An Impact of Pandemic on Protection survey commissioned by Zurich Malaysia found that the virus outbreak has led to increased awareness for insurance protection but 84% of Malaysians say it also reduced the affordability for protection among Malaysians.
This increased awareness however did not translate into action as 38% of Malaysians still do not have any personal protection, affordability is the main reason for not having protection.
Of the 1201 respondents, 62 percent said that the pandemic has affected their ability to afford insurance or takaful. Worryingly, about 23 percent or almost one in every four Malaysians cannot afford personal protection.
The survey was conducted in late September 2021 in all states, with the majority of the respondents or 64 percent coming from the 18 to 34 age group.
72 of the 84% are willing to set aside up to RM200 a month for protection if they can afford it, meanwhile, 60 percent respond they cannot afford protection.
However, 29 percent of respondents who do not have insurance or takaful protection attributed it to not having enough information such as lack of understanding such as thinking they do not need protection (23 percent) and negative perception of the industry (10 percent) are other reasons cited.
Lastly, 12 percent of those who do not have personal protection, rely on their employers to protect them, this is a potential cause for concern as their protection is not carried over in the event they lose or switch jobs.
The findings also found the primary reason Malaysians chose to get personal protection is for their retirement or their use in the future.