risks are generally not covered
agents in 2019. The number of new agents who joined under any insurance plans worldwide due to the
the industry in 2020 has also increased to 18,293, difficulty in pricing for such an unprecedented event,
compared to 15,110 in 2019. having incalculable impact and cost. Nevertheless,
in response to the nation’s immediate need in the
LIAM, together with its member companies, also early stages of the pandemic in 2020, the majority
introduced initiatives to help agents during the of life insurers provided supplementary benefits such
pandemic. Agents were given more flexibility - as daily hospital income to be paid to the affected
extension of time or reductions were given to policyholders holders.
fulfil their contract requirements. The Continuing
Professional Development (CPD) requirement was Various relief measures were also swiftly galvanised
also reduced from 30 CPD hours to 15 CPD hours for by the industry to help policyholders cope with the
2020. financial impact of the pandemic.

Agents have been given training to enhance their A RM8 million COVID-19 Test Fund was set up in March
skills and professionalism through the agents’ portal, 2020, as an urgent response by the industry in support
virtual trainings, virtual examinations, and so on. To of the Ministry of Health’s efforts in conducting more
enable agents to carry out their business, they were COVID-19 tests on Malaysians. LIAM contributed
also allowed to continue with their sales process RM5 million towards the fund which is open to

Life Insurance Association of Malaysia