At the same time, insurers and takaful operators should take advantage of the emergence of new and low-cost distribution channels such as the internet and mobile technology, and adopt multidistribution strategies as a competitive tool to expand the pool of potential customers and cater to a wider range of needs of society. •  Secondly, the industry must deliver more positive customer experience. As the industry is operating in a challenging operating conditions with intense pressure to control costs, one should not compromise on the level of customer service standards. Bad perception of the insurance industry can only happen if services rendered are poor. Industry players must always put the customer experience at the center of their business strategy. Once customers are satisfied with the service level, the upside is to improve customer retention and satisfaction. A recent research has shown that there are various factors that influence customers’ decisions to choose or leave an insurer. Although price and rates and product features are the most often cited reason to select and to leave a provider, about 40% of customers say they would consider choosing an insurer because of brand trust and after-sales services. Therefore, insurers and takaful operators need to assess how customers perceive the quality of their interactions, taking into account the views, perceptions, expectations and values of customers. •  Thirdly, with more complex products and more sophisticated customer demands, the industry needs more skilled professionals to support the financial sector. The insurance industry need to change their approach in attracting talent.

Presently, the call centre is only available for consumers in the Klang Valley and Selangor and is expected to cover nationwide very soon. In addition, enhancements to the Motordata Research Consortium system have been made to facilitate online submission of third party claims assessments directly to insurers to improve the turnaround time for processing claims as well as minimise disputes on offer of settlement. We also need a database akin to the CCRIS to the banking industry, that would significantly improve the risk management aspects and operational efficiency of the industry. 2  BIS central bankers’ speeches  This need is dire as cases of fraudulent claims and excessive third party damages are on an increasing trend. Priorities towards a more competitive insurance and takaful industry There are a number of areas that the industry must strengthen to maintain their competitive positions. •  Firstly, the insurance and takaful industry must make significant changes to raise performance standards in tandem with the global advances and keeping pace with the established international best practices. In particular, there is a need to manage and improve the underwriting performance, by improving claims ratio, enhance productivity and reduce distribution costs. The industry need to adopt a more disciplined approach to underwriting, increase efficiency and precision of internal processes, leverage on the benefits of technology to improve claims processing and policy administration, hence reducing operational costs.