Life insurance records healthy growth in Q3 2019

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KUALA LUMPUR (Dec 6): The life insurance industry registered a healthy growth in insurance coverage among Malaysians in the third quarter (Q3) of this year, recording a total of RM391.78 billion in new business sum assured, said the Life Insurance Association of Malaysia (LIAM).

Its president Loh Guat Lan said this achievement was a 9.4% increase, compared with RM358.05 billion registered in the same period last year.

She said the healthy performance of the life insurance industry reflected the continued increase in awareness among Malaysians on the importance of insurance protection.

"As a whole, the life insurance industry registered a total of 969,680 new policies in the third quarter of 2019, an increase of 7.6 per cent, while the group policies grew by 1.2 per cent.

"The new business total premium grew by 13.2 per cent this year, amounting to RM8.74 billion, compared with RM7.72 billion in 2018. The total claims paid out increased from RM7.85 billion last year to RM8.68 billion this year, recording an increase of 10.5 per cent,” she said in her speech during the media appreciation luncheon here today.

Loh added that the increase in claims payments was mainly due to higher medical claims, which rose to 22.6%.

Meanwhile, she said LIAM will be publishing an educational article to educate consumers on understanding the new investment-linked product sales illustration and disclosures after Jan 1 next year.

“In the first quarter of 2020, LIAM will also be embarking on a comprehensive consumer education campaign, leveraging on social media platform and key opinion leaders,” she said.

Targeting the younger generation, Loh said the campaign aimed to educate Malaysians on the needs for life insurance protection. — Bernama