Malaysian Life insurance records positive growth

The Life Insurance Association of Malaysia (LIAM) has noted that the life insurance industry provided insurance coverage amounting to MYR1.24 trillion (USD302 billion), compared to with MYR1.17 trillion in 2014, in sum assured for all policies combined in 2015.

LIAM president Toi See Jongsaid this performance reflects the awareness of Malaysians about the importance of insurance protection.

As a whole, the life insurance industry provided insurance protection to 12.5 million lives in 2015, an increase of 129,015 when compared with 2014. However, the per capita sum is still well below the amount needed to support one family member in the event of the death or disability of the breadwinner.

Meanwhile, the government’s vision is to achieve a 75 percent penetration rate by 2020 and reduce the protection gap among Malaysians.

LIAM said it remains optimistic despite the challenges, adding that the strong focus by Bank Negara Malaysia and the industry to increase insurance penetration rates, along with the Life Insurance and Family Takaful Framework (LIFE Framework), which came into force in November 2015, will drive growth and change the landscape of the insurance industry in the near future.