Malaysia Life Insurance Projected RM47 Billion

The Malaysian life insurance market is projected to grow from MYR46.7 billion (US$11.6 billion) in 2019 to MYR55.4 billion (US$13.7 billion) in 2023 in terms of gross written premiums, at a compound annual growth rate of 4.4%.Term insurance, endowment and whole life products account for almost 90% of Malaysia’s life insurance business. Rising working-age population and government and regulatory initiatives towards affordable insurance products are among the key factors driving the market’s growth.

As of end-2018, the share of working-age population stood at 66.2%. This offers huge growth potential as 46% of the population still does not own life insurance products. 

Among the other goals the regulator has been pursuing is improving product accessibility. It is now mandatory for life insurers in Malaysia to offer standalone term insurance through their direct distribution channel – either own office or online platform, the report said. Due to their more affordable pricing, it is expected to help insurance adoption.