MALAYSIA: NON-LIFE GWP HIT US$4.9 BLN IN 2013
The Malaysian general insurance industry recorded a growth of 6.4 percent in gross written premiums to MYR16.2 billion (US$4.94 billion) last year, compared with MYR15.2 billion in 2012. In a statement, the General Insurance Association of Malaysia (PIAM) attributed the growth to relatively strong domestic demand, supported by ongoing mega projects, and increased consumer awareness of business and personal risks. The motor insurance sector grew by 7.8 percent in gross premiums to MYR7.5 billion, in tandem with the increase in the number of new vehicles registered during the year, which had exceeded 655,793 units. Fire insurance rose by 8.6 percent to MYR2.79 billion, while medical and health insurance improved to MYR912 million. PIAM chairman, Mr Chua Seck Guan, said that despite moderate economic growth in the country, the general insurance industry still managed to grow because of sustained income growth of middle-class consumers and from an increase in domestic and foreign direct investments. Going forward, he said the industry is projected to be on a firm expansion path this year. "Growth will be supported by domestic demand which is projected to grow by 6.9 percent this year. "The upward trend in the Consumer Price Index inflation is also expected to drive organic growth as consumers review their sums insured to avoid underinsurance," he said.