SINGAPORE, Dec 19 (Bernama-BUSINESS WIRE) — AM Best has maintained its outlook on Malaysia’s non-life insurance segment at stable, citing expectations of solid premium growth and the maintenance of underwriting and pricing discipline maintained amid the phased de-tariffication of motor and fire businesses.
The Best’s Market Segment Report, “Market Segment Outlook: Malaysia Non-Life Insurance,” states that total non-life gross premiums written in 2022 rose 11.7% year over year to MYR 24.5 billion (USD 5.3 billion), with 31% of the growth coming from the general takaful segment. The increase was attributed to the recovery in most lines of business, particularly motor, fire and personal accident, after the lifting of the pandemic-related measures. Over the near to medium term, premium growth will be supported by sustained economic recovery and increased insurance penetration due to government initiatives, greater awareness of the importance of insurance protection and the growing demand for digital insurance and takaful products. AM Best also notes that since implementation of the phased de-tariffication on these lines of business, Malaysia’s non-life segment has seen an uptick in pricing competition, which is likely to pressure pricing over the near to medium term; however, in the long term, de-tariffication is seen as helping to strengthen the sustainability of the insurance industry.
