LIFE INSURANCE SECTOR REMAINS HEALTHY

Coverage sum assured amounted to RM1.38tril last year, says LIAM

THE life insurance industry continued its upward trend last year with higher insurance protection for Malaysians, providing coverage amounting to RM1.38 trillion in sum assured for all policies combined.

In a statement, the Life Insurance Association of Malaysia (LIAM) said the amount was six per cent higher than the RM1.3 trillion recorded in 2016.

“The healthy performance of the industry reflects the increasing awareness among Malaysians on the importance of insurance protection,” it said.

LIAM said the industry provided insurance protection to 12.64 million lives last year, a marginal increase of 0.1 per cent from the 12.63 million in 2016.

It said although the per capita sum assured rose to RM42,992 last year from RM41,055 previously, it was still way below the amount needed to support one’s family member in the event of the death or disability of the breadwinner.

LIAM said total premiums for new businesses grew by 3.8 per cent year-on-year (y-o-y) to RM10.11 trillion last year from RM9.74 trillion in 2016.

The premiums for investmentlinked businesses rose 19.4 per cent y-o-y last year compared with 16.4 per cent previously, while premiums for traditional businesses fell 22 per cent y-o-y versus the 20 per cent growth in 2016, it said, adding that group policies maintained a stable growth of 4.9 per cent y-o-y from 4.8 per cent previously.

Additionally, total in-force premiums last year recorded a slight increase of 3.3 per cent y-o-y to RM36.6 billion from RM35.43 billion previously, it said.

LIAM said the life insurance industry also registered an increase of 5.3 per cent y-o-y in claims amounting to RM10.1 billion from RM9.7 billion previously, mainly on higher death and disability claims.