Malaysia: New life business premiums surge 21% to US$594 mln in 1H
Source: Asia Insurance Review | Oct 2016
The Malaysian life insurance industry registered a 20.8% growth in new business weighted premiums in the first half of 2016 to MYR2.44 billion (US$594 million), according to the Life Insurance Association of Malaysia (LIAM).
Traditional life insurance business, which grew at 39.3%, outpaced investment-linked business which achieved a respectable 8.0% growth rate.
Gross sum assured for all new individual policies combined hit MYR53.5 billion for the first half of this year compared with MYR45.2 billion in the first half of 2015. Investment-linked business grew faster in terms of gross sum assured compared with traditional life insurance with growth rates of 21.9% and 6.5% respectively.
For the first half of 2016, the life insurance industry paid out higher claims amounting to MYR4.82 billion compared with MYR4.09 billion in the same period of 2015. The industry as a whole saw a 17.8% increase in benefit payments for death, disability, medical, bonuses and others.
LIAM said the increase in benefit payments came from all types of claims except disability claims. The industry also paid out MYR1.86 billion in bonuses, as a result of surpluses in life funds.
“On the new business mix, despite the strong growth in traditional life business, investment-linked business continues to be dominant over traditional life business.
“Overall investment-linked business contributed 53% of the new business weighted premiums with the remaining 47% made up of traditional life insurance business,” LIAM said.