Abstract
Financial inclusion plays a crucial role in driving economic development by ensuring access to essential financial services such as credit, savings, insurance, pension plans and financial education. In the insurance sector, financial inclusion aims to extend insurance coverage to low-income groups and enable them to protect their health, assets and livelihoods through the savings and compensation mechanisms of insurance products. This study seeks to enhance the understanding of financial inclusion in the insurance sector by examining the challenges from both the perspective of the individual customer and the industry. From the customer's perspective, this study highlights whether insurance coverage adequately addresses their financial inclusion needs. From an industry perspective, this study addresses critical issues such as customer trust and perceived value, product customization and the impact of macroeconomic factors. In addition, this study proposes strategic solutions to address the identified challenges for both customers and the insurance industry. For individuals, it is recommended that insurance policies should be seen as a complement to savings and investment strategies and not as a substitute for them. For the insurance industry, it is suggested that insurance companies move beyond traditional sales roles and focus on developing products that are tailored to the needs of the market while remaining affordable. The industry should focus on maximizing value for customers. The findings are anticipated to provide crucial insights that can assist the insurance sector in improving customer financial inclusion and addressing current barriers to progress.
Keywords
- Financial Inclusion Search this journal for Financial Inclusion (opens in a new tab)
- Insurance Search this journal for Insurance (opens in a new tab)
- Savings Search this journal for Savings (opens in a new tab)
- Malaysia Search this journal for Malaysia (opens in a new tab)
- Covid-19 Search this journal for Covid-19 (opens in a new tab)
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Copyright (c) 2025 Najihah Marha Yaacob, Aminah Jazilah Azman, Arina Rus Zahira Rusli, Nur Mimi Najihah Ghazali (Author)
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Keywords
- Financial Inclusion Search this journal for Financial Inclusion (opens in a new tab)
- Insurance Search this journal for Insurance (opens in a new tab)
- Savings Search this journal for Savings (opens in a new tab)
- Malaysia Search this journal for Malaysia (opens in a new tab)
- Covid-19 Search this journal for Covid-19 (opens in a new tab)
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Vol. 17 No. 1(I) (2025)
Service Quality, Flexible Work & Operational Excellence
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