LIAM has commissioned Universiti Kebangsaan Malaysia to study the “Protection Gap in Malaysia” in 2013 as part of the industry’s effort to fulfil the Government’s aspiration of ensuring that 75% of the population is insured.
The Study uncovered that Malaysian households are substantially underinsured. The average protection gap for families (2 adults and 3 children) whose primary wage earner has both life and medical insurance was RM553,000 per family. Families whose primary wage earner was covered by a life policy only and not a medical policy had a slightly higher gap, at RM642,000 per family. The average protection gap for the group headed by a breadwinner who was not covered by either life or medical insurance was largest, at about RM723,000 per family. The results of this study also indicated the need for insurers to develop low premium products that have a wide reach to consumers at large.
Click the report to find out more on the key findings of this Study.