Malaysian Insurance Sector to See Growth and Consolidate Further |
Posted: June 15, 2017 |
Malaysia’s insurance industry is undergoing a huge transformation to provide support to the country’s economic development. The insurance industry of Malaysia as is expected to see better growth in 2017 as compared to 2.5% to 3.5% growth anticipated in 2016. The industry may also see further consolidation in the future for boosting efficiency and resiliency of local insurers. Malaysian Insurance Industry: Growth Factors
Malaysian Insurance Industry: Consolidation The insurance industry of Malaysia has been in the headlines of top online insurance news portals because of growing interest of insurers in consolidation. The Malaysian insurance industry has taken various measures in the recent years such as removal of commission limits, product disclosure in sales documents, and compulsory direct channel distribution. These measures have helped to increase professionalism and transparency in the industry, while providing insurers the flexibility to tailor their cost structures to match up with competitive strategies. Now, local insurers are exploring collaborative efforts in order to improve overall insurance penetration, and reduce existing protection gaps. Composite insurers are required to split their life and non-life businesses by 2018. This might make them struggle with capitalisation requirements, and they will likely seek external investments in the form of mergers and acquisitions. Despite benign economic outlook in Malaysia, the insurance industry will see growth with rise in consumer confidence, increase in spending by government and consolidation efforts taken by insurers. Want the latest insurance news in Malaysia first? Visit http://www.piam.org.my/ for latest news and reports related to the insurance industry.
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