PETALING JAYA: Adyen, the global financial technology platform of choice for leading businesses, recently announced the results of the Adyen Insurance Report 2026 (Malaysia) with findings indicating that customer service quality (51%) and brand reputation (39%) are some of the key factors shaping how Malaysians choose their insurance providers.
The findings reveal that decisions are increasingly driven by experience rather than price alone.
Consumers today expect insurance journeys to be simple, reliable and consistent across different touch points, particularly during moments of engagement and payment.
Trust in the industry remains relatively strong, with more than 80% of consumers saying they trust insurers in areas such as applying fraud checks consistently and fairly to their payments. However, expectations around convenience, speed, and digital-first experiences are continuing to rise.
The findings are based on research conducted by Censuswide among 2,001 insured consumers and 200 insurance decision-makers across large-scale and mid-market insurers in Malaysia.
Outdated systems continue to limit insurersʼ ability to meet rising customer expectations, with 61% of surveyed insurers still dedicating significant resources to manually process claims.
Thankfully, Malaysian insurers are aware of the stakes at hand. Today, 67% of surveyed insurers are working towards digitalising and streamlining payment systems, while 69% are working towards automating payment-related processes.
This gap is most visible in payments, a key touchpoint where failed or delayed transactions can lead to missed renewals, customer frustration, and loss of trust, even when the underlying product is strong.
A significant challenge associated with recurring payments such as insurance premiums is the issue of failed transactions.
Traditionally, insurers become aware of failed payments after receiving batch processing updates from banks. Yet, these updates may not inform insurers the reasons behind the declined payments, requiring manual intervention for recovery, and therefore a risk of involuntary churn.
This exacerbates the reliance on manual processes, driving up operational costs for Malaysian insurers – which ultimately negatively impacts the consumer experience.
“When insurers don’t have real-time insight into payment performance, issues take longer to identify and resolve,” Adyen manager for Malaysia Lee Soon Yean said, adding that with the right payments partner, insurers can reduce manual work, deliver uninterrupted insurance coverage and ultimately, increase customer retention.
Fraud remains a key challenge as insurers balance speed, security and customer experience. The report estimates that 24% of insurance claims may involve some form of fraud, and 46% of Malaysian insurers estimating that up to 3% of their company’s annual revenue was lost to fraud.
Although insurers recognise the role of artificial intelligence in fraud detection, adoption remains uneven. Only 39% currently use AI-driven tools, while 61% say the cost of implementing next-generation AI tools outweighs their efficiency gains.
Insurance is increasingly measured against digital-first industries where speed, transparency, and simplicity are standard expectations. This is driving a shift towards more connected and automated ecosystems, where payments, data, and customer interactions are integrated across the full journey.
According to the report, 74% of insurers expect to achieve end-to-end customer journey visibility by 2030, signalling a move away from fragmented systems towards more unified, data-led operations. This can help insurers resolve issues faster, reduce failed payments, and improve operational efficiency while delivering smoother customer experiences.
