Budget 2027: PIAM Calls For Tax Relief, Digital Grants To Close Insurance Protection Gaps

By K. Naveen Prabu

KUALA LUMPUR, Oct 2 (Bernama) -- The General Insurance Association of Malaysia (PIAM) has called on the government to provide tax relief for critical coverage such as business interruption insurance to improve the affordability and accessibility of insurance protection.

PIAM said that the government should also review the implementation of the Sales and Service Tax (SST) on essential protection covers to help reduce the country’s protection gaps.

The association is also seeking targeted tax incentives and technology grants to accelerate digitalisation and artificial intelligence (AI) adoption, particularly among smaller industry players.

PIAM chief executive officer Chua Kim Soon said targeted fiscal measures could help ensure essential insurance protection remains within reach of households and businesses.

"As a data-intensive sector, general insurance relies on modern digital capabilities to sharpen underwriting, prevent fraud, and build long-term climate resilience.

"Implementing targeted fiscal support will help ensure essential protection remains accessible and affordable for Malaysian businesses and households while accelerating our collective readiness for emerging risks," he told Bernama.

PIAM also highlighted climate resilience as a key priority, calling for greater private-sector participation in flood mitigation, climate-adapted infrastructure and other risk-reduction initiatives.

"Rather than viewing these focus areas in isolation, PIAM emphasises that a forward-looking financial ecosystem requires an integrated strategy.

"Upgrading digital infrastructure and data capabilities enhances catastrophe modelling and risk management, allowing the industry to better predict climate hazards and support national adaptation initiatives," it said. 

-- BERNAMA