The Malaysian life insurance sector posted a growth of 5.6% in 2022, equivalent to RM1.9 trillion (US$430.1 billion), according to the Life Insurance Association of Malaysia (LIAM).
LIAM president Loh Guat Lan said that the sector’s uptick is proof of its continued resilience, with the country adapting to new market conditions and meeting the needs of customers despite the challenges brought by the global pandemic.
In a report from Free Malaysia Today, Lan said that the total in force premium grew by 3.5% last year to RM44.1 billion.
“(The) overall new business sum assured increased to RM497.7 billion in 2022, an increase of 8% from RM461.1 billion in 2021. However, the number of new policies issued fell slightly by 2.1% to 1.8 million compared with 1.9 million in 2021,” she said.
Impressive growth aside, not all aspects of the sector experienced a boom. For instance, total premium from new businesses showed a decline of 6.5%, while the industry experienced an increase in claims payouts of 12.7%, equivalent to RM13.4 billion. These higher instances of payouts were due to the rise of medical and disability claims.
As a major emerging sector for APAC, the Malaysian insurance sector continues to make strides. A few weeks ago, the minister for domestic trade said that cheaper insurance coverage is being considered through the Rahmah scheme to help insure the bottom 40% (B40) group of the populace.
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