Malaysia:Life insurance market shows recovery in 3rd quarter

04-Dec-2020 Intellasia | AsiaInsuranceReview | 6:02 AM Print This Post

The Malaysian life insurance industry rebounded strongly in the third quarter of this year, registering a 44 percent increase in total new business premiums to MYR2.92bn ($717m) as compared to 2Q2020, says the Life Insurance Association of Malaysia (LIAM).

The industry registered a modest growth of 6.5 percent in total new business premiums in 3Q2020 compared to 3Q2019.

The positive performance in the third quarter is attributed to an improvement in investment-linked business, which doubled from MYR737.72m in 2Q2020 to MYR1.43bn in3Q2020.

In 2Q2020, the total premium for new business dropped by 37 percent to MYR2.03bn as compared to MYR3.22bn in 1Q2020. The plunge was mainly in the sales of group policies and investment-linked policies which contracted by 56 percent and 25 percent respectively quarter-on-quarter. The second quarter of this year was the most challenging times for businesses in Malaysia including life insurance business as because of the government’s Movement Control Order (MCO) and Recovery Movement Control Order (RMCO), imposed because of COVID-19.

The lockdown started on 18 March 2020 and life insurance sales activities came to a halt as face-to-face selling were restricted for more than three months.

According to LIAM president Ms Loh Guat Lan, the strong third-quarter growth was due to the positive effects of the reopening of the economy and the government’s recovery efforts to revitalise economic activities.

“The pandemic has also increased the awareness among Malaysians on the importance of financial protection as a safety net in facing uncertainties in life,” Ms Loh added. Individual new business premiums also saw an increase of 32 percent in 3Q2020 to MYR733.75m as compared to MYR556.01m in 2Q2020. Group new business premiums recorded a quarter-on-quarter increase of 2 percent to MYR750.51m in 3Q2020.

Outlook

On the overall outlook, the life industry believes that if the positive trends continue in 4Q2020, the sector foresees a modest single-digit growth for 2020.

https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/74868/Type/eDaily/Malaysia-Life-insurance-market-shows-recovery-in-3rd-quarter#

 

Category: Malaysia

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