Malaysia's life insurance industry is set to record high single-digit growth in terms of new business premiums this year, the Life Insurance Association of Malaysia (LIAM) has said.
LIAM President Toi See Jong said the positive performance would be mainly supported by the better economic growth of the country, reported Bernama News Agency.
“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 said.
Last year, new business premiums in the industry rose by 6.9% year-on-year to MYR9.75 million (US$2.28 million).
Mr Toi said the implementation of an online platform since 1 January this year would also help improve growth of the industry.
The Life Insurance and Family Takaful Framework (Life Framework) introduced by Bank Negara Malaysia, stipulates that term products be available through direct channels from 1 January. This is to be followed by critical illness and medical and health insurance/takaful products by 1 January 2018.
However, Mr Toi said the premiums contributed by the online platform are still small, because the platform is at the initial stage of implementation.
He stressed that various educational and promotional programmes are still needed to further increase insurance awareness and narrow the insurance protection gap.