LAIM Forecast 2015

The life insurance industry is expected to record a growth of between 5% and 10% in insurance coverage this year according Life Insurance Association of Malaysia (LIAM). The industry recorded a 6.9% growth in insurance coverage amounting to RM1.17 trillion in 2014 compared with RM1.09 trillion recorded in 2013. Total premium rose 9.3% last year.

The industry does pay out a significant amount, in terms of medical claims and bonuses to customers, which amounted to RM8.42bil last year compared with RM6.94bil in 2013.

Today, the life insurance and family takaful provides insurance protection for 55.5% of the Malaysian population. The Government has set a target that at least 75% of Malaysians should be insured by 2020. Strategies included looking at the rural areas as the concentration now was in urban areas. Possible deployment of a different distribution system, on how to tackle rural residents who have basic insurance coverage.

 

LIAM has 16 members comprising 14 life insurance and two life reinsurance companies.