Conclusion

Malaysia insurance industry is still growing from years to years, increasing number of companies formed due to increasing demands of market. General insurance industry is also developing and improvising to satisfy the needs of markets. The market growth of general insurance is mainly due to increase number of sales in motor insurance. As for market share of general insurance in Malaysia, as usual, motor insurance is the highest out of all the other insurance. This was mainly due to increasing number of moving vehicle in Malaysia from years to years, as every household has at least one car. In terms of general insurance buyers, there are three types which are individual consumers, small and medium business, and large business and organizations. Malaysia has a relatively low buyer power as most of the customers are individual customer, and those having a lower deal of bargaining power compared to the others.  There are also plenty of direct general insurance in Malaysia, but most insurance companies face the issue of under-pricing of motor and fire insurance products having a tariff rate. Somehow, motor insurance rates have been revised and expected to detariff.

To increase sales and maintain their marketplace position, different tactics and strategies are developed. The marketing systems include database development, competitive analysis, product development, and also leveraging marketplace opportunities. In terms of database development, most insurer developed a database to identify their current customers and also to evaluate which types of products are leading in sales. Secondly, insurers not only deal with the customers, they also need to analyze the other competitors on what are they doing in terms of pricing, market strategies, skills and more. As for product development, insurers always have to predict and identify the needs of customers, so that they can always come out with new product that can attract their customers to increase their sales and profit. A better understanding on the customers will always benefit the company. Last but not least, leveraging marketplace opportunities, which means that insurance companies analyze on current status of the marketplace such as technology effects.

Distribution systems are the method used by insurance firms to reach out to the customers, while in Malaysia, insurer reach out through direct writer, wholesaler, agency system and also broker market. As for distribution channel, most cost effective way would be direct response system as this is way cheaper than using agency. Furthermore, insurer also used internet to provide online assessment so that it can save time and cost. Besides that, call center is also one of the channels, insurers tend to communicate customers through phone to advise and suggest on different issues such as claims or product information. Bancassurance is also one of the channels, which implies the partnership between a bank and insurance films. Malaysia distribution system and channels had developed from years to years. At first, Malaysia mainly depends on agency force and brokers, and now, internet and also bancassurance have also grown significantly.

Once and again, insurance industry is highly competitive, especially in general insurance as more and more companies had been formed. In near future, market value for cars will declined, which will impacts the car sales and also the premium for motor insurance industry. Hence, Malaysia insurance companies need to be able to analyze the economic and political risks and opportunities. Lastly, insurance industry is still growing and opportunities only come to those that understand the local market