Kuala Lumpur:The General Insurance Association of Malaysia (PIAM) is urging the government to introduce tax relief for critical insurance coverage, such as business interruption insurance, to make insurance protection more affordable and accessible.

According to BERNAMA News Agency, PIAM is also recommending a review of the Sales and Service Tax (SST) on essential protection covers to help close the country's protection gaps. Furthermore, the association is advocating for targeted tax incentives and technology grants to promote digitalization and artificial intelligence (AI) adoption, especially among smaller industry players.

PIAM's chief executive officer, Chua Kim Soon, emphasized that targeted fiscal measures are crucial for ensuring essential insurance protection remains accessible to households and businesses. He noted that, as a data-intensive sector, general insurance depends on modern digital capabilities to enhance underwriting, prevent fraud, and build climate resilience.

PIAM is also focusing on climate resilience, urging greater private-sector involvement in flood mitigation and climate-adapted infrastructure initiatives. The association stresses the importance of an integrated strategy in developing a forward-looking financial ecosystem, highlighting that upgrading digital infrastructure and data capabilities can improve catastrophe modeling and risk management. This, in turn, would allow the industry to better predict climate hazards and support national adaptation efforts.