Most Malaysian insurance customers now say they are comfortable buying coverage online, and many are shifting routine purchases to digital channels, according to ShopeePay’s Insurance Trends Survey 2026.
The survey, cited by Minime Insights, found that 88% of respondents felt confident purchasing insurance digitally, while 69% of motor (car and motorcycle) policyholders and 46% of travel insurance customers used online platforms for their most recent policy transaction.
The ShopeePay findings indicate a change in how insurance is being accessed and purchased in Malaysia. A majority of respondents (56%) cited convenience, lower perceived cost, and a faster, more straightforward process as the main reasons for using digital channels, suggesting that self-directed buying and online policy management are becoming standard features of the customer journey. This shift is taking place alongside projections for continued expansion of the digital insurance segment.
Ernst & Young estimates that Malaysia’s digital insurance market could reach RM78 billion by 2030. At the same time, around 10.2 million individuals remain underserved, with respondents pointing to affordability pressures and difficulty understanding complex offerings as ongoing barriers. Consumer platforms with large user bases are being used as distribution points for insurance, placing products within payment and commerce environments that customers already use. This raises operational questions around product governance, disclosures, and suitability when policies are marketed through high-volume, non-traditional channels rather than through in-person advisory models.
The survey results indicate that embedded personal accident (PA) products are drawing in customers who previously had no cover in this line. Among PA customers who bought policies via MoneeInsure Agency, a registered corporate insurance/takaful agent on the ShopeePay app, 78% said they did not hold PA insurance before that purchase. Digital visibility appears to be a central factor in these decisions. Some 67% of these PA customers reported that they would not have bought PA insurance if they had not encountered it online. This suggests that placement within digital ecosystems can generate demand from individuals who were not previously engaging with agents or visiting insurer branches.
The data also highlight a geographic dimension. Approximately 40% of surveyed insurance customers live in non-urban areas, where physical contact with agents can be limited by distance or distribution coverage. Within the PA sub-sample, 16% said they experienced difficulty reaching an agent offline. In these locations, digital platforms function as a primary channel for accessing product information, quotes, purchase flows, and basic servicing, changing how distribution operates between urban and rural communities.
The ShopeePay survey points to payment structure as another driver of online adoption. Among car insurance customers, nearly eight in 10 chose to pay premiums using SPayLater, a buy now, pay later (BNPL) service integrated into the ShopeePay environment. Almost half of those users spread their payments over a 12‑month instalment plan. These patterns indicate that instalment-based approaches and BNPL integration are part of how some customers manage the cost of cover, particularly where annual lump-sum premiums may strain cash flow.
The links between BNPL usage, renewal behaviour, and lapse rates are likely to be areas of further monitoring as digital payment options become more common in motor and other lines. When combined with straight-through issuance and automated reminders, such arrangements may change how premium collection is scheduled and how policyholders think about ongoing coverage, especially in segments that are sensitive to timing and amount of payments.
In parallel with developments in digital distribution, new research from GlobalData’s 2024 Emerging Trends Insurance Consumer Survey examines how consumers view the application of artificial intelligence (AI) in insurance. The study, which covered 5,520 respondents aged 18 and above across 11 countries, reports broad recognition of AI’s potential benefits but notes caution around its wider rollout. According to GlobalData, 73.8% of respondents believe AI can shorten queueing times to speak with insurance agents. A slightly smaller proportion, 71.5%, see AI as a way to deliver operational efficiencies, while 71.2% regard AI tools as better than humans at pattern recognition.
Beatriz Benito, lead insurance analyst at GlobalData, said: “Despite the positive perceptions, insurers face challenges in ensuring consumers adopt AI tools. Many consumers find that the technology is not yet sufficiently developed to be adopted at scale, eroding their trust. To overcome these trust issues, insurers must prioritise transparency in AI-driven decisions, particularly among those who perceive bias in the tools, such as providing negative claim outcomes. Some consumers will have data privacy concerns, while others will simply just prefer interacting with a human.”
Among customers who have already used AI-enabled tools, reported satisfaction levels are comparatively high. The GlobalData survey found that 74.5% of customers using insurance chatbots were either satisfied or very satisfied with their experience. “Most certainly, the use of AI will transform the insurance industry in several ways and will also drive operational efficiencies and cost reductions,” Benito said. She pointed to around-the-clock assistance or customer support and the automation of claims processing, which can lead to reduced settlement times, as examples of how AI may influence operational models and service levels.
GlobalData notes that AI-based pattern recognition can be applied to more detailed risk assessment, pricing decisions, and fraud detection. These capabilities have potential implications for underwriting rules, portfolio management, and claims controls across personal and commercial lines. At the same time, Benito added that “while all in all, AI has the potential of considerably improving satisfaction rates in insurance, the need for the human touch and empathy in engagements continue to limit its full potential. Better communication surrounding AI’s capabilities and nuances will ultimately lead to improved adoption rates.”
The combined findings from ShopeePay’s Insurance Trends Survey 2026 and GlobalData’s research indicate two parallel areas of focus. One is the continued development of digital and embedded distribution strategies that reach underinsured and price-sensitive segments through consumer platforms and alternative payment structures. The other is the design of governance, transparency, and communication frameworks to explain AI use in underwriting, claims, and customer service. As digital access grows and AI tools become more common in front- and back-office functions, insurers will need to align product design, disclosure practices, and data management with evolving expectations from customers, regulators, and other stakeholders in the region.
