AIG Malaysia is planning to gather driving data from Malaysian drivers as it aims to promote safer driving habits locally. As AIG Malaysia marks the countdown to the brand’s global centennial celebration, and also celebrated its 66th year in safeguarding Malaysia and Malaysians, CEO of AIG Malaysia Antony Lee expressed concern with the high mortality rates due to road accidents in the country.
In 2017, the Ministry of Transport reported 533,875 road accident cases in the country, and over 6,700 fatalities. To an insurance company, this isn’t just about managing the risk and reducing payouts; fatalities and casualties have a great impact on the society and economy. To tackle this issue, AIG will be introducing a mobile app in 2019 that uses telematics to learn how Malaysian motorists drive as well as to show Malaysian motorists how they drive. Through a game-like interaction, with a scoring system and rewards, it is hoped that this will encourage better and safer driving habits.
“Technology has allowed us to locate and manage real-time risks as we improve road safety standards for drivers and pedestrians alike. In line with our #AIGJagaYou promise, we will leverage data-driven insights from our mobile app, along with our claims experience, to cultivate better driving behaviours nationwide. This effort is also in line with the liberalisation of motor insurance where premiums are now heavily influenced by driver risk profiles,” said Lee.
Besides the risk in motor insurance, Lee also highlighted the growing risk in travel, as Malaysians are increasingly seeking international destinations for travel. The number of international outbound trips from Malaysia is forecasted to reach 14.2 million by 2021. This exposes Malaysians to such risks as unpredictable weather, natural disasters and acts of terrorism.
With the rise of such risks, AIG introduced a comprehensive travel insurance – TravelGuard, and 24/7 worldwide travel assistance with AIG Travel Asia Pacific (ATAP). This is a first-of-its-kind global assistance service with a network of 8 service centres worldwide and multilingual staff to assist travellers with anything from baggage delays to medical emergencies and evacuation.
In the past ten years, it has handled over one million calls and nearly 1,000 evacuations from disaster zones, providing customer support including medical advice from in-house doctors and nurses.
Another increasing risk related to disasters involves Malaysia’s small and medium enterprises (SMEs) and their exposure to such perils as data, fire and flood damage. Only about 15% of SMEs have purchased flood cover despite floods becoming increasingly frequent. The Ministry of International Trade and Industry reported that the Kelantan floods in 2014 affected 13,000 SMEs, almost 40% of SMEs in the state.
In Penang last year, flash floods happened in previously unaffected areas, and nearly 2,000 victims had to be evacuated. AIG paid out an estimated RM2 million in claims, with a proactive interim payment of RM20,000 to some of the most affected policyholders within four days of notice.
Likewise, fire risk, which accounts for the most claims by SMEs in the last three years is also growing. Despite the increase, only about 15% choose to purchase business interruption insurance. In 2019, given the past trends, AIG forecasts higher risks of property and equipment damage for SMEs, and has designed an SME insurance plan that offers 13 types of protection under one comprehensive policy.
Finally, with the advent of big data and the increasing application of the Internet of Things, AIG sees cyber risks growing. In Greater China last year, AIG saw an 87% increase in cyber submissions following the WannaCry cyberattack, which is more than double the 38% increase that AIG observed globally. There was also a 75% increase in total cyber insurance claims from 2016 to 2017.
AIG sees an increase in local demand for cyber protection against data breaches, hacking, identity theft, virus and malware. The company, together with solutions provider Dimension Data, has formulated its CyberEdge insurance and Cyber Breach Response and Claims teams to support clients during cyber-related exposures.
“Over the last six decades we’ve grown and progressed with this country and fellow Malaysians. As we move into 2019 and beyond, we remain committed to our promise to be there for our customers even as technology and socioeconomic factors change the way we live. We will continue innovating our solutions to remain both relevant and accessible, to be Malaysia’s most trusted insurance partner for the next 100 years,” Lee concluded.