KUALA LUMPUR, March 30 — Most general insurers and takaful operators (ITOs) are expected to deploy digital roadside assistance (DRA) solutions via web and mobile applications between 2023 and 2024 to improve customers’ motor claims experience and outcome, said Bank Negara Malaysia (BNM).

In its Annual Report 2022, the central bank said this initiative would enable consumers to conveniently manage all aspects of their claims journey digitally from notifying an ITO of the accident to receiving the repaired vehicle.

"Among ITOs, greater use of technology such as telematics (telecommunications and informatics), data analytics, and process automation will further improve the speed, efficiency, and accuracy of claims processes, while controlling fraud better,” it said.

The central bank noted that digital solutions would help address various pain points in the claims processes in Malaysia as consumers might be exposed to harmful practices at the scene of an accident or vehicle breakdown.

"Unsolicited parties who show up at an accident scene often take advantage of accident victims by pressuring them to allow their vehicles to be towed away without notifying the relevant ITOs or dealing with unknown parties to handle aspects of the claim.

"Victims may be made to pay fees for these actions (while) damaged vehicles towed to workshops of unknown repute also raise safety concerns from the use of non-genuine parts or sub-standard repairs,” it said.

BNM said that these practices would ultimately contribute to greater risks of insurance fraud and exaggerated claims due to inflated costs of repairs and parts.

Additionally, the manual claims processes often led to long turnaround times to approve and settle claims, it said.

In line with aspirations set out in its Financial Sector Blueprint 2022-2026 to go digital, BNM stressed that collaboration both across ITOs and with key parties in the claims value chain would be crucial in reshaping an end-to-end digital motor claims journey. — Bernama