Malaysia Life Insurance Industry Saw 14% Growth In New Premiums In 2019
Author Avatar

liam logo 2

The local life insurance industry registered a 14.19% increase in new business premiums in 2019, rising from RM10.3 billion in 2018 to RM11.8 billion last year. The figure was disclosed by the Life Insurance Association of Malaysia (LIAM).

According to the association, the increase was propelled by the robust growth in traditional business, investment-linked, and group business insurances. These insurance segments each increased by 30.12%, 11.05%, and 10.79%, respectively. Investment-linked policies, in particular, continued to be a popular product in 2019.

LIAM further added that the new policies issued in 2019 recorded an increase of 6.22% from 1.23 million policies in 2018 to 1.32 million policies in 2019. In total, the number of policies registered for the whole industry rose marginally from 12.67 million in 2018 to 12.74 million in 2019.

“The healthy performance of the life insurance industry reflects the increase in awareness among consumers on the importance of life insurance protection,” said the association.

LIAM also reported that the figure for new business sum assured has increased in 2019, rising from RM452.1 billion in 2018 to RM483.4 billion in 2019. This translates to a 6.91% growth.

liam loh guat lan

(Image: The Star)

The average sum assured for individual policy category, on the other hand, reached RM130,000 per policy holder. However, LIAM president Loh Guat Lan commented that the figure is not an adequate level of protection as there is still a wide protection gap in terms of the coverage required.

“Based on a study conducted by Universiti Kebangsaan Malaysia and LIAM in 2013, it is estimated that a family of five would need at least RM550,000 to meet their living expenses over the next five years, in the event of a loss of the breadwinner,” said Loh.

LIAM also noted that the total premiums in force as of last year stood at RM36.9 billion, rising by 7.39% from RM34.4 billion in 2018. The growth was mainly attributed to investment-linked and employee benefit schemes under group businesses. Additionally, the total sum assured in force increased to over RM1.63 trillion, up 7.83% from RM1.51 trillion in 2018.

mark odell liam

(Image: The Star)

In terms of total claims payout, the figure has also increased from 10.8 billion in 2018 to RM11.9 billion, up by 10.19%. According to the chief executive officer of LIAM, Mark O’Dell, medical and health insurance is the highest category of claims, making up 41% of the claims paid. This amounted to RM4.94 billion, which is an increase of 20.82% from RM4.09 billion in 2018.

Going forward, LIAM believes that the industry can hit a high single-digit growth, despite the negative economic impact brought on by the Covid-19 pandemic. It believes that this is possible given the strong resilience of the industry and the low insurance penetration rate in Malaysia.

(Source: The Star, The Edge Markets)

0 0 votes
Article Rating


Comments (0)

Notify of

Inline Feedbacks
View all comments
Top Insurance Articles
Post Image
Government and Private Hospitals in Malaysia: How Much Do They Really Cost?
The RinggitPlus Team
- 2nd January 2018
We keep hearing that government hospitals are cheaper than the private ones, but what’s the price difference really like? Keep reading to find out!
Post Image
How To Claim Income Tax Reliefs For Your Insurance Premiums
Alex Cheong Pui Yin
- 7th April 2022
There are quite a few types of tax reliefs that you can claim to reduce your chargeable income […]
Post Image
The First Cancer Rider Offering Treatment Allowance & Hospice Care In Malaysia By Takaful IKHLAS
Katrina Balan Quiroz
- 1st July 2021
Around the world, Malaysia included, cancer has remained as one of the leading causes of death. Last year, […]
Post Image
Cancer Treatment In Malaysia: How Much Does It Cost?
The RinggitPlus Team
- 2nd October 2018
Many know the devastating effects of cancer, but few talk about just how expensive cancer treatment costs can be.

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image