The phased motor insurance de-tariffication process liberalises the fixed pricing for motor insurance that has been in place in Malaysia for over 30 years. In this new environment, the insurance industry has been gaining the flexibility to offer motor insurance coverage with new features at market-based pricing based on the risk behaviour of the policyholders.
This means, in time to come, motorists will benefit from varying coverage limits customised to match their individual risk profiles. As is the case in a number of countries around the world, credit scoring plays a part in allowing those with good credit scores to enjoy lower premiums for their car insurance.
CTOS, the well known credit reporting agency in Malaysia, aims to enter the car insurance industry by expanding its range of services to provide insurance coverage for motor vehicles. Its subsidiary company, CTOS IDS Sdn Bhd, has launched CTOS Car Insurance, an online platform for car insurance and road tax renewal.
The new service is in collaboration with PolicyStreet.com. which is operated by Polisea Sdn Bhd, an insurance technology company. CTOS Car Insurance is said to provide a fast, hassle-free opportunity to make price comparisons of policies from more than 10 insurance providers within minutes, allowing motorists to find the best deals in the market.
By comparing quotes from a large range of insurers, CTOS IDS says that motorists will be able to find savings of up to RM1,000 from their current deals.
“The strategic partnership between CTOS and an insurance technology company is the first of its kind in Malaysia. We are proud to have partnered with CTOS and believe the collaboration will pave way to more innovative, customised and inclusive insurance protection, leveraging on credit scores and big data for all Malaysians,” said Wilson Beh, Co-Founder of PolicyStreet.com.
In this new collaboration, the CTOS Car Insurance platform will offer motorists policies from leading insurance providers such as Allianz General Insurance Company (Malaysia) Berhad, Etiqa General Takaful Berhad, Zurich General Insurance Malaysia Berhad as well as other leading companies in the country.
Besides roadtax renewal, the new service also comes with further other benefits. Customers who successfully renew or purchase their insurance via the platform will be able to get a free MyCTOS Score Report to stay on top of their credit health. There will also be further discounts on car insurance quotes based on the value of premiums selected.
“A one-stop centre to get an insurance policy and road tax saves time, provides more choice, and ultimately, allows consumers to make more informed decisions. CTOS Car Insurance reflects how we are focusing our partnership efforts to offer consumers end-end digital solutions in increasingly varied industries. Also, in time, we hope to be able to offer even more value by taking into account credit scores to present consumers better prices, in line with the motor insurance de-tariffication process started by Bank Negara in 2016,” said Eric Hamburger, Group CEO of CTOS Digital Berhad, the parent company of CTOS IDS.
MIB (not Men in Black) can provide compensation when you get hit by an uninsured vehicle
