KUALA LUMPUR: As Malaysia assumes the chairmanship of Asean this year, opportunities for regional collaboration in the insurance industry, particularly in education and training, are expanding.
The Asean Insurance Training & Research Institute CEO Paul Low said the institute has already actively facilitated such initiatives by sourcing expert speakers to train regulators across Asean.
“In 2025 alone, the institute has plans to conduct six programmes, including a recent session on health insurance.
“Additionally, there is growing demand for specialised training, such as an upcoming programme on electric vehicles,” Low, who is also CEO of the Asian Institute of Insurance (Aii), said. And Aii will be providing this specialised training to the industry.
“Indonesia, for example, has expressed interest in hosting the programme locally. Similarly, the institute’s professional certification programme has drawn requests from Indonesia to be conducted on-site to reduce travel costs.
“Aii is also seeing strong participation from Cambodia, with many professionals enrolling in its certification programme through various formats, including e-learning, in-person sessions, and hybrid models,” he told SunBiz.
Meanwhile, Low highlighted a declining trend in the number of insurance agents within the industry.
He said the life insurance industry is experiencing a decline in the number of agents, a trend driven by the availability of more attractive career options.
“For example, in China, the number of agents has dropped from around 10 million five years ago to just 2 million today.
This decline is largely due to a lack of professional skills and the inability to sustain quality business practices.”
Low noted a similar trend emerging in Malaysia, though not as severe. He said the number of agents in life and general insurance is also decreasing.
To build a sustainable business, companies must equip their agency force with professional and digital skills, Low said.
“The traditional way of selling insurance is becoming outdated, especially among younger generations who rely on digital tools to conduct business.”
He pointed out that digitalisation plays an even greater role in general insurance.
Products such as car and travel insurance can easily be sold online now if companies develop efficient portals and claims systems.
Low said with a well-designed digital platform, businesses can reduce costs, which will ultimately benefit the consumers.
“This shift mirrors the rise of e-commerce platforms like Shopee and Lazada – while physical shopping still exists, many consumers prefer online options for convenience.
“To stay competitive, insurance agents must adapt by embracing digital tools and new business models. While digitalisation poses challenges for traditional agencies, it also presents opportunities for those willing to evolve,” Low said.
Elaborating on adapting digital transformation and insurtech innovation, he said companies are adopting digitalisation, but the extent varies.
Smaller or newer firms tend to embrace it more readily, while larger, established companies – especially those with a strong agency force – face greater challenges.
“Agents often perceive digitalisation as a threat to their livelihood. However, regardless of size, all companies must embark on this digital transformation. It is no longer an option but a necessity,” Low said.
He also said it is encouraging to see that regulators and industry stakeholders are now involved in collaborative discussions, recognising that meaningful solutions often require contributions from all sides.
“For example, reforming the healthcare model is a complex challenge, but the growing focus on affordability and keeping medical inflation at bay is a step in the right direction.”
As for advancing the insurance profession, Low said Aii plays a crucial role in equipping professionals with the skills needed to meet the industry’s constantly evolving demands.
