The Antecedent of Life Insurance Penetration in Malaysia

A slower rate of economic growth is indicated by a low degree of market penetration for insurance. In contrast to other Asian countries, Malaysia has a comparatively low life insurance penetration rate of 54% throughout the five years before 2020. If Malaysia has a less advantageous rate of life insurance coverage, its citizens will be more financially vulnerable. The observation suggests that people are generally skeptical when discussing insurance-related topics. People's perceptions of insurance are often unfavorable. Now, most people think that getting insurance or being an agent is fraudulent. This is a result of a general lack of understanding about insurance. This study aims to identify or determine the possible causes of Malaysia's low life insurance penetration. Age, awareness, and service quality are the variables linked to life insurance's low uptake. We used a questionnaire to gather primary data, and all the results were evaluated. In Temerloh, Pahang, Malaysia, the researchers distributed the questionnaire to a sample of 150 respondents. To ascertain the research outcome, SPSS was used to analyze the collected data. The outcome of this study revealed that there is a substantial correlation between low life insurance penetration in Malaysia and age, awareness, and service quality.