The Life Insurance Association of Malaysia recorded an overall stronger performance with double-digit growth of 12.4% in its new business total premiums in 2021 as compared to 2020.
For the financial year ended December 2021, the industry recorded RM12.8 billion in new business total premiums from RM11.4 billion in 2020. The stronger performance of the life insurance industry reflects the increase in awareness among the consumers on the importance of life insurance protection amidst the COVID-19 pandemic.
According to LIAM President, Ms Loh Guat Lan, the industry recorded a healthier performance, driven by the strong rebound of investment-linked policies which rose 31.2% to reach RM6.6 billion in 2021, despite the challenging business environment due to the pandemic. Group policies recorded a moderate growth of 7.7% in new business total premiums to RM4.1 billion in 2021. However, traditional policies charted a decline of 17.3% during the year.
The encouraging take-up rate of the PTV programme by the BPR/BKM recipients bodes well with the industry’s financial inclusion agenda as the PTV programme is indeed the best opportunity for the BPR and BKM recipients to introduce financial planning in their families. The waiver of stamp duty for the purchase of Perlindungan Tenang products until the year 2025, in the long run, will encourage more recipients to continue with their protection plans to ensure that their families and loved ones are protected against key risks in life.
LIAM CEO, Mark O’Dell said the industry foresees the positive trends will continue in 2022, “The industry will continue to engage proactively with our key stakeholders and embark on our ongoing consumer education programmes to generate awareness on the importance of life insurance protection. We will continue to educate the consumers on medical and health insurance and how it can save their lives, factors that could lead to changes in premiums, how to maintain the sustainability of their medical policies and their role as responsible consumers.
Formed in 1974, the Life Insurance Association of Malaysia (LIAM) is a trade association registered under the Societies Act 1966. LIAM has a total of 16 members, of which 14 are life insurance companies and 2 life reinsurance companies