MySalam scheme insufficient to meet B40 takaful needs, says consultant

KUALA LUMPUR: The benefits of mySalam, the free national health protection scheme, may not be sufficient to meet the takaful needs of the B40 income group and make a significant penetration in this segment, said a research consultant.

Dr Schanz, Alms & Co partner Henner Alms said that although demand for the government’s insurance initiative was substantial, the programme had limitations.

“It covers 36 critical illnesses and provides a reward in case members acquire any of these diseases. However, the challenges that the B40 segment is facing could be far wider. The question is really how to get beyond the current solutions that are provided,” he said.

He told reporters at the launch of Malaysian Reinsurance Bhd’s inaugural issue of Thought Leadership publication “Malaysian Insurance Highlights (MIH) 2019” yesterday. 

Alms said there had been very different approaches taken across emerging markets and gain access to more people.

“I think it is agreed that the under-penetration in low-income segments is a major challenge for every society, because these people are those who are more exposed to disasters, and have the least protection.

“Therefore, it is in the interest of every policymaker and insurer to find solutions to address this kind of challenge. However, it is not easy and often enough solutions that have been taken across different markets are frequently a combination of private sector (insurers) and the government on the other side,” added Alms.

On broadening the 36 critical illnesses scope, he said it was not necessary because the B40 segment was facing a number of different challenges.

“If you take China and India, for instance, the agricultural insurance in combination with the government is a very good solution to provide income safety to that segment, but that is a completely different approach that will also provide great benefits,” he said.

Founded in 2008 and domiciled in Zurich, Dr Schanz, Alms & Co supports its clients in  researching and analysing their business environment, developing and implementing a distinct strategic profile and effectively communicating with their key stakeholders. – Bernama

Subscribe and get top news delivered to your Inbox everyday for FREE