The Malaysian insurance market is expected to grow by 5.8 per cent annually over the next decade, in tandem with global growth which is anticipated to climb to almost six per cent over the next ten years.
This recovery mirrored the return of the global economy to normal growth and inflation rates, Alliainz SE Chief Economist, Michael Heise said in a statement today.
“Over the next ten years, the total premiums for global insurance penetration, as a percentage of gross domestic product, should rise to 5.8 per cent in 2027 from 5.6 per cent in 2016.
“This increase is almost entirely due to emerging markets,” he said.
Malaysia, however, behaved rather like a mature market with stable or even slightly declining insurance penetration, he added.
In Malaysia, the lead of the life insurance segment would be much less pronounced (5.8 per cent versus 5.6 per cent), as the rapid expansion of life insurance market reflects the huge pent-up demand, as well as political support for private provisions in the region.
Speaking of the life insurance market in Asia, Heise said it would be extraordinary over the coming years as in 2050, more than half of the global population aged 80 years and above would be in Asia.
He expected new technologies such as digitalisation would unveil more attractive insurance products for people in the future.
— BERNAMA (07 July 2017)