KUALA LUMPUR: Malaysia’s life insurance industry has recorded a 5.3 per cent rise in sum assured in force amounting to RM1.9 trillion in 2022 versus RM1.8 trillion in 2021, said Life Insurance Association of Malaysia (Liam).
In its annual report 2022, president Loh Guat Lan said the total in force premium grew by 3.5 per cent last year to RM44.1 billion from RM42.7 billion in 2021. Loh stepped down on March 29, 2023 after completing a three-year stint as president.
“Overall new business sum assured increased to RM497.7 billion in 2022, an increase of eight per cent from RM461.1 billion in 2021. However, the number of new policies issued fell slightly by 2.1 per cent to 1.8 million compared with 1.9 million in 2021,” she said.
New business total premium showed a drop of 6.4 per cent last year, which amounted to RM12 billion compared with RM12.8 billion in 2021, while the industry recorded a 12.7 per cent increase in claims pay-out amounting to RM13.4 billion versus RM11.9 billion in 2021, mainly due to higher claims in medical and disability that rose by 33.7 per cent and 20.6 per cent, respectively.
Loh said Malaysia’s insurance industry remained resilient, adapting to new market conditions and continuing to meet the needs of customers despite the challenges brought on by the pandemic.
“The year 2022 has been a fulfilling one for LIAM as we continued to engage proactively with the regulator and our key stakeholders to address the challenges facing the industry,” she said.
Additionally, she said the insurance industry also saw the laying out of a five-year roadmap and strategic plan to achieve desired targets set under the Financial Sector Blueprint (FSBP) 2022-2026 launched by Bank Negara Malaysia (BNM) last year.
Hence, she said the association will be working closely with BNM, the industry’s key stakeholders, and its 16 member companies to seek further guidance and support to ensure smooth implementation of the respective initiatives to achieve the FSBP agenda.
“To support a vibrant digital financial services landscape, we will review the laws and regulations and proposed measures to enable end-to-end digitalisation of business processes such as the use of digital signature and digital nomination to provide a seamless policyholders’ experience,” she explained.
She said the association would be working with Financial Industry Collective Outreach to spread financial literacy in schools across Malaysia as well as with Credit Counselling and Debt Management Agency to embark on a financial education initiative targeted at tertiary students and working adults.
Moving forward, she pointed out that the industry needs to identify future-ready talent and develop diverse skillsets for multi-competencies to ensure that it could futureproof the workforce to remain competitive and relevant in a rapidly changing market.
“LIAM will collaborate with the Malaysian Insurance Institute (MII) on the development of all types of skills to support the digital workforce,” she added. – BERNAMA
