More growth in Malaysian insurance sector

July 21 2017 by InsuranceAsia News Staff

Malaysia’s life insurance industry is expected to further grow on the back of the country’s improved economy.

According to the Life Insurance Association of Malaysia (LIAM), the sector is projected to post a high single-digit growth in 2017 in terms of new business premiums.

LIAM President Toi See Jong said the industry will be riding on the country’s gross domestic product growth, which is likely to hit between 4.3% and 4.9% this year.

Toi made the remark on the sidelines of the LIAM Hari Raya open house in Kuala Lumpur.

Last year, new business premiums in the industry increased by 6.9% year-on-year to M$9.75 billion (US$2.27 billion).

A key driver of growth in the sector was the implementation of an online platform from January 1, this year.

The Life Insurance and Family Takaful Framework, introduced by Bank Negara Malaysia, had specified that term products will be available through direct channels starting January.