2014 Key Trends For Life Insurance & Fam­ily Taka­ful In Malaysia

The year 2013 is draw­ing to a close, and while life in­sur­ers and fam­ily taka­ful op­er­a­tors work tire­lessly to close out the year on a strong note, the im­pend­ing hol­i­day sea­son also pro­vides us the op­por­tu­nity to take stock of the in­dus­try as a whole, and t

Insurance - - FOCUS - by Jeremy Lim

The State Of The In­dus­try So Far

The lat­est sta­tis­tics from the Life Insurance As­so­ci­a­tion of Malaysia (LIAM) in­di­cate a 5.9 per cent de­cline in weighted new busi­ness pre­mium sold for the first half of 2013 com­pared to the same pe­riod last year1, due to slow in­dus­try growth. How­ever, LIAM has in­di­cated that the sec­ond half should see an im­proved per­for­mance and growth should be pos­i­tive. For fam­ily taka­ful, while growth has slowed con­sid­er­ably for the first half of 2013 as com­pared to the same pe­riod last year, dou­ble digit growth is still very much in the cards. In­dus­try par­tic­i­pants gen­er­ally still hold an op­ti­mistic out­look of fu­ture growth prospects of fam­ily taka­ful busi­ness. Here at Tow­ers Wat­son, we still see Malaysia as a key growth mar­ket in this re­gion, with an av­er­age 8 per cent per an­num growth up to 2025. This sig­nif­i­cant growth will be un­der­pinned by the bur­geon­ing up­per mid­dle class seg­ment that is reap­ing the ben­e­fits of con­tin­ued favourable eco­nomic con­di­tions, as the gov­ern­ment car­ries out ini­tia­tives to trans­form Malaysia into a high in­come

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