Credit rating agency RAM Rating has maintained its “stable” outlook for the Malaysia insurance and takaful sectors this year, with expectations that it will stay resilient in the face of market volatilities, a changing insurance landscape, and the normalisation of claims trending back to pre-pandemic levels.
The sector is also expected to absorb potential shocks notwithstanding headwinds, RAM Rating said.
In a report from Malay Mail, the credit agency also forecast an 8% growth for the life and family segment this year, in addition to a recovery in earnings for the life and family takaful sector as risks recede.
That said, there will be no significant movement across the non-life sector, RAM Rating said, as vehicle sales in the country are expected to decline from last year’s all-time high. Competition will also be key this year, thanks to the ongoing structural reforms, the effects of the new accounting standard – called Malaysian Financial Reporting Standard (MFRS) 17 in the country – and increased mergers and acquisitions.
As per a separate forecast report, the country’s life insurance market is set for steady growth in the next few years, with gross written premiums for the sector reaching US$14.9 billion in 2027.
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