A study on the problems relating to rating and underwriting of private car insurance in Malaysia / Zulkifli Abdul Razak

Motor insurance is possibly the most important insurance policy from the consumer’s point of view. For a vast majority of people, motor insurance constitutes their only point of linkage with the general insurance industry, as it is mandatory for vehicle users to have minimum Third Party 'Act' insurance covers. It is therefore not surprising that it has gained the reputation of being the class of insurance which constitutes the greatest concern to the public and to the regulatory authorities. Any increase in premium rates or costs or when inadequate services are provided would invite much publicized community criticism. Many aspects of motor insurance have been studied in the past. For example, a great deal of information may be found in published so u rees concerning underwriting, the role intermediaries, motor claims and methods to minimize vehicle damage fraud. Moreover, the amount of research that has been conducted in the area of rating in private car insurance is negligible. It is hope that this paper will help to fill this gap in insurance knowledge and will stimulate others to probe more deeply in this area