Insurance industry summary

EARLIER this month, the General Insurance Association of Malaysia (PIAM) shared insights on the industry’s performance in 2017.

On the whole, it reported gross written premiums totalling RM17.65 billion although growth was said to be stagnant compared to the year before. A positive swing in Q2 helped the industry bounce back from its 1.9% decline in the first six months. The two insurance classification types that registered growth were Motor and Fire, while Marine Aviation and Transit (MAT) and Personal Accident were said to be responsible for weighing down industry performance.

Although Motor Insurance reported improved figures, statistics published by the Transport Ministry recorded an alarming increase in fatalities on the road caused by road accidents. With that, PIAM chairman Antony Lee said that the association will collaborate with all major stakeholders to reduce road accidents nationwide. According to Lee, heavy and commercial vehicles are a cause for concern in road accidents and fatalities.

Lee also expressed his pleasure to work with the Kejara System. “The information on errant and high-risk drivers is useful, and with the liberalisation of the Motor Tariff, information on traffic offenders will help insurers determine the risk profile and identify bad and risk-taking drivers and incentivise the good ones,” he said.

While the number of motor thefts reduced, Medical and Health Insurance claims rose. The association announced that it expects medical insurance premiums to increase by 15% each year due to the increase in chronic and lifestyle diseases, coupled with high inflation rates impacting the prices of drugs and treatment.

With that, PIAM has taken into consideration inflation and the price tag that comes with insurance policies.

Visit PIAM’s website to learn of some of the “new products”, “enhanced features”, including the “Phased Liberalisation of the Motor Tariff”, which since launch, has offered 31 new Motor and 22 new Fire “products” to provide consumers with better protection.

Get updated on the revised Customer Service Charter, which is said to make insurance more accessible and provides timely, transparent and better service to customers.

While the industry this year is expected to be challenging, given the uncertainties prevailing in the area of global environment, PIAM expects growth to remain subdued.

Visit www.piam.org.my for more information and industry insights.