The Malaysian life insurance coverage market is projected to develop from MYR46.7 billion (US$11.6 billion) in 2019 to MYR55.Four billion (US$13.7 billion) in 2023 by way of gross written premiums, at a compound annual progress fee of 4.4%.
This was revealed in a report by GlobalData, titled ‘Malaysia Life Insurance coverage: Key Developments and Alternatives to 2023’. The report additionally mentioned that time period insurance coverage, endowment and entire life merchandise account for nearly 90% of Malaysia’s life insurance coverage enterprise. Rising working-age inhabitants and authorities and regulatory initiatives in the direction of reasonably priced insurance coverage merchandise are among the many key components driving the market’s progress.
“As of end-2018, the share of working-age inhabitants stood at 66.2%. This provides big progress potential as 46% of the inhabitants nonetheless doesn’t personal life insurance coverage merchandise,” mentioned Sangharsan Biswas, insurance coverage analyst at GlobalData.
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In 2017, the Malaysian authorities launched an reasonably priced insurance coverage scheme, often called “Perlindungan Tenang”, which sought to make life insurance coverage accessible for poorer segments of the inhabitants. Since then, main insurers akin to Allianz, Solar Life, and Gibraltar BSN have launched micro-insurance merchandise to faucet into this phase. Many of those choices additionally harness cell and digital channels, as a result of widespread adoption of smartphones and different gadgets within the nation.
Malaysia’s insurance coverage regulator and trade associations are working to advertise insurance coverage consciousness, the report mentioned. In 2019, a nationwide technique plan for monetary literacy was launched to implement a large-scale consciousness marketing campaign.
Among the many different objectives the regulator has been pursuing is enhancing product accessibility. It’s now obligatory for all times insurers in Malaysia to supply standalone time period insurance coverage via their direct distribution channel – both personal workplace or on-line platform, the report mentioned. As a result of their extra reasonably priced pricing, it’s anticipated to assist insurance coverage adoption.
“With give attention to enhancing accessibility of insurance coverage within the nation, insurers will use know-how to broaden their attain and likewise supply reasonably priced merchandise,” Biswas mentioned.