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Commercial insurance is essential in today’s complex world, providing crucial financial protection against physical and cyber risks. It not only offers a safety net against unforeseen events like cyberattacks but also equips businesses with the necessary resources and expertise to mitigate various risks.

Liberty General Insurance Berhad Chief Commercial Lines Officer Foo Yong Chiat told BusinessToday recently that beyond offering crucial financial protection against physical and cyber risks, commercial insurance actively identifies and manages emerging threats, such as environmental changes.

“This not only mitigates financial losses from incidents like floods,  but also enhances business resilience, especially for SMEs, through strategic advisory services. This comprehensive risk management ensures businesses are well-equipped to handle disruptions, maintaining continuity and operational stability, Foo said.

In regions with a higher uptake of insurance, there is often access to richer datasets on various risks, including those related to climate. This abundance of data enables insurers to better understand the specific risks facing a region or market, which, in turn, facilitates more accurate climate modelling and risk assessment.

Leveraging this wealth of data helps governments and organisations develop effective climate resilience plans, allocate resources efficiently, and implement targeted interventions to mitigate risks, he said.

“It not only enhances the resilience of businesses against physical and cyber risks but also contributes to more resilient and sustainable communities by fostering a deeper understanding of climate-related challenges and facilitating proactive risk management efforts.”

For instance, services like Liberty’s Legal Shield offer our policyholders the right legal advice to tackle challenging situations that can be rather stressful, costly, and will eventually leave the business at a disadvantage, especially financially.

Additionally, our ‘BizCare’ package offers a complete insurance package designed to safeguard most businesses against a range of potential risks. From fire and business interruption to liability and burglary, comprehensive protection can protect business assets and give customers peace of mind.

Advancements in the insurance sector in Malaysia

With regard to the advancements in the insurance sector in Malaysia, Foo said, “Over the past year, we’ve observed various trends and advancements that are likely to continue shaping the commercial insurance sector in Malaysia.”

Emerging trends in Malaysia’s commercial insurance sector for 2024 and beyond include a heightened focus on ESG integration and sustainable investing. Insurers are increasingly incorporating environmental and social factors into their operations and underwriting and investment strategies.

Additionally, technological advancements—particularly in artificial intelligence and data analytics—are expected to enhance risk management and claims processing, enabling more efficient handling of both traditional and emerging risks, such as cybercrime.

“At Liberty, we are committed to enhancing our products to meet the needs of our customers and emerging risks. As a result, the first-of-its-kind Video Appraisal technology was introduced by Liberty to enable the expedition of claims processes within just two to three working days, from up to seven days previously.

This digital solution has helped to accelerate the claims resolution process which leads to a quick release of payments for the claimants and instant gratification, especially when Malaysians were faced with the nationwide flood disasters.

While the adoption of technology and digital paved the way to make these advancements possible, our real drive to pioneer this effort is because we believe in helping people embrace today and confidently pursue tomorrow.

“We will continue to monitor the emerging risks to stay ahead of market changes and adapt our policies accordingly. We believe it’s essential for us to maintain flexibility and a proactive approach in addressing evolving risks within the property market.

Emerging Risks, Challenges, Or Trends of the commercial insurance landscape

As the market becomes more competitive and diverse, it’s imperative for Malaysians to stay informed and proactive in navigating these changes. Businesses face new risks and challenges, particularly from technological advancements and cyber threats.

In Malaysia, the phased liberalisation of the insurance industry presents both opportunities and challenges for individuals and businesses alike. It is prompting more tailored and flexible insurance solutions, crucial for effectively managing these emerging risks.

For SMEs, in particular, staying ahead of the curve involves recognising the importance of insurance as a tool for managing risks. While SMEs may lack the resources to handle these risks independently, they could work closely with their insurer provider to help invest in robust risk management strategies, utilising data analytics and predictive modelling, and collaborate closely with insurers to enhance their resilience and competitiveness.

By partnering with an insurer that understands these dynamics and offers innovative solutions tailored to their specific requirements, businesses can enhance their resilience and adaptability in an increasingly complex and dynamic business environment.

Related News

• Businesstoday.com.my: Commercial Insurance Builds Greater Risks Resilience