Malaysia Insurance Report Q1 2016
BMI View: In spite of the maturity of some products in the life segment, the impact of price competition inthe motor vehicle sub-sector and the challenges posed by a sluggish economy, the prospects for Malaysia'sinsurance sector remain bright. In both segments, there is evidence of innovation, productive distributionpartnerships and growth through insurers reaching new users.
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We look for growth in gross life insurance premiums to slow over the course of the forecast period fromwell over 5% in 2015 to just above 4% in 2019. A better indication of the substantial opportunities is the8% or so rise in overall sum insured within the life segment, which accounts for about two thirds of allpremiums written in Malaysia. Life insurance is well established as a conduit for organised savingsamong those households who understand it and value it: many of them are moving from contributingpremiums to drawing down benefits. Nevertheless, the world class life insurers who dominate thesegment are leveraging their various strengths to reach first time customers. Most of the majors havereported strong growth in new business premiums, value of new business or some other metric throughH115, if not necessarily in gross premiums written.
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