, Malaysia
446 views
/Malaysian Re

Malaysian Re identifies key trends in regional insurance

The health insurance sector sees growth amid rising risk awareness

Three key trends are influencing the insurance market, not just in Malaysia, but regionally. These trends could make or break Malaysia’s overall insurance penetration rate, which stood at 5% in 2022. The life insurance penetration was higher at 3.7%, and non-life insurance was lower at 1.3%. 

Mainly, insurers in Southeast Asia are reevaluating their customer journey, Malaysian Re revealed in its recent report. Transformation is inevitable where insurance offering is bundled with preventive solutions and possibly value-added services. 

“Second, insurance is embedded or combined with other lifestyle-based propositions to enhance experience and add value. And third, insurers are entering partnerships to expand their outreach and embed their product with a broader experience tailored to the interests  of the customer,” Malaysian Re’s fifth edition of its annual Malaysian Insurance Highlights (MIH 2024) revealed. 

The report further examined the impacts of the evolving risk landscape on Malaysia’s insurance market, particularly focusing on personal insurance lines. 

The lack of adequate coverage leaves many vulnerable to financial shocks from disasters or life events, with only 41% of the population holding life insurance policies. This discrepancy is exacerbated by the predominant use of life insurance as an investment vehicle rather than for risk protection.

The COVID-19 pandemic has increased awareness of the need for insurance, prompting a notable rise in new life insurance premiums and policies in 2021. Despite this, challenges persist in ensuring broader coverage across socioeconomic groups.

Malaysia's family takaful sector has seen robust growth, with total premiums increasing nearly 50% in 2021, driven largely by investment-linked products.

Efforts to enhance insurance uptake may require targeted regulatory interventions to address affordability and awareness barriers, crucial for safeguarding both individuals and businesses against unforeseen risks.

Key issues in the country also include the insurability of climate-related risks, advancements in catastrophe modelling, and growth opportunities in health insurance. 

The report highlights public awareness of insurance benefits amid growing uncertainties, though affordability remains a challenge. Insights were gathered from industry experts, emphasising the need for technological, climatic, and socio-economic risk responses.

Malaysian Re collaborated with Faber Consulting AG for this edition.

 

Follow the link s for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

APAC emerges as leader in renewables insurance
RE is projected to account for 45% of global electricity generation by 2030.
Insurance
IFRC-DREF triggers insurance payout after disaster relief demands exceed threshold
The policy provides up to $16.92m in coverage.The International Federation of Red Cross and Red Crescent Societies' Disaster Response Emergency Fund (IFRC-DREF) has triggered its first-ever insurance payout after disaster relief demands exceeded its deductible threshold. 
Insurance