Friday, April 19, 2024

Malaysia Life Insurance 2023 Growth

The life insurance industry recorded a double-digit growth of 11.6% in new business total premiums to RM13.4 billion last year, compared with RM12 billion in 2022.

Strong Growth - The Life Insurance Association of Malaysia (LIAM) said the growth was driven by the strong performance of group policies (up 14.5% to RM5.1 billion) and investment-linked policies (growing 13.6% to RM6.2 billion). 

The overall new business sum assured saw a 9.4% growth to RM544.4 billion in 2023, from RM497.7 billion in the previous year. New business sum assured of investment-linked policies registered a double-digit growth of 13.4% to RM155.8 billion, followed by that of group policies by 10.3% to RM368.8 billion.

The number of new investment-linked policies rose by 6.8% to 709,378, and new group policies increased by 5.8% to 21,975 last year. New traditional policies recorded a decline of 56.9%, from 1.2 million in 2022 to 496,115 in 2023, resulting in the overall number of policies falling 33.2% to 1.2 million in 2023, compared with 1.8 million in 2022.

Total Premium - LIAM said the total premium in force grew by 5% to RM46.3 billion in 2023, compared with RM44.1 billion in 2022. The number of policies in force of group policies grew by 4.5% to 28,685, followed by investment-linked policies which expanded 4% to 6.7 million, in 2023.

However, traditional policies declined by 9.7%, which contributed to a drop in the total number of policies in force to 3.1% in 2023, amounting to 13 million against 13.4 million in 2022, due to the expiration of the policies issued under the Perlindungan Tenang Voucher Scheme in 2022.

Claims - Total payout surged by 14.9% to RM15.4 billion last year, compared with RM13.4 billion in 2022, primarily driven by a 41.4% hike in disability payment and a 26.2% rise in medical claims.

The surge in claims payout was also due to a high medical inflation rate in Malaysia, and the higher medical claims are expected to add pressure on premium increases going forward, it added.

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