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Intelligent Claims Automation Is Reshaping Malaysia’s Insurance Sector

Malaysia, drawn by its strong economic growth, expanding middle-class income and rising insurance penetration levels, is witnessing a new era of innovation – with AI leading the charge in bringing new and intelligent technologies to the mass-market.

According to Bank Negara, the country’s regulator of banks and insurers, life insurance penetration rate stood at 56% in 2018. Foreign insurers have been highly keen in this market despite lingering regulatory uncertainty over the sector’s foreign ownership rules, currently set at a 70% cap.

While ‘motor’ remains the largest class of insurance with a market share of 45.6%, followed by fire at 19.2% and marine, aviation and transit (MAT) at 8.2%; Takaful has been outpacing conventional insurance in the Islamic peninsula.

(Takaful refers to Islamic insurance products.)
Islamic insurance penetration rate in the country will likely touch 16% in 2019. In financial dealings, ‘takaful’ firms follow religious guidelines including bans on interest and monetary speculation and a prohibition on investing in industries such as alcohol and gambling.

Growth in the takaful business in Malaysia, the world’s second largest Islamic insurance market after Saudi Arabia, is backed by government efforts to reach out to the general consumer with affordable insurance coverage and the potential use of better technology as a disruptor.

AI is already poised to play a crucial role in Malaysia’s next big step. By 2021, Artificial Intelligence will allow the rate of innovation to almost double (1.8x) and increase employee productivity improvements by 60% in Malaysia, according to an AI study put forth by Microsoft & IDC-ASEAN Research Group.

While seven in 10 business leaders polled agreed that AI was instrumental for their organisation’s competitiveness, only 26% have embarked on their AI journeys. Those that have adopted AI expect it to increase their competitiveness by 2.2 times in 2021. Though, everyone agrees – every single interaction from here on is going to be digital.

Mckinsey Claims Automation Benefits

Malaysia is also moving towards a cashless society with infrastructure being put into place to facilitate e-payments which have more than doubled per capita from 2011 to 2019. For this, banking solutions in the region have ramped up digital investments so customers can take advantage of convenient and secure banking.

Intelligent Claims Automation

For insurers, claims settlement represents a large customer service touch point. However, taking a customer seamlessly through the claims resolution process is not always going to be simple.

Being an AI-driven insurtech enterprise means being able to fully utilize data and optimize business processes with powerful algorithms, creating the space for data-driven decision making. With AI, the claims process can be augmented using chatbots to convey support and status of a claim, and Machine Learning (ML) that can study large-volume patterns to reveal insights and detect fraud. Claims automation can be achieved at part or whole of the settlement process.

Claims Management Process

The Malaysian Insurance market is already witnessed to big insurers rolling out innovative products for customers, such as “Ask Sara” – AIA’s AI-powered enquiry channel that provides instant, real-time answers to agents anytime via Facebook Messenger. Integrating sensors into the value chain has also provided greater rewards with predictive modelling and data analytics, like Katsana – a telematics company that is enabling insurers to provide usage-based insurance based on driver’s performance data. These measures allow for safer, accurate and more affordable risk-based pricing for consumers.

The attitudes of the insurers and younger generations are shifting alongside their Asian peers, to a seemingly more AI-involved future. While the general insurance trade has witnessed nearly stagnant growth over the past several years, AI can help lower overheads and variable costs that will enable insurers to roll out affordable coverage, including to the under-served segment.


Enterprises benefit from our AI-first thinking.
We build AI roadmaps from scratch, guiding you all the way through your next transformational journey.

To learn how, drop us a line here: hello@mantralabsglobal.com


International Insurance Landscape

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What If the Sun Took a Day Off?

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Ever wondered what life would be like if the Sun took a day off? Picture waking up to an Earth shrouded in darkness, where temperatures drop dramatically within hours, plunging the planet into an icy chill. Plants, deprived of sunlight, would halt photosynthesis, leading to a food production crisis. Our reliance on renewable energy would face a sudden halt, causing widespread blackouts and chaos in cities across the globe.

A day without the Sun would throw our world into chaos! Luckily, that’s never going to happen (at least in our lifetime!). But this thought experiment underscores the Sun’s critical role in our lives and highlights why harnessing solar energy is so vital. While we’re increasingly turning to solar power, we are still missing out on capturing a massive amount of solar energy that falls on Earth every single day.

How Much Solar Energy Are We Missing Out On?

Every day, the Earth receives about 173,000 terawatts of solar energy from the Sun—more than 10,000 times the world’s total daily energy consumption. Despite this abundance, we only capture a tiny fraction of this energy. In 2023, solar energy accounted for just 4.5% of global electricity generation—a huge opportunity waiting to be tapped.

If we could capture just a small percentage of the Sun’s energy, we could power the entire world many times over. The total solar energy that hits the Earth in just one hour could meet the world’s energy needs for a full year. Yet, due to limitations in solar panel deployment, technology efficiency, and energy storage, the vast majority of solar energy goes unused each day.

As we improve solar technology and infrastructure, capturing more of this energy becomes not just a possibility but a necessity for a sustainable future. Let’s dive into how cutting-edge technology is making solar energy more accessible and efficient, helping to turn this untapped potential into real, usable power.

How Tech Makes Solar Adoption Easier

Customer-centric technology is revolutionizing the way we adopt solar energy. Imagine an app that allows you to simply point your smartphone at your house to estimate how many solar panels you need, their ideal placement, and the energy they can generate.

Here are the key benefits of this innovative approach:

  • Precision: By capturing images of your property through satellite, the app calculates the optimal placement of solar panels for maximum energy production. Studies have shown that precise placement can increase efficiency by up to 20%.
  • Customer Engagement: Users receive real-time insights into their energy production, helping them understand their solar power system better, whether they’re using Tesla solar panels, solar power generators, or even solar attic fans to optimize home energy usage
  • Seamless Experience: With user-friendly interfaces, consumers can easily monitor their solar systems remotely and receive updates on their energy output. This accessibility is crucial for encouraging the wider adoption of solar technologies.

The Tech-Driven Shift Toward Sustainability

As solar technology evolves, so do the solar panels themselves. Innovations like Tesla solar roof systems, flexible solar plates, and bifacial panels are redefining what’s possible in renewable energy. Even smaller systems—such as portable solar generators and solar air conditioners—empower homeowners to harness solar power efficiently.

Photovoltaic (PV)  panels, the cornerstone of solar energy, have seen incredible advancements, now boasting efficiencies of up to 22%. This means fewer panels are needed to produce more energy, making solar energy more effective for a wide range of applications, from solar shingles to off-grid systems.

Moreover, the push towards cradle-to-cradle sustainability is reshaping the industry. New solar panels are being designed with recyclability in mind, reducing their environmental footprint. Innovations in recycling technology now recover up to 95% of materials from end-of-life panels, ensuring that even the oldest solar systems contribute to a greener future.

While solar technology continues to advance, solar panels themselves are becoming more efficient and environmentally sustainable. Innovations such as systems, flexible solar plates, and bifacial solar panels are pushing the boundaries of what’s possible in renewable energy. Even smaller systems like portable solar generators and solar air conditioners are empowering homeowners to tap into the power of the Sun efficiently and sustainably.  Photovoltaic (PV) panels, the cornerstone of solar energy – now boast efficiencies of up to 22%​. This means a smaller array of solar panels for home or commercial use can generate more electricity. This makes solar energy systems more appealing and effective for various applications, from solar roof shingles to off-grid solar systems.

Moreover, the move toward cradle-to-cradle sustainability—where solar panels are built from materials that can be easily recycled—has gained traction. This reduces the environmental footprint even further. Innovations in recycling can recover up to 95% of materials from end-of-life panels, According to PV Cycle​, with room for improvement in recycling.

Making Solar Affordable and Accessible

Historically, one of the biggest barriers to solar adoption has been the cost. But things are changing fast. Innovations in financing models, such as Power Purchase Agreements (PPAs) and solar loans, have significantly reduced the financial burden of installing solar systems. According to the Solar Energy Industries Association (SEIA), the average cost of solar installation has dropped by over 70% in the last decade.

Couple that with federal and state incentives like the Investment Tax Credit (ITC), which provides a 30% tax credit on solar installations, and solar energy is more affordable than ever. Net metering programs, which allow homeowners to sell excess energy back to the grid, further enhance savings, making solar not only accessible but also financially rewarding.

Conclusion

The future of solar energy goes far beyond rooftop panels—it’s about making the entire solar experience intuitive, accessible, and sustainable. With smart apps and tech-driven tools, consumers can now manage their solar energy systems with just a few taps on their phones, making the shift to green energy simpler and more engaging.

At Mantra Labs, we’re at the forefront of this solar revolution. We’ve helped some of the world’s largest solar providers develop cutting-edge, customer-friendly solutions. Our mobile apps allow users to estimate solar panel needs, monitor system performance, and even track their environmental impact—all from the convenience of their smartphone.

Together, with innovative tech and a commitment to sustainability, we’re building a future where solar energy isn’t just an option—it’s the smarter, more accessible, and greener solution for everyone.

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