Malaysia: Insurers' top line most affected by COVID-19
Source: Asia Insurance Review | Apr 2021
Insurance lines closely linked to GDP growth and exports such as motor or trade credit and marine have been directly affected by the pandemic.
However, Malaysia’s general insurance market did better than the overall economy last year. While Malaysia’s GDP is estimated to have declined by 4.5% in 2020, general insurance premiums remained almost stable compared to 2019.
This is one of the findings of the second edition of the Malaysian Insurance Highlights, a market survey launched by Malaysian Re last month.
Malaysia’s insurers produced strong underwriting results as the decline in activity due to ongoing lockdown measures resulted in a decline in loss ratios especially in motor, travel and health.
The introduction of a risk-based capital regime also paid off as during the pandemic the industry’s performance remained robust. A