Malaysia‘s general insurance sector is experiencing substantial growth, and MSIG Malaysia is strategically investing in artificial intelligence (AI) to not only keep pace but also to take a leading position. CEO Ang Yien Chia believes that AI-driven insights are essential for providing more affordable and accessible insurance options for Malaysian consumers, potentially transforming the industry’s future.
MSIG Insurance (Malaysia) Bhd. is increasing its investments in data analytics and AI to gain a deeper understanding of its customers and make quicker, more informed decisions in the dynamic market.
Ang Yien Chia, who became CEO in July, has a clear vision for the company’s direction. She told Insurance Asia that “AI allows us to price more accurately and respond more quickly to market needs.” This strategy goes beyond operational efficiency; it aims to fundamentally improve the customer experience.
According to Ang, the long-term sustainability of the insurance industry depends on making insurance more affordable and accessible without sacrificing quality. She explained, “With on-demand solutions, we can serve customers who might have been priced out of traditional products while also meeting the evolving expectations of digitally native consumers.”
The projected growth of Malaysia’s general insurance sector highlights the opportunities for innovation. GlobalData Plc. projects the sector to expand at a robust 6.6% annually, reaching $7.2 billion by 2029. This growth trajectory underscores the need for insurers to adapt and innovate.
MSIG Malaysia, a subsidiary of Japan’s Mitsui Sumitomo Insurance Co., has already experienced the positive effects of its digital initiatives. Last year, their digital channels contributed $19 million (RM80 million) in gross written premiums, representing a remarkable 39% year-over-year increase. This growth was driven by strategic digital partnerships and targeted social media campaigns designed to enhance brand awareness.
AI Applications in Claims Processing
MSIG is also utilizing AI to enhance its claims process, beyond customer engagement. Their system employs image analysis to assess vehicle damage and determine the most cost-effective repair solutions. This AI-powered system successfully handled 56% of external body damage claims with a 93% accuracy rate, significantly reducing turnaround times and improving customer satisfaction.
Technology is not the only focus; Ang is also dedicated to talent development, especially attracting young professionals in a competitive job market. She stated, “Today’s young talents want to know their work matters. They’re drawn to environments where collaboration is genuine, not a corporate buzzword, and where they can take on assignments that have real impact.”
To support this objective, MSIG is implementing fast-tracked career paths and investing in pricing tools. The company is also strengthening programs focused on mental wellness and work-life balance.
The company acknowledges the challenge of retaining talent. Aon Plc reports that two in five Malaysian employees are considering switching jobs within a year. While compensation is a significant factor, Gen X and Millennial workers also value flexibility and autonomy.
“When we frame our work in terms of real-world impact—helping families recover from unexpected events or enabling businesses to take calculated risks—the insurance industry becomes much more attractive.” – Ang Yien Chia, CEO, MSIG Malaysia
Ang succeeds Chua Seck Guan, who retired after an impressive 42-year career. Chua oversaw two mergers and four acquisitions, introduced risk-based pricing, and established the insurer’s data analytics capabilities, leading to 15 consecutive years of underwriting profitability. To ensure a seamless transition, Chua remains a senior advisor.
Under Chua’s leadership, MSIG Malaysia’s net income increased by 9.8% year-on-year to $88.1 million (RM370.13 million) last year.
MSIG Malaysia’s strategic shift toward AI-driven solutions reflects a broader trend in the insurance industry, where data and analytics are becoming increasingly crucial for competitive advantage. By continuing to invest in these technologies, the company is well-positioned to capitalize on the growing Malaysian insurance market and shape the future of insurance in the region.
