Boston, MA -- (ReleaseWire) -- 06/10/2014 -- BMI View: The latest results of the leading life insurance companies confirms that they are dynamic and innovative. Like other markets in Asia, Malaysia is a country where further development of life insurance will be 'supplier-driven'. In the non-life segment, rising sales of motor vehicle insurance has underpinned a steady rise in premiums over the last year or so. Looking forward, we continue to anticipate a steady rise in premiums in both segments through the forecast period. The process of consolidation will likely continue - particularly in the non-life segment.
As of mid-2014, the insurance sector of Malaysia continues to appear unexciting relative to others in South East Asia. By most metrics, it is growing at single-digit rates. In the non-life segment, a fragmented competitive landscape has, in the past, resulted in brutal price competition which, in turn, has served to constrain the development of non-life penetration. In the life segment, a fairly large number of multi-national players that are quite evenly matched in terms of their overall strengths have also contained pricing power. There has been significant deal-making in the non-life segment and - with AIA's October 2012 purchase of the Malaysian operations of ING - in the life segment also. However, further consolidation is likely.
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Nevertheless, there are many causes for optimism. Takaful is well developed, and accounts for around 15% of overall premiums. There has been a wave of launches of innovative products, which are carefully designed to meet the needs of Malaysian households and businesses. The insurers have been investing heavily to boost the productivity of (often enlarged) agency networks. Bancassurance relationships are being leveraged. The government's Private Retirement Scheme (PRS) will provide new opportunities.
- Life insurance continues to develop steadily from a base which, by some metrics, is quite low.
- The expansion of life insurance is...
The Malaysia Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Malaysia Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Malaysian insurance industry.
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