In: Finance
Why most of the Malaysians are savvy savers but underinsured (30m)
Malaysians are most eductaed and savvy in savings planning and beware of the future needs in insurance but are often underinsured.
according to the recent survery of 11,000 people in 11 countries 59% respondents in Malaysia said they had a better than fair understanding of their options for protecting themselves and their family from income loss due to disability or illness. Despite claiming to have a good understanding of insurance, Malaysians are generally underinsured,this was 30% more than the international average . a total of 41% were confident of their understanding of life insurance and their usage.
A high awareness of the income protection gap and a large number of underinsured users is common in emerging markets. the need for insurance will grow as the income of middle income group increases in emerging market in malaysia . there is a pertcular trait that about malaysian workers about 64% of employees prefer to have benfits packages that include income protection while 30% preder minimum salary .
a larger number of people require income protection over salaries , which makes sense , when salary and income protection come in package it is good together it is more secure job in terms of job protection
it is also common for business man to purchase keyman insurance which is the key for personnel in the company . the beneficiary would be company which protects other business partners . we expect to see more people talking about employee benefits but take up rate is low in businesses .
another aspect is that the gap is wider among the younger generation. the population require versus what they have is wider. they need to have a motivation to purchase . the younger you are the less the premium you need to pay as the premium is correlated to the age . in perticular investment linked plans are well designed to suit their needs in perticular hybrid plans.
employers should also take care of salaries they give to employees and give benefits like income preotection . employee benefit is employee care which turns into empolyee retention. if you give the employees the right care and protection they will step us with you in your hard times . happy staff is productive staff. it is obvious that employee prefer salary packages that includes employee care and employers must give this data careful thought .
you would expect the employees to get higher salaries but the opposite is true . group insurance has a lot of potential for businesses in malaysia