KUALA LUMPUR: The mySalam programme, the free takaful health protection scheme by the government for individuals in the B40 income group, may not be sufficient to meet and address the demands of those who need it.
Speaking to the media on the sidelines of the launch of the Malaysian Insurance Highlights 2019 (MIH) report, Dr Schanz, Alms & Co AG partner Henner Alms said the current programme covers 36 critical illnesses, but the challenges that the B40 segment faces could be far wider than these.
“The question is how do you get beyond the current solutions that are provided? There have been different approaches taken across emerging markets, but it is agreed that the under penetration in low-income segments is a major challenge for every society.
“These are people that are most exposed to disasters and have the least amount of protection, and therefore it is in the interest of every policymaker and insurance provider to find a solution to address this kind of challenge,” he said.
According to the report, when asked about potential alternatives to the current B40 scheme, survey participants came up with suggestions such as subsidised compulsory insurance schemes, technology-enabled solutions and capital relief and tax incentives for those insurers that are actively serving the B40 segment.
Other suggestions also include public-private partnerships between insurers and government agencies, dedicated public-private awareness programmes and innovative ways of premium payments.
The inaugural MIH is the latest in a series of thought leadership publications from Malaysian Reinsurance Bhd, and it offers a comprehensive review of the current opportunities and challenges facing Malaysia’s general and takaful markets.
Dr. Schanz, Alms & Company is a research, communication and business development consultancy focusing on the financial services industry, mainly insurance and reinsurance.