Saturday, November 18, 2017

Malaysia’s new motor insurance pricing scheme starts

Malaysia’s insurance industry will see stiffer competition in motor insurance premiums as the liberalisation of tariff sets in.

However, the association of insurance companies does not believe a price war will ensue.

Anthony Lee, chairman of the General Insurance Association of Malaysia, said it is unlikely that the financial impact on motor insurers will be that significant because efforts to liberalise pricing in the industry will be done in stages.

This will ensure that no market instability will occur.

The liberalisation will usher in a period of more flexibility in pricing motor insurance for comprehensive insurance on the part of the players.

The new pricing scheme for motor insurance took effect last week.

Lee said that the market is being introduced to a more equitable mode of charging premiums as Malaysia morphs into a more developed nation.

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Zainudin Ishak, Malaysian Re

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