Malaysia’s life insurance registered a 6.9 per cent growth in new business premiums to RM5.9 billion from January to July 2017, supported by the growth of investment-linked policies.
The Ministry of Finance (MoF) said the industry’s new business premiums went up 5.9 per cent to RM5.5 billion in the same period last year.
“The life insurance market penetration rate stood at 39.4 per cent in the first seven months of the year from 40.1 per cent recorded in the same period last year,” it said in its Economic Report 2017/18 released in conjunction with the 2018 Budget announced by Prime Minister Datuk Seri Najib Tun Razak here today.
On claims, the report said life insurance claims rose 6.3 per cent to RM12.9 billion for the January-July 2017 period, up slightly from RM12.1 billion previously,” it said.
On the general insurance sector, the MoF, however, said the gross direct premiums fell marginally by 0.2 per cent to RM10.6 billion in the January-July 2017 period due to lower new subscriptions from the energy segment.
In the same period last year, the sector’s gross direct premiums rose by 0.8 per cent to RM10.7 million.
“However, gross direct premiums for the motor segment grew 2.2 per cent for the first seven months of the year, in tandem with the increase in new car sales.
On new family takaful business, the report said the sector recorded higher gross contributions at 9.8 per cent amounting to RM2.5 billion from January to July this year, up from RM2.3 billion in the same period last year.
“Its market penetration rate stood at 14.6 per cent in the period, up from 14.4 per cent in the first seven months of last year,” it said.
On general takaful sector, the report its gross contributions during the first seven months of the year grew by 6.8 per cent to RM1.5 billion from RM1.4 billion recorded previously.
“Motor and fire classes continued to be the key segment underwritten by the industry, of which these segments accounted for 58.4 per cent and 22.2 per cent of total gross contributions, respectively,” it said.