Malaysia Insurance Market Intelligence: 2011 Edition
The Malaysian insurance industry is in the phase of gradual development. Globalization, coupled with gradual liberalization of the insurance industry, not just creates new market opportunities but also fuels the competition for both life and non-life insurers. Demographic changes like aging population, high medical costs, increasing social affluence has increased the demand of insurance as a both risk protection and savings product in Malaysia.
The growth rate registered by the life insurance sector is higher than non-life insurance in the previous five years. Growth in premium of non-life income has most likely occurred because of the significant rise in non-motor segments, like medical and health, personal accident, as well as liability insurance. Despite being the tenth largest Asian insurance markets in 2009, per capita expenditure on insurance in Malaysia continues to be very low, reason being the varying degree of penetration among different ethnic groups.
Liberalization of Malaysian insurance industry and the growing Bancassurance and Takaful industry are few of the significant factors that will drive growth of the Malaysian insurance industry in the near future.
The growth rate registered by the life insurance sector is higher than non-life insurance in the previous five years. Growth in premium of non-life income has most likely occurred because of the significant rise in non-motor segments, like medical and health, personal accident, as well as liability insurance. Despite being the tenth largest Asian insurance markets in 2009, per capita expenditure on insurance in Malaysia continues to be very low, reason being the varying degree of penetration among different ethnic groups.
Liberalization of Malaysian insurance industry and the growing Bancassurance and Takaful industry are few of the significant factors that will drive growth of the Malaysian insurance industry in the near future.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Significant Regulatory and legislative led to development of insurance sector
1.1.2 One of the Fastest Growing Markets for Insurance Products across Asia
1.1.3 Ranked 10th largest insurance market in Asia and 35th in the world
1.2 Market Overview
1.2.1 Recovery in investment market and economic growth resulted in premium growth over last few years
1.2.2 Alternative distribution channels and regulatory measures improved returns of policyholders
1.2.1 Market Size & Growth
1.2.1.1 Consistent growth in life insurance premiums due to demand in investment-linked products and endowment policies
1.2.2 Market Segments
1.2.2.1 Life Insurance as the Dominant Segment
1.2.2.2 Growth in non-life premiums attributed due to growth in motor, health, accident, liability insurance
1.2.2.3 Motor Insurance as the Largest Segment in Non-Life Insurance Sector
1.2.3 Market Density & Penetration
1.2.3.1 Low Market Density and Penetration Rate compared to other Asian Markets
1.2.3.2 Increasing number of foreign players due to untapped market potential
1.2.4 Market Share
1.2.4.1 Non-Life segment Fragmented and Currently under Consolidation Mode
1.2.5.2 Great Eastern Insurance and Prudential among top life insurers
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Liberalization of Malaysian Insurance Industry
Adoption of New Vehicle Valuation System
Mitsui Sumitomo Links with Hong Leong
2.2 Market Drivers
Rapidly growing Bancassurance
Growth in Motor Insurance Market
Pension Reform and Rising Medical Spending
Growth of Takaful Market
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Announcement of Government’s financial stimulus package surged country’s economic activity
4.2 Recent Grant of new licenses to insurers and Takaful operators drive insurance premiums in future
1.1 Industry Structure
1.1.1 Significant Regulatory and legislative led to development of insurance sector
1.1.2 One of the Fastest Growing Markets for Insurance Products across Asia
1.1.3 Ranked 10th largest insurance market in Asia and 35th in the world
1.2 Market Overview
1.2.1 Recovery in investment market and economic growth resulted in premium growth over last few years
1.2.2 Alternative distribution channels and regulatory measures improved returns of policyholders
1.2.1 Market Size & Growth
1.2.1.1 Consistent growth in life insurance premiums due to demand in investment-linked products and endowment policies
1.2.2 Market Segments
1.2.2.1 Life Insurance as the Dominant Segment
1.2.2.2 Growth in non-life premiums attributed due to growth in motor, health, accident, liability insurance
1.2.2.3 Motor Insurance as the Largest Segment in Non-Life Insurance Sector
1.2.3 Market Density & Penetration
1.2.3.1 Low Market Density and Penetration Rate compared to other Asian Markets
1.2.3.2 Increasing number of foreign players due to untapped market potential
1.2.4 Market Share
1.2.4.1 Non-Life segment Fragmented and Currently under Consolidation Mode
1.2.5.2 Great Eastern Insurance and Prudential among top life insurers
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Liberalization of Malaysian Insurance Industry
Adoption of New Vehicle Valuation System
Mitsui Sumitomo Links with Hong Leong
2.2 Market Drivers
Rapidly growing Bancassurance
Growth in Motor Insurance Market
Pension Reform and Rising Medical Spending
Growth of Takaful Market
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Announcement of Government’s financial stimulus package surged country’s economic activity
4.2 Recent Grant of new licenses to insurers and Takaful operators drive insurance premiums in future
LIST OF CHARTS:
Malaysian Annual Insurance Premiums: 2002-2009
Malaysian Insurance Premium Share (%) by Segment: 2009
Malaysian Insurance Premium by Segment: 2002-2009
Malaysian Life Insurance Premium Share (%) by Segment: 2009
Malaysian Non-Life Insurance Premium Share (%) by Segment: 2009
Malaysian Insurance Density (US$): 2002 – 2009
Malaysian Insurance Penetration Rate: 2002 – 2009
Malaysian Major Life Insurer’s Market Share: 2009
Malaysian Major Non-Life Insurer’s Market Share: 2009
Distribution of Life Products through Bancassurance
Malaysian Total Number of Vehicles Registered: 2002 – 2009
Malaysian Motor Insurance Premium: 2002 – 2009
Net Takaful Contributions: 2003 – 2009
Forecast: Malaysian Insurance Industry: 2009A - 2013F
Forecast: Malaysian Life & Non-Life Insurance Industry: 2009A - 2013F
Malaysian Annual Insurance Premiums: 2002-2009
Malaysian Insurance Premium Share (%) by Segment: 2009
Malaysian Insurance Premium by Segment: 2002-2009
Malaysian Life Insurance Premium Share (%) by Segment: 2009
Malaysian Non-Life Insurance Premium Share (%) by Segment: 2009
Malaysian Insurance Density (US$): 2002 – 2009
Malaysian Insurance Penetration Rate: 2002 – 2009
Malaysian Major Life Insurer’s Market Share: 2009
Malaysian Major Non-Life Insurer’s Market Share: 2009
Distribution of Life Products through Bancassurance
Malaysian Total Number of Vehicles Registered: 2002 – 2009
Malaysian Motor Insurance Premium: 2002 – 2009
Net Takaful Contributions: 2003 – 2009
Forecast: Malaysian Insurance Industry: 2009A - 2013F
Forecast: Malaysian Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Key Macroeconomic Indicators: 2009 – 2014F
Key Macroeconomic Indicators: 2009 – 2014F
