Source: PIAM, 25 June 2021
All member companies of Persatuan Insurans Am Malaysia (PIAM) and Malaysian Takaful Association (MTA) would like to assure consumers that the industry places great importance on overall customer experience which would inevitably include efficient complaints handling.
Consumer complaints are “opportunities” for the industry to improve products and services
Complaints received, particularly on Motor Insurance/Takaful being the largest industry sector, are vital for the industry to understand issues consumers are facing for improvement purposes. This will help our member companies in achieving greater customer satisfaction which is essential in building customer loyalty, retention and advocacy.
Over the years, the industry has continuously taken steps to ensure that customer centricity features prominently at every touch point from Motor policy/certificate inception to claims servicing. This is to ensure that the industry’s objective of meeting and increasingly exceeding customers’ expectations is met.
Customer complaints reducing the past 5 years
Statistics facilitated by Bank Negara Malaysia (BNM) and the Ombudsman for Financial Services (OFS) both show that despite increasing numbers of Motor policies/certificates issued, the number of complaints and disputes on Motor policies/certificates have been declining over the past 5 years i.e., from 2,159 complaint cases to 1,025 (reported to BNM1) and 446 dispute cases to 147 (lodged with OFS2). Taken in context, the total number of complaints and disputes represented less than 0.006% and 0.001% respectively of the total 18 million motor policies/certificates issued in 2020. In other words, for every million Motor policies/certificates issued, fewer than 57 complaints or 8 disputes resulted.
As an aside, average motor premiums for all types of Motor policies have been on a declining trend over the past five years. This is notwithstanding yearly underwriting losses in Motor between 2011-2019. Since the inception of phased liberalisation, policy/certificate holders who purchased Third Party cover have benefitted the most.
How does the industry deal with complaints?
In creating greater customer awareness and to address public enquiries and complaints, all member companies of PIAM and MTA have established dedicated Complaints Handling Units as a focal point for managing complaints received by insurers/takaful operators.
In 2017, the insurance and Takaful industry introduced an enhanced Customer Service Charter (CSC), which was an improvement from the previous Charter introduced in 2011. The revised charter focuses on
- The need for Insurance/Takaful to be Made Accessible to consumers through Better Engagement and Improved Services,
- Knowing the Customer (KYC) to Build Trust,
- Timely, Transparent and Excellent Service for Customer’s Satisfaction, and
- Fair, Timely and Transparent Claims Settlement Processes.
The CSC also sets benchmarks on the minimum service levels expected from insurance/Takaful operators, with the objective of reducing the turnaround time of certain services.
Consumers can access the Customer Services Charter from the websites of their respective insurance companies.
Guided by the Charter, PIAM and MTA together with the Life Insurance Association Malaysia (LIAM) conducted an industry-wide Customer Satisfaction Index (CSI) Survey to learn and ascertain the levels of satisfaction among the policyholders/certificate owners with the services and deliverables of insurance companies and takaful operators.
The survey conducted by Nielsen Malaysia provided a clear indication on the level of consumer satisfaction within the industry and highlighted the areas where improvements can be made. The outcome of the survey has guided industry members on improvements and how their customer experience objectives can be met.
In addition, insurance companies and takaful operators are also required to comply with Bank Negara Malaysia’s policy document3 which aims to foster high standards of responsible and professional conduct among financial service providers (FSP), promote a culture where the interests of financial consumers are an integral part of an FSP’s business strategies and operations, provide financial consumers with the confidence that an FSP exercises due care, skill and diligence, and acts fairly in its dealings with financial consumers.
We would like to advise all consumers to contact their respective insurer for any queries or complaints. Should your query/complaint be unresolved, you may refer to:
PIAM at [email protected], MTA at [email protected] and OFS at [email protected]
Source: 1 Complaints count compiled by BNM based on submissions from General Insurance & Takaful Operators dated (8/6/2021). 2 General Insurance & Takaful Disputes from Ombudsman for Financial Services (OFS) dated 21/5/2021. 3 Fair Treatment of Financial Consumers, Policy Document by Bank Negara Malaysia https://www.bnm.gov.my/documents/20124/761679/FTFC_PD_028_103.pdf/f83853d4-7146-9842-a40c-7e20bf0c9b75?t=1590696786502