SINGAPORE, Dec 16 (Bernama-BUSINESS WIRE) — AM Best is maintaining a stable outlook on Malaysia’s non-life insurance segment, citing regulatory initiatives designed to increase insurance penetration and phased de-tariffication of motor and fire insurance.
The Best’s Market Segment Report, “Market Segment Outlook: Malaysia Non-Life Insurance,” states that the non-life sector remains well-positioned for continued growth, even as the country’s real GDP growth is forecast to moderate in the near term amid global economic headwinds. Bank Negara Malaysia, the country’s central bank and lead regulator, continues to prioritise broader insurance and takaful penetration, currently in the low single digits for non-life. Additional insurance market growth drivers include an expected rising demand for digital insurance and natural catastrophe coverage, along with premium rate hikes driven by high inflation and increasing claims frequency. The report also notes that tariff liberalisation should drive product innovation, improve service quality, align pricing with underlying risks, and enhance market efficiency.