The life insurance industry in Malaysia is expected to achieve a high single-digit growth rate for this year, according to the Life Insurance Association of Malaysia (LIAM).
LIAM president Toi See Jong attributed the positive performance of the sector to the country’s improving economic growth.
“Malaysia’s gross domestic product is forecast to hit between 4.3% and 4.9% this year. So, the life insurance industry will grow in line with the country’s economic growth,” he told state press agency Bernama during the LIAM Hari Raya open house held in Kuala Lumpur on Wednesday.
In 2016, new business premiums grew to MYR9.75 million (US$2.27 million), a 6.9% year-on-year increase.
Toi added that the addition of an online platform, which launched on Janueary 01, is likely to provide a boost the industry’s growth this year. However, online sales still remain relatively small, as it was just in the initial stage of implementation.
“As insurance policies are quite complex, we believe agents still play a vital role in explaining the insurance products,” he said.
In order to increase awareness of insurance among Malaysians and close the protection gap, Toi said that there should be more focus on various educational and promotional programmes.