GENERAL INSURANCE INDUSTRY RECORDS 5.7% GROWTH IN
GROSS PREMIUMS FOR 1H 2013
Motor Insurance Remains The Largest Contributor Of Gross Premiums
Kuala Lumpur, October 29, 2013 – The general insurance industry received a total of RM 8.334 billion in gross premiums for the period January to June 2013 compared to RM7.881 billion over the same period in 2012. This represents a 5.7 per cent growth from the same period last year.
In terms of market share for the general insurance industry, motor insurance accounted for the largest slice of the pie with 44.4 per cent; while fire recorded 17.6 per cent share; and Marine, Aviation and Transit (MAT) registered 10.8 per cent. Personal Accident (PA) was at 7.4 per cent; Medical and Health Insurance (MHI) accounted for 6.7 per cent; Contractors All Risk and Engineering (CAR and ENG)registered 3.3 per cent; and Liabilities with 3.5 per cent share followed by Workmen’s Compensation and Employer’s Liability (WCEL) at 1.5 per cent. Other classes of general insurance contributed 4.8 per cent.
According to a report by the Insurance Services Malaysia Berhad, the Net Claims Incurred Ratio for the general insurance industry registered a slight improvement to record claims incurred at 58.2 per cent compared to 58.8 per cent over the same period in 2012. However, the overall Combined Ratio had a slight increase from 88.1 per cent in 2012 to reach 88.8 per cent in 2013, whilst the overall operating ratio increased from 79.7 per cent in 2012 to 80.0 per cent in 2013.
Total assets of the general insurance industry for the first half of 2013 stood at RM26.83 billion compared to RM23.45 billion over the same period in 2012.
The Chairman of the General Insurance Association of Malaysia (PIAM), Mr. Chua Seck Guan said “The general insurance industry continued to remain resilient in the first half of 2013. We expect the industry to continue growing steadily based on increasing affluence among middle-income earners, fairly strong domestic consumption, innovative products and services introduced by insurers and new methods of engaging with consumers by leveraging on the technological advancements.”
He urged industry players to continue their efforts in modelling risks for growing economies, diversifying itsdistribution channels and developing new products to further penetrate the growing consumer market.
He added, “The insurance industry plays a robust role in Malaysia’s financial system, offering a wide spectrum of general and life insurance products, and PIAM remains committed to helping the nation protect itself from the financial impact of natural disasters and man-made risk through its members. Consumers are becoming more aware of the advantages of insurance, especially when it provides coverage or protection for loss or damage to their properties. They are also becoming more discerning on what suits them best and it is the prerogative of the insurance companies to deliver what their customer wants.”
Total General Insurance Market Share By Class:
|Marine, Aviation and Transit
|Medical and Health Insurance
Source: Insurance Services Malaysia Berhad (ISM)
About General Insurance Association of Malaysia (PIAM)
PIAM is the national trade association of all licensed direct and reinsurance companies for general insurance in Malaysia. Currently, PIAM has 29 member companies. More information on PIAM can be obtained from its website: www.piam.org.my.