Friday, June 1, 2012

Life Insurance - 10 % Growth

The life insurance industry in Malaysia is expected to see a 10% growth in premiums this year, based on the regional economic growth, said  Bank Negara Malaysia assistant Governor Donald Joshua Jaganathan. 

 

He said on Monday that Asia was at the forefront of global economic growth, with projected GDP growth of between 7.3% and 7.9% in the next two years and this would bode well for the regional insurance market.

"The Life Insurance Association of Malaysia has projected that the local life insurance industry could grow up to 10% this year. The general insurance sector too, which is closely linked to the economy, is also expected to demonstrate strong growth," he said at the opening of the two-day International Claims Convention 2012.

"It has been forecast that premiums in emerging Asia could potentially grow 9.5% and 11.5% for the life and non-life market respectively," he said.

Jaganathan said a key driving factor of these trends was the large and growing middle-income population in the region with higher levels of disposable income and who are also financially literate.

Another important factor that would contribute to the growth of the insurance sector was demography, where some parts of the region would face an ageing population in years ahead, he said.

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