Insurance companies will have to be more creative to increase sales, following deregulation of motor pricing from 1 July, says the CEO of the General Insurance Association of Malaysia (PIAM), Mr Mark Lim.
He added that innovation will not be the only factor to attract consumers but also the service offered by insurers and how fast they settle insurance claims, reported The Sun Daily.
He cited the provision of child seats -- either for free or at discounted rates -- as an example saying that customers could be attracted to insurers which provide such benefits.
As for motorists, he advised that they start taking an active interest to source for fair premium pricing based on their risk profiles.
He urged motorists not to always go for the cheapest policy because it might not have the best insurance coverage.
"Instead they should find the company or policy that best suits their needs and budget," he added.
He said it was important for motorists to consult agents of various insurance companies and see what products are offered. They also have the option of visiting insurance company websites to look at what is offered.
He said PIAM was worried about the number of road accidents and deaths in the country. He pointed out that in 2016 there was an average of 18 deaths a day due to road accidents, and the most number of deaths involved those aged between 16 and 20 years.
He added that motorcyclists constituted the highest number of motor fatalities with 4,485 deaths last year.
Over the last five years, he said that road fatalities were high. "In 2012 there were 6,917 deaths; 2013, 6,915; 2014, 6,674; 2015, 6,706; and 2016, 7152," he said.
Under the deregulation to start on 1 July, insurers will be allowed flexible pricing for motor comprehensive and motor third-party fire and theft insurance products. However, the premium for motor third party products will continue to be determined by tariffs.
The flexible pricing will take into account various factors including safety and security features of the vehicle, the individuals' driving experience, traffic record and the geographical location of the vehicle. These are in addition to the usual factors considered such as sum insured, cubic capacity of the vehicle engine, age of vehicle and age of driver.