Malaysian Insurance Highlights 2020

In 2020, Malaysia’s general insurance market outperformed the country’s overall economy. 

While the Malaysia’s GDP is forecasted to have dropped by 4.5 per cent in 2020, general insurance premiums remained almost stable.

This is one of the key findings of the Malaysian Insurance Highlights, a market survey launched today by Malaysian Re.

MOVEMENT CONTROL ORDERS

While the industry had to digest the impact of recurrent Movement Control Orders (MCO) that the national government installed to contain the spread of the coronavirus, Malaysia’s general insurers maintained a solid capitalisation.

The country’s insurers also cushioned the effects of the crisis on policyholders’ strained budgets by deferring premium payments or allowing for additional instalments.

Finally, Malaysia’s life and general insurers as well as the Takaful companies contributed to enhance the COVID-19 test capacity by setting up a fund that reimbursed policyholders if they had to take a test.

STRESS TESTING MODELS

‘During the pandemic Malaysia’s general insurers strengthened their risks management, stress-tested their capital models and their business continuity planning,’ says Zainudin Ishak, President and Chief Executive Officer of Malaysian Re.

‘In response to the MCO large parts of our workforce had to start working from home virtually overnight maintaining seamless operations and service with agents and customers.

‘As a result, many insurers substantially accelerated their investments in technology and digitalisation.

‘While the pandemic has been a tremendous strain on our industry too, we based our processes and capabilities on a stronger footing which will benefit us going forward.’

The Malaysian Insurance Highlights — an annual research publication issued by Malaysian Re and produced by Switzerland-based Faber Consulting—aims to identify and analyse the key trends that coin Malaysia’s insurance industry and how these might pan out in the near to mid-term.

FOCUS OF 2020 HIGHLIGHTS 

• the impact of COVID-19 on the insurance market premiums, claims and rates
• the insurance operators’ strategic responses and regulatory measures undertaken during the crisis
• the country’s healthcare preparedness in dealing with the COVID-19 pandemic.

SUMMARY OF KEY FINDINGS:

• In 2020 Malaysia’s general insurance market outperformed the country’s overall economy. While the Malaysia’s GDP is forecasted to have dropped by 4.5 per cent in 2020, general insurance premiums remained almost stable.
• While the industry had to digest the impact of recurrent Movement Control Orders (MCO) that the national government installed to contain the spread of the coronavirus, Malaysia’s general insurers maintained a solid capitalization.
• The country’s insurers also cushioned the effects of the crisis on policyholders’ strained budgets by deferring premium payments or allowing for additional instalments.
• Finally, Malaysia’s life and general insurers as well as the Takaful companies contributed to enhance the COVID-19 test capacity by setting up a fund that reimbursed policyholders if they had to take a test.

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