General insurance sector seen growing 5.5%-6% in 2015 -association

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KUALA LUMPUR (Feb 9): The Malaysian general insurance industry is forecasted to grow 5.5% to 6 % in 2015, despite the impending goods and services tax (GST), according to the General Insurance Association of Malaysia [Persatuan Insurans Am Malaysia (PIAM)].

PIAM chairman Chua Seck Guan said impact of the GST on general insurance sales would be short-lived. The GST will be implemented, starting April 1 this year.

"We anticipate GST may dampen the sales for a short term only; and as for corporate customers, they have already been paying service taxes, so the impact would be more relevant to individual policy holders.

"Growth of the industry is pegged to the country's gross domestic product growth forecast for 2015 at 4.5% to 5.5%," Chua said at a press conference today, after launching PIAM's new logo.

In 2014, the general insurance industry grew 5.9% to RM17.09 billion, from RM16.15 billion in 2013.

During 2014, PIAM indicated the motor insurance segment continued to see higher claims.

"During 2014, the industry paid out RM5.04 billion in motor insurance claims. This represented a staggering RM13.8 million paid out daily as compensation for bodily injuries and property damages caused by road accidents, as well as vehicle theft," he said.