02/03/2026

MONDAY | MAR 2, 2026

12

BANKING & INSURANCE

M’sian insurers gear up for electric and autonomous age

PETALING JAYA: Malaysia’s insu rance industry is entering a transformative phase as electric vehicles, autonomous technologies and evolving mobility patterns reshape risk and coverage models, according to Allianz Partners managing director for Asia-Pacific, Middle East and Africa, Vinay Surana ( pic ). Speaking exclusively to SunBiz , he highlighted three major trends redefining the local insurance landscape – the growing sophi stication of motor insurance pricing, the rapid adoption of EVs and new mobility models, and escalating climate-related risks. “Motor insurance remains Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

Allianz Partners is also focused on supporting Malaysian consumers and businesses through these tran sitions. “We believe building safer, more inclusive mobility is a shared res ponsibility,” Vinay said. The company works with original equipment manufacturers (OEMs) and mobility operators to deliver simple, embedded insurance solutions, ensuring pro tection keeps pace with evolving technology and regulatory changes. Looking ahead, Vinay sees opportunities for insurers to innovate over the next three to five years. Products will need to address emerging risks like software failures, data issues, and cyberattacks, while victim protection remains central. Insurers are also expected to offer comprehensive trip coverage under Mobility as a Service models, providing insurance across multiple transport modes.

mobility patterns. Allianz Partners is exploring data-driven and embedded insurance solutions, designed to integrate seamlessly into mobility ecosystems. Despite progress, gaps remain in Malaysia’s regulatory framework, particularly around liability, data governance, and the interplay between human drivers and vehicle software providers. “Without clarity, insurers face uncertainty in under writing and claims outcomes,” Vinay said. “Global experience in mature EV and ADAS (Advanced Driving Assistance Systems) markets allows us to support the local ecosystem with data insights, strategic partnerships, and modular coverage solutions.” From a business perspective, insurers are balancing the trade-off between lower accident frequency and higher claim costs in the EV sector. “It’s a fundamental shift,” Vinay noted. “Dynamic, usage-based underwriting and partnerships with mobility providers help us assess risk in real time, while continuously refining pricing models as more claims data becomes available.”

o New technologies, evolving mobility patterns and rising climate-related risks transforming landscape of motor segment: Allianz Partners

remote supervisors determining fault after accidents becomes more chal lenging. Vinay stressed the need to keep motor insurers as the primary point of compensation to ensure victims are protected. “Traditional liability frameworks are under strain in mixed traffic conditions,” he said. “Insurance products must evolve to incorporate risks such as software failures and cyberattacks, while pricing and coverage adapt to the unique nature of autonomous claims.” The rise of multimodal mobility, from ride-hailing and micro-mobility to public transport, also demands a shift in underwriting philosophy. Vinay said insurers must move beyond vehicle-centric approaches, adopting flexible, usage-based policies that reflect real-world

and even mobile charging assistance for depleted batteries. “While EVs may reduce accident fre quency due to advanced technology, claims costs are higher because repairs involve expensive and complex components,” Vinay explained. “Insurers are lever

the backbone of the industry, but pricing is moving beyond traditional metrics such as engine size or no claim discounts. Insurers now analyse granular data including postcode-level flood and theft exposure, driver profiles, and vehicle safety features,” Vinay said. EVs, he noted, are funda

mentally altering the market. Malaysia’s first half of 2024 saw EV sales surge 150% compared with the same period in 2023, and EVs now account for nearly 8% of private car policies. The shift brings higher and more complex insurance costs, prompting tailored products that protect high value components like traction batteries, home wallbox chargers,

aging digital tools and piloting AI solutions to enhance claims effi ciency while monitoring the broader EV ecosystem for underwriting resi lience.” Autonomous vehicle technology introduces another layer of com plexity. As responsibility moves from drivers to machines and potentially to multiple parties including manu facturers, software developers, and

“The future lies in insurers becoming proactive mobility partners collaborating with OEMs, technology providers, and regulators to shape a safer, more sustainable transport ecosystem in Malaysia,” Vinay said. RHB receives US$150m sustainability-linked loan from UOB Malaysia PETALING JAYA: UOB Malaysia has extended a US$150 million (RM583 million) sustainability linked loan (SLL) to RHB Banking Group, enhancing RHB’s financial flexibility to advance its sustainability commitments and support transition financing. The three-year facility will be used for general corporate and long-term funding needs. It strengthens the group’s long-term funding profile while enabling the group to embed sustainability considerations across its operations, and continue supporting customers, businesses and communities as they progress along their transition pathways. UOB Malaysia wholesale banking country head Andy Cheah said: “UOB Malaysia is committed to advancing the growth of sustainable finance and working alongside like-minded partners who share this purpose. Sustainability has always been central to our strategy, and we are delighted to collaborate with RHB on this deal.” RHB Banking Group chief sustainability officer Angus Salim said, “Aligned with our PROGRESS27 corporate strategy to mobilise RM90 billion in sustainable financial services by 2027, and supported by the rollout of our Sustainable and Transition Finance Framework, this facility reinforces our commitment to supporting clients as they advance along their transition pathways while strengthening the role of sustainable finance in enabling resilient, long term economic growth.” The SLL structure links the facility’s terms to RHB’s performance against specified sustain ability indicators, embedding accountability within the group’s funding strategy. As at December 2025, the group’s cumulative sustainable financial services mobilisation exceeded RM59 billion, representing close to 66% of its 2027 target.

Zurich Malaysia’s AI-powered Z Buddy – a friend to agents and customers alike Zurich Malaysia’s Z Buddy received recognition for AI adoption at Insurance Asia News Awards For Excellence 2025

PETALING JAYA: In today’s insurance and takaful landscape, agents are expected to respond quickly to complex enquiries, manage renewals efficiently and maintain strong relationships with customers. Yet, much of their day is still spent on manual tasks such as preparing motor and travel quotations, searching through policy or certificate documents and clarifying product details across multiple systems. To address these challenges, Zurich Malaysia developed Z Buddy, a ground-breaking artificial intelligence-powered virtual assistant that provides real-time support on travel and motor insurance/takaful and product details through a single channel – WhatsApp. Instead of logging into multiple portals, agents can simply chat with Z Buddy as they would with a colleague. Its multilingual capabilities, including English, Malay, Chinese and Tamil, enables agents to serve customers

Together, these capabilities reduce repetitive work and allow agents to spend more time advising customers. This innovation has been recognised at the regional Insurance Asia News Awards For Excellence 2025, where Z Buddy received the Excellence in AI Adoption – General Insurer Award, a category that honours insurers applying AI in meaningful and scalable ways to modernise operations and improve outcomes for customers and employees. Commenting on the recognition, Zurich Malaysia chief data officer Randhir Singh said: “Our agents and marketers have always gone the extra mile for customers, but too often they were held back by processes that didn’t match how they really work. With Z Buddy, we are using AI to remove much of that repetitive, behind-the-scenes effort, so our people can focus on listening, advising and caring for what truly matters.”

in their preferred language. Z Buddy is also the first in the industry to empower both agents and customers to conveniently renew their motor insu rance/takaful via WhatsApp. It interprets complex questions about policy/certificate coverage and streamlines the entire motor renewal journey – from receiving a renewal request and checking eligibility to generating a customised, password-protected quotation, issuing a payment link and releasing the cover note, all within one WhatsApp conversation. These capabilities will soon be extended to cover life insurance and family takaful product enquiries, enhancing support for agents. When a query requires nuance or reassurance, Z Buddy routes the conversation to Zurich’s dedicated live support team, ensuring agents still have direct access to expert help while enquiries are managed and tracked in a structured way.

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