Life insurance sector to see 10% premium growth

KUALA LUMPUR: The life insurance industry in Malaysia is expected to
see a 10% growth in premiums this year, based on the regional economic
growth, said Bank Negara Malaysia assistant governor Donald Joshua Jaganathan.

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Governor Bank Negara Malaysia Donald Joshua Jaganathan speaking at the
launch of the International Claims Convention 2012 "Insurance
Challenges" at Istana Hotel in Kuala Lumpur on May 28, 2012. - THE
STAR/Rohaizat Bin Md Darus He said on Monday that Asia
was at the forefront of global economic growth, with projected GDP
growth of between 7.3% and 7.9% in the next two years and this would
bode well for the regional insurance market.
"The Life Insurance
Association of Malaysia has projected that the local life insurance
industry could grow up to 10% this year. The general insurance sector
too, which is closely linked to the economy, is also expected to
demonstrate strong growth," he said at the opening of the two-day
International Claims Convention 2012.
"It has been forecast that
premiums in emerging Asia could potentially grow 9.5% and 11.5% for the
life and non-life market respectively," he said.
Jaganathan said
a key driving factor of these trends was the large and growing
middle-income population in the region with higher levels of disposable
income and who are also financially literate.
Another important
factor that would contribute to the growth of the insurance sector was
demography, where some parts of the region would face an ageing
population in years ahead, he said.