Malaysia: Non-life market to see continued subdued growth
Source: Asia Insurance Review | Mar 2018
The general insurance sector has continued to be resilient in 2017, posting a 0.1% decrease in GWP to MYR17.65 billion (US$4.5 billion) for 2017, helped by positive growth in the second half of the year.
However, the sector earned profits of MYR1.05 billion in 2017, a reduction of MYR478 million from MYR1.52 billion in 2016, according to General Insurance Association of Malaysia.
Motor and fire insurance were two classes of insurance that contributed positively to premium growth. Motor insurance premiums increased by 1.9% to MYR8.32 billion, due to a decrease in new car sales last year. Motor maintained its dominant market share of 47.1%. Fire insurance rose 4.2% to MYR3.41 billion in 2017.
Drop in MAT and PA insurance
However, there was a double-digit drop in Aviation and Marine Transit Insurance (MAT) and Personal Accident Protection (PA). MAT declined 14.6% to MYR1.34 billion owing to the weak oil and gas sector. PA insurance registered a drop of 12.6% to MYR1.13 billion.
PIAM expects flat premium (GWP) growth this year in anticipation of a challenging business climate amid uncertainties about the country’s economic growth and the impending general election.
PIAM Chairman, Antony Lee said: “We would be happy if we get the lowest side of single-digit growth in the range of 0% to 3%.” A