Some 67% of surveyed buyers would not have bought cover without online exposure.
Zurich Malaysia and ShopeePay Malaysia Sdn. Bhd. are using e-commerce and digital payments to sell critical illness insurance to Malaysians who lack adequate cover, as medical costs rise and conventional distribution struggles to reach some consumers.
“The challenge is reaching people who have never considered it, or who may assume insurance is complicated or beyond their means,” Lee Han Boon, chief proposition management officer for the life segment at Zurich Malaysia, said in an emailed reply to questions.
Malaysia’s insurance and takaful penetration rate is about 56%, but the rate falls to about 41% after excluding people with multiple policies, according to Zurich Malaysia. Only 4% of lower-income households have some form of life insurance or takaful cover.
Zurich Malaysia is seeking to narrow the gap by selling insurance through Shopee Pte. Ltd. and ShopeePay rather than relying solely on customers approaching agents or insurers.
Consumers can buy critical illness insurance digitally without a medical exam, the companies said in July.
The product covers as many as 14 critical illnesses, compared with traditional policies that may cover as many as 45 conditions.
Zurich Malaysia said products sold without an agent need to be simple enough for customers to assess themselves.
“For many customers, this may be their first critical illness coverage,” Lee said. “Rather than overwhelming them with a complex product, we believe it is important to provide protection that addresses essential needs in a way that is easy to understand and purchase.”
ShopeePay said 46% of its surveyed insurance and takaful buyers in 2026 lived outside urban areas, whilst 67% said they would not have bought personal accident or critical illness cover without encountering the products online.
Another 36% reported difficulty reaching an insurance agent offline, whilst 88% were confident buying insurance or takaful and making claims entirely online.
“ShopeePay’s commitment has always been to make financial services simple and accessible to all Malaysians,” Alain Yee, head of ShopeePay Malaysia, said in an emailed reply to questions.
Customers can pay critical illness premiums through SPayLater the following month without fees or in instalments of as long as 12 months.
ShopeePay said 70% of its motor insurance and takaful policyholders already prefer the service, mainly to spread larger annual payments over time.
Zurich Malaysia said medical inflation in Malaysia is running at about 15% to 16%, driven by treatment costs, greater use of healthcare services, and chronic diseases.
Mercer LLC forecasts medical costs across Asia to rise 12.5% in 2026, nearly six times general inflation.
Bank Negara Malaysia said net underwriting losses for life insurance and family takaful funds widened to $881m (RM3.6b) in the second half of 2025 from $220m (RM900m) in the first half.
Zurich’s digital product pays a lump sum after diagnosis of a covered illness and provides monthly income support and access to a second medical opinion. The money can help cover lost income and other expenses.
A July 2026 Sun Life Malaysia survey of 1,060 adults supporting children and ageing parents found that 59% considered themselves adequately insured, but only 35% could maintain their lifestyle for more than six months if their main income stopped. About 29% said they could manage for less than three months.