Malaysia to further review ownership rules for foreign insurers

June 14 2018 by InsuranceAsia News Staff

Malaysia is expected to review a directive given to foreign insurers to reduce ownership of their local units by nearly a third due to the difficulty of finding domestic buyers for equity stakes.

Press reports have suggested the review may result in the Malaysian regulator deferring the requirement.

If realised, the deferral would benefit foreign insurers operating in Malaysia, such as Great Eastern, Prudential, Tokio Marine and Zurich by postponing deals worth more than US$2 billion that were being imposed upon them.

Malaysia’s central bank, Bank Negara, had previously announced it would enforce its 2009 rule putting a 70% cap on foreign ownership of local insurance businesses.

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