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Intelligent Claims Automation Is Reshaping Malaysia’s Insurance Sector

Malaysia, drawn by its strong economic growth, expanding middle-class income and rising insurance penetration levels, is witnessing a new era of innovation – with AI leading the charge in bringing new and intelligent technologies to the mass-market.

According to Bank Negara, the country’s regulator of banks and insurers, life insurance penetration rate stood at 56% in 2018. Foreign insurers have been highly keen in this market despite lingering regulatory uncertainty over the sector’s foreign ownership rules, currently set at a 70% cap.

While ‘motor’ remains the largest class of insurance with a market share of 45.6%, followed by fire at 19.2% and marine, aviation and transit (MAT) at 8.2%; Takaful has been outpacing conventional insurance in the Islamic peninsula.

(Takaful refers to Islamic insurance products.)
Islamic insurance penetration rate in the country will likely touch 16% in 2019. In financial dealings, ‘takaful’ firms follow religious guidelines including bans on interest and monetary speculation and a prohibition on investing in industries such as alcohol and gambling.

Growth in the takaful business in Malaysia, the world’s second largest Islamic insurance market after Saudi Arabia, is backed by government efforts to reach out to the general consumer with affordable insurance coverage and the potential use of better technology as a disruptor.

AI is already poised to play a crucial role in Malaysia’s next big step. By 2021, Artificial Intelligence will allow the rate of innovation to almost double (1.8x) and increase employee productivity improvements by 60% in Malaysia, according to an AI study put forth by Microsoft & IDC-ASEAN Research Group.

While seven in 10 business leaders polled agreed that AI was instrumental for their organisation’s competitiveness, only 26% have embarked on their AI journeys. Those that have adopted AI expect it to increase their competitiveness by 2.2 times in 2021. Though, everyone agrees – every single interaction from here on is going to be digital.

Mckinsey Claims Automation Benefits

Malaysia is also moving towards a cashless society with infrastructure being put into place to facilitate e-payments which have more than doubled per capita from 2011 to 2019. For this, banking solutions in the region have ramped up digital investments so customers can take advantage of convenient and secure banking.

Intelligent Claims Automation

For insurers, claims settlement represents a large customer service touch point. However, taking a customer seamlessly through the claims resolution process is not always going to be simple.

Being an AI-driven insurtech enterprise means being able to fully utilize data and optimize business processes with powerful algorithms, creating the space for data-driven decision making. With AI, the claims process can be augmented using chatbots to convey support and status of a claim, and Machine Learning (ML) that can study large-volume patterns to reveal insights and detect fraud. Claims automation can be achieved at part or whole of the settlement process.

Claims Management Process

The Malaysian Insurance market is already witnessed to big insurers rolling out innovative products for customers, such as “Ask Sara” – AIA’s AI-powered enquiry channel that provides instant, real-time answers to agents anytime via Facebook Messenger. Integrating sensors into the value chain has also provided greater rewards with predictive modelling and data analytics, like Katsana – a telematics company that is enabling insurers to provide usage-based insurance based on driver’s performance data. These measures allow for safer, accurate and more affordable risk-based pricing for consumers.

The attitudes of the insurers and younger generations are shifting alongside their Asian peers, to a seemingly more AI-involved future. While the general insurance trade has witnessed nearly stagnant growth over the past several years, AI can help lower overheads and variable costs that will enable insurers to roll out affordable coverage, including to the under-served segment.


Enterprises benefit from our AI-first thinking.
We build AI roadmaps from scratch, guiding you all the way through your next transformational journey.

To learn how, drop us a line here: hello@mantralabsglobal.com


International Insurance Landscape

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Silent Drains: How Poor Data Observability Costs Enterprises Millions

Let’s rewind the clock for a moment. Thousands of years ago, humans had a simple way of keeping tabs on things—literally. They carved marks into clay tablets to track grain harvests or seal trade agreements. These ancient scribes kickstarted what would later become one of humanity’s greatest pursuits: organizing and understanding data. The journey of data began to take shape.

Now, here’s the kicker—we’ve gone from storing the data on clay to storing the data on the cloud, but one age-old problem still nags at us: How healthy is that data? Can we trust it?

Think about it. Records from centuries ago survived and still make sense today because someone cared enough to store them and keep them in good shape. That’s essentially what data observability does for our modern world. It’s like having a health monitor for your data systems, ensuring they’re reliable, accurate, and ready for action. And here are the times when data observability actually had more than a few wins in the real world and this is how it works

How Data Observability Works

Data observability involves monitoring, analyzing, and ensuring the health of your data systems in real-time. Here’s how it functions:

  1. Data Monitoring: Continuously tracks metrics like data volume, freshness, and schema consistency to spot anomalies early.
  2. Automated data Alerts: Notify teams of irregularities, such as unexpected data spikes or pipeline failures, before they escalate.
  3. Root Cause Analysis: Pinpoints the source of issues using lineage tracking, making problem-solving faster and more efficient.
  4. Proactive Maintenance: Predicts potential failures by analyzing historical trends, helping enterprises stay ahead of disruptions.
  5. Collaboration Tools: Bridges gaps between data engineering, analytics, and operations teams with a shared understanding of system health.

Real-World Wins with Data Observability

1. Preventing Retail Chaos

A global retailer was struggling with the complexities of scaling data operations across diverse regions, Faced with a vast and complex system, manual oversight became unsustainable. Rakuten provided data observability solutions by leveraging real-time monitoring and integrating ITSM solutions with a unified data health dashboard, the retailer was able to prevent costly downtime and ensure seamless data operations. The result? Enhanced data lineage tracking and reduced operational overhead.

2. Fixing Silent Pipeline Failures

Monte Carlo’s data observability solutions have saved organizations from silent data pipeline failures. For example, a Salesforce password expiry caused updates to stop in the salesforce_accounts_created table. Monte Carlo flagged the issue, allowing the team to resolve it before it caught the executive attention. Similarly, an authorization issue with Google Ads integrations was detected and fixed, avoiding significant data loss.

3. Forbes Optimizes Performance

To ensure its website performs optimally, Forbes turned to Datadog for data observability. Previously, siloed data and limited access slowed down troubleshooting. With Datadog, Forbes unified observability across teams, reducing homepage load times by 37% and maintaining operational efficiency during high-traffic events like Black Friday.

4. Lenovo Maintains Uptime

Lenovo leveraged observability, provided by Splunk, to monitor its infrastructure during critical periods. Despite a 300% increase in web traffic on Black Friday, Lenovo maintained 100% uptime and reduced mean time to resolution (MTTR) by 83%, ensuring a flawless user experience.

Why Every Enterprise Needs Data Observability Today

1. Prevent Costly Downtime

Data downtime can cost enterprises up to $9,000 per minute. Imagine a retail giant facing data pipeline failures during peak sales—inventory mismatches lead to missed opportunities and unhappy customers. Data observability proactively detects anomalies, like sudden drops in data volume, preventing disruptions before they escalate.

2. Boost Confidence in Data

Poor data quality costs the U.S. economy $3.1 trillion annually. For enterprises, accurate, observable data ensures reliable decision-making and better AI outcomes. For instance, an insurance company can avoid processing errors by identifying schema changes or inconsistencies in real-time.

3. Enhance Collaboration

When data pipelines fail, teams often waste hours diagnosing issues. Data observability simplifies this by providing clear insights into pipeline health, enabling seamless collaboration across data engineering, data analytics, and data operations teams. This reduces finger-pointing and accelerates problem-solving.

4. Stay Agile Amid Complexity

As enterprises scale, data sources multiply, making Data pipeline monitoring and data pipeline management more complex. Data observability acts as a compass, pinpointing where and why issues occur, allowing organizations to adapt quickly without compromising operational efficiency.

The Bigger Picture:

Are you relying on broken roads in your data metropolis, or are you ready to embrace a system that keeps your operations smooth and your outcomes predictable?

Just as humanity evolved from carving records on clay tablets to storing data in the cloud, the way we manage and interpret data must evolve too. Data observability is not just a tool for keeping your data clean; it’s a strategic necessity to future-proof your business in a world where insights are the cornerstone of success. 

At Mantra Labs, we understand this deeply. With our partnership with Rakuten, we empower enterprises with advanced data observability solutions tailored to their unique challenges. Let us help you turn your data into an invaluable asset that ensures smooth operations and drives impactful outcomes.

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