PIAM hopes for affordable insurance
The central bank is also pushing this initiative and liberalisation is a big component of allowing greater freedom of pricing. Antony Lee, PIAM chairman
KUALA LUMPUR: The General Insurance Association of Malaysia (PIAM) hopes general insurance premiums can be reduced in three to five years, driven by liberalisation efforts put in place by Bank Negara Malaysia and the adoption of financial technology (fintech).
PIAM chairman Antony Lee said by making insurance premiums more affordable, the industry could increase insurance penetration among the lower income group, which was, currently, a large untapped market.
“The central bank is also pushing this initiative and liberalisation is a big component of allowing greater freedom of pricing.
“Furthermore, the adoption of fintech by the insurance industry will also help in cost reduction,” he told reporters after delivering a keynote address at the two2017 International Claims Convention here yesterday.
While fintech development was still in its early days, even globally, Lee said the industry was keen on this emerging trend with some local insurers already commencing pilot initiatives in this field.
On outlook, he expected the general insurance industry to experience tepid growth this year given the slower growth expected in the external environment.
In 2016, he said the general insurance industry grew 1.1 per cent with gross written premium income at RM17.67 billion, underpinned by motor insurance, which maintained its dominant market share of 46.2 per cent.
“Motor insurance growth is directly linked to auto sales and at the moment, we are seeing it growing slightly higher than last year, albeit, not significantly,” he added.
The two-day 2017 International Claims Convention, organised by the Malaysian Insurance Institute, attracted over 150 industry professionals to discuss topical issues and look for new approaches to claims management. — Bernama