Customer Satisfaction Index 2024: Insurance & Takaful Industry Continues To Strengthen Public Trust, Delivering Customer Satisfaction

KUALA LUMPUR,- September 2025, - The Malaysian insurance and takaful industry has recorded an improvement in service excellence, with the latest Customer Satisfaction Index (CSI) reaching a commendable 88 points in 2024. This marks positive momentum, rising steadily from 80 points in 2018 to 85 in 2022, and now achieving a new high. The upward trend, reflects the industry’s consistent efforts to build public trust and confidence while enhancing the experiences, services, and support provided to policyholders nationwide.

The Customer Satisfaction Survey (CSS) 2024, commissioned by the Life Insurance Association of Malaysia (LIAM), Malaysian Takaful Association (MTA), and Persatuan Insurans Am Malaysia (PIAM), in collaboration with Bank Negara Malaysia (BNM) was conducted by NielsenIQ Malaysia. The survey gathered insights from over 9,000 customers across 48 participating operators, covering 14 life insurers, 15 takaful operators and 19 general insurers.

This is the third CSS conducted since the revised Customer Service Charter (CSC) was introduced in 2018. The revised CSC was aimed to improve quality and transparency of services to insurance and takaful customers, covering four pillars namely accessibility, product suitability, service efficiency and claims transparency.

The findings reflect the industry’s ongoing commitment to continuous improvement in socially responsible conduct, and customer empowerment, while reaffirming its mission of providing financial security and peace of mind to Malaysians through enhanced service delivery, digital innovation, and inclusive engagement strategies.

Key Highlights of CSS 2024:

1. Rising Satisfaction Across the Board: Out of 48 participating insurance and takaful operators (ITOs), 37 recorded improvements in their CSI scores, while the rest sustained their performance with only minor variations. This consistent progress highlights the industry’s collective commitment to customer-centric service and operational excellence.
2. Digital Shift Gains Momentum: Digital adoption continues to grow among Malaysians, with awareness of online platforms for enquiries and participations in the product up by 20% points since 2022. Notably, 43% of customers now express openness to buying or renewing their policies online, a positive signal for the industry’s digital transformation journey. However, inclusivity remains significant, particularly for older individuals and those who are less digitally savvy.
3. Stronger Post-Purchase Engagement: While the initial purchase experience remains important, survey findings reveal a clear shift in customer priorities toward post-purchase engagement. Key drivers of satisfaction now include prompt handling of enquiries, the professionalism of frontline staff, and the availability of personalised product offerings. This marks a shift from pandemic-era concerns around access and privacy, highlighting the industry’s progress in building deeper, more service-driven relationships with its customers.
4. Advancing the Claims Experience: Claims remain a crucial “moment of truth” for customers, and the survey shows encouraging improvements in satisfaction levels. At the same time, the survey shows that improvements are still needed, particularly in speeding up claims processing and providing clearer, more consistent communication with policyholders. Recognising these key areas of concern, the industry is committed to closing these gaps by strengthening transparency, demonstrating empathy and ensuring customers receive timely and consistent support throughout their claims journey.
5. Enhancing Banca/Call Centre Channels: The survey indicates that the Banca channel customers are less satisfied due to limited awareness on available support for policy servicing and claims, highlighting the need for greater customer awareness and support. It also highlights concerns about Call Centres, with customers citing long wait times, repeated follow ups and complex processes. To address these issues, the industry is focusing on closing service gaps by simplifying procedures, improving responsiveness, and providing clearer updates on claims.
6. Supporting Vulnerable Segments: The survey highlights that 43% of customers fall within the “vulnerable” category, comprising those with limited financial literacy, low savings, or high debt. Challenges remain for older customers, B40 groups, and those in East Malaysia in accessing digital platforms.

To address these challenges, the industry has been proactively engaging with the Financial Education Network (FEN) through nationwide financial literacy initiatives, particularly in underserved communities in developing multi-channel engagement strategies and plans to foster inclusivity and broaden access to essential protection.

Raising Awareness of the Customer Service Charter (CSC)

While overall customer satisfaction is on the rise, awareness of the Customer Service Charter (CSC), remains modest at 29%. This highlights a clear opportunity for the industry to empower customers with the knowledge and their rights and the service they can expect.

Moving forward, the industry is committed to strengthening awareness of the CSC through the following initiatives:

• Investing in inclusive, user-friendly digital platforms for all demographics.
• Enhancing claims processes with greater transparency, speed, and compassion.
• Strengthening customer support channels, including agents and call centres to provide timely and effective assistance.
• Proactively educating customers of their rights, expectations, and the service standards under the CSC.

Mark O’Dell, CEO of LIAM commented, “The survey has provided the life insurance industry with invaluable insights, and we will continue to use this data to address key areas and further enhance the customer experience. This outstanding result is a collective achievement and a reflection of the tireless efforts of every professional in the industry from our dedicated agents on the ground to our service and claims teams. Our goal remains unchanged: to provide every Malaysian with financial security and peace of mind.”

“This survey is a meaningful benchmark of our industry’s performance, and we are proud to see such positive momentum. It reaffirms our shared mission to serve Malaysians with fairness, trust, and transparency. As expectations evolve, so must we and these insights will help us ensure that no one is left behind,” added Encik Mohd Radzuan Mohamed, CEO of MTA.

“The 2024 Customer Satisfaction Survey reaffirms the positive trajectory of Malaysia’s General Insurance sector, with strong gains in satisfaction and trust. We are encouraged by the progress in service quality and digital engagement, and equally mindful of the areas where customers expect more from us. Moving forward, the industry remains committed to advancing digital adoption, strengthening claims transparency, and ensuring that our products and services remain accessible and relevant to every Malaysian,” said Mr Chua Kim Soon, CEO of PIAM.

The industry will continue to collaborate with key stakeholders to enhance public awareness, strengthen customer service and promote financial security, while ensuring that it remains dynamic and innovative, ultimately contributing to Malaysia's financial resilience and inclusive growth agenda.