For many years, insurance premiums have been based on fixed tariffs regulated by Bank Negara. In line with the phased insurance market liberalisation since 2016, insurers are pricing their insurance policies based on consumer risk profiles.

Insurers and insurance agencies are offering different prices for purportedly the “same” protection. Price has become our top concern in choosing an insurer or insurance agent for our insurance protection.

So, what is the risk if we choose our insurer or insurance agent based just on price only? Does it matter where we purchase our insurance?

It may be too late when the unexpected happens and we have problem making our claims. No one explains to us that the cover is actually inadequate. On top of that, we forget to assess the professionalism of the insurance agent in term of service standard, claim handling and track records.

We may also forget to find out the strength of each insurer in that the particular class/type of policies or insurable assets and whether the insurance agent is knowledgeable enough to give the best protection advice.

So, do you still think that it doesn’t matter where you purchase your insurance as long as it is the cheapest?