Best Insurance Plans in Malaysia

Insurance has become an inevitable part of the lives of people. With the mandatory norms on having a motor insurance before taking your vehicle on the road, it has become an imperative to know how a motor insurance works . Similarly, you must be aware of the various insurance policies available to keep your daily routine going smooth; irrespective of any unfortunate events that may occur.

Here is a brief overview of the meaning of insurance, takaful, their types, and different insurance providers under each category.

What kind of insurance would you prefer to explore?

Types of Insurance Policies in Malaysia

  • Life Insurance: It embraces and protects many aspects of your life, such as for retirement. Some of the plans associated with life insurance are:
    • Endowment Plan: You get both protection and savings with this plan.
    • Investment-linked Plan: The policy combines protection and investment under one plan. You will receive the balance in your investment account once the policy matures.
    • Annuity: The policy provides you a monthly pay-out until the policy is active. This is useful to spend your retirement life conveniently.
    • Whole Life Insurance: The insurance remains active and protects you until you reach an age of 100 years. Therefore, the premium you must pay may be high.
    • Term Life Insurance: The plan offers protection for a short period of time. Some policies may be required to renew every year.
  • Health Insurance: With a health insurance policy, you can get a cover on the medical treatment expenses. It also covers surgical expenses and hospital stay costs. Some policies cover the treatment cost of a number of pre-specified critical illnesses. The premium varies based on the number of people covered by the policy.
  • Personal Accident Insurance: A personal accident insurance is an annual cover that provides you with the policy benefits when you meet with an accident resulting in injuries, disability, or death. Such a policy may provide funeral expenses, repatriation benefits, and weekly indemnity.
  • Motor Insurance: Such insurance plans protect your vehicle against theft, damage, and other unforeseen events. You must have a motor insurance if you have to take your vehicle on the roads of Malaysia.
  • Home Insurance: Home insurance comes in two forms:
    • House Owner’s Insurance: This policy covers your house and its permanent fixtures against any damage caused due to natural disasters.
    • House Content Insurance: The house content insurance provides coverage in favour of the current householder. The contents of the house is covered and provides you benefits when there is loss/damage to the content of your house due to events such as robbery.
  • Travel Insurance: A travel insurance provides coverage against any unfortunate events that may occur when you are travelling, such as loss of baggage, flight delay/cancellation, and personal accident while travelling or during your stay abroad. Some policies provide coverage you only when you travel abroad, while the others provide cover even when you are travelling in Malaysia.

Top Life Insurance Companies in Malaysia

Company Name No Lapse Guarantee Basic Sum Assured on Death/TPD Investment-Linked Insurance Premium Top-Up Facility Guaranteed Maturity Benefit
Allianz Malaysia Yes (6 years) Yes Yes Yes No
AXA Affin No Yes Yes Yes No
Hong Leong Assurance No Yes Yes Yes Yes
AmMetLife No Yes Yes Yes Yes
Gibraltar No Yes Yes - Yes
Great Eastern Life Yes Yes Yes Yes Yes
MCIS Insurance Yes (5 years) Yes Yes Yes Yes
Prudential Assurance Malaysia Yes Yes Yes - Yes
Sun Life Malaysia No Yes Yes Yes Yes
Tokio Marine Yes Yes Yes No Yes

Top Health Insurance Companies in Malaysia

Company Name Hospitalisation Expense Cover Surgical Expense Cover Critical Illness Cover Outpatient Treatment Cover Overseas Treatment Cover
Hong Leong Assurance Yes Yes Yes Yes Yes
AXA Affin Yes Yes Yes Yes Yes
AmMetLife Yes Yes Yes Yes No
Gibraltar Yes Yes Yes Yes No
Great Eastern Life Yes Yes Yes Yes Yes

Top Personal Accident Insurance Companies in Malaysia

Company Name Accidental Death Cover Accidental TPD Cover Third-Party Cover Renewal Bonus
Berjaya Sompo Insurance Yes Yes Yes Yes
Tokio Marine Yes Yes Yes Yes
Pacific & Orient Yes Yes Yes Yes

Top Motor Insurance Companies in Malaysia

Company Name Comprehensive Cover Third-Party Cover Passenger/Pillion Cover No Claim Discount
Tokio Marine Yes Yes Yes Yes
AXA Affin Yes Yes Yes Yes
Pacific & Orient Yes Yes Yes Yes
AIG Malaysia Yes Yes Yes -
Berjaya Sompo Yes Yes Yes Yes

Top Home Insurance Companies in Malaysia

Company Name House Building Cover House Content Cover
Great Eastern Life Yes Yes
Etiqa Yes Yes
Tokio Marine Yes Yes
Pacific & Orient Yes Yes

Top Travel Insurance Companies in Malaysia

Company Name Family Cover Travel Inconvenience Cover Terrorism Cover Medical Cover
Etiqa Yes Yes Yes Yes
Tokio Marine Yes Yes Yes Yes
Great Eastern Life Yes Yes No Yes
Berjaya Sompo Yes Yes Yes Yes

What is an Insurance?

An insurance policy is a commitment made between you and an insurance provider. You agree to pay the premiums at a set interval—monthly, quarterly, half-yearly, or yearly. The insurance provider provides you with a lump sum when an unfortunate event occurs, such as death and permanent disability for life insurance; loss/damage to your car in case of motor insurance; and damage to your home or home content in case of home insurance.

What is a Takaful Coverage?

Takaful is the Islamic version of an insurance that works based on the Shariah principles. The main concept of takaful is harmony and shared responsibility among the customers. All the customers are required to take up responsibility in case one of them is suffering a loss as described in the policy document.

In short, all the customers must contribute to a common fund. In case a customer is suffering a loss as per the pre-agreed events, a share of the common fund will be provided to that customer as a compensation.

Difference between Conventional Insurance and Takaful Coverage

Factor Conventional Insurance Plans Takaful Plans
Influencing Laws Government laws. Shariah and government laws.
Basic Principle Commercial factors. Mutual cooperation.
Profit and Risk Sharing Profits and risks are completely handled by the insurance provider and the shareholders. They are not shared with the customers. Profits and risks are equally shared by the customers and the takaful providers.
Investment of Funds The funds collected from the customers can be invested in any investment channels. The funds collected from the customers can be invested only in Shariah-compliant investment channels.

Basic Principle of Takaful Cover

  • The takaful coverage works on the basic principle of trust because you are required to reveal all the information asked for.
  • The takaful products do not provide you with any profit. However, they help you recover from the financial loss you have been through.
  • The takaful provider reserves the right to recover a compensation from the third-party responsible for your financial loss.
  • If you have subscribed for protection with multiple takaful/insurance providers, then the

Types of Takaful Coverage

  • General Takaful:
    • Home Takaful: Home takaful comes in two variants—house owner and the occupant’s’ takaful. The former offers protection to the house and other related permanent fixtures against damage from natural disasters. In another case, the latter covers the loss/damage to the contents of the house.
    • Motor Takaful: A comprehensive motor takaful plan provides coverage against loss/ damage to your vehicle due to theft, accident, or fire. Some takaful policies cover the damage caused to third-party vehicles and bodily injury caused due to an accident and they are called a third-party cover.
    • Personal Accident Takaful: A personal accident takaful plan provides benefits to your family in the case of injuries, death, or disablement caused due to an accident. The policy can be taken for you; you can also include your family under protection.
  • Family Takaful:
    • Retirement Annuity: The takaful plan provides you with regular monthly income when you retire from your duties.
    • Investment-linked Takaful: The plan offers protection and investment benefits based on the premium you pay. You can choose the coverage and the investment amount. You can also vary the amount you pay for the two components based on your affordability. The policy allows you to claim the investment-related benefits at any time.
    • Child Education Takaful: The policy is meant to make long-term savings so you can afford to finance the higher education expenses of your child. The plans are designed to take care of your child’s education.
    • Health Takaful: When you think the medical treatments are expensive, the policy comes to your rescue. A health takaful plan takes care of your medical treatment, hospitalisation, surgery and other expenses. You may also get coverage for certain critical illnesses with the policy.

Top Life Takaful Providers in Malaysia

Company Name No Lapse Guarantee Basic Sum Assured on Death/TPD Investment-Linked Insurance Premium Top-Up Facility Guaranteed Maturity Benefit
AmMetLife No Yes Yes Yes Yes (Investment account balance only)
Sun Life Malaysia No Yes Yes Yes Yes
Zurich Malaysia No Yes Yes No Yes

Top Health Takaful Providers in Malaysia

Company Name Hospitalisation Expense Cover Surgical Expense Cover Critical Illness Cover Post-Hospitalisation Cover Outpatient Treatment Cover Overseas Treatment Cover
Great Eastern Takaful Yes Yes Yes Yes No Yes
Sun Life Malaysia Yes Yes Yes Yes Yes No
Zurich Malaysia Yes No Yes No No Yes
Syarikat Takaful Yes Yes No Yes Yes Yes

Top Personal Accident Takaful Providers in Malaysia

Company Name Accidental Death Cover Accidental TPD Cover Third-Party Cover Renewal Bonus
Syarikat Takaful Yes Yes No No

Top Motor Takaful Providers in Malaysia

Company Name Comprehensive Cover Third-Party Cover Fire and Theft Cover Passenger/Pillion Cover No Claims Benefit
Etiqa Yes Yes Yes Yes Yes
Zurich Malaysia Yes Yes No Yes Yes
Syarikat Takaful Malaysia Yes Yes Yes Yes Yes

Top Home Takaful Providers in Malaysia

Company Name House Owner’s Insurance Householder’s Insurance Fire Cover
Zurich Malaysia Yes Yes Yes
Syarikat Takaful Yes Yes Yes

Top Travel Takaful Providers in Malaysia

Company Name Family Cover Travel Inconvenience Cover Terrorism Cover Medical Cover
Etiqa Yes Yes Yes Yes
Syarikat Takaful No Yes No Yes

Why You Should Buy Insurance Online?

  • You don’t have to visit the branch and wait in a queue for your turn if you buy the policy online.
  • You can check all the available options and compare their pros and cons before you settle down with which policy you want to purchase.
  • The premiums you pay turn out to be cheaper online than the premium you have to pay for the same policy offline. Online application cuts down on several other expenses to the insurer, such as the commission payable to an agent and the distribution channel expenses.
  • The online application form and the electronic version of the supporting documents makes the online application process hassle-free. You do not have to submit any papers.

How to Apply for General Insurance

Insurance Agent
  • Get in touch with an insurance agent working for the insurance company of your choice.
  • Find out the details about the right insurance policy for you.
  • Fill up the application form.
  • Submit all the required documents to the insurance agent.
  • Your application will be processed and you will be notified of the insurer’s decision.
Customer Service
  • Choose an insurance company to buy the insurance policy.
  • Call up the customer service number.
  • Enquire about the application procedure to buy the policy of your choice.
  • Follow the instructions and apply for the policy.
Branch Office
  • Visit the nearest branch office.
  • Discuss with the staff on the insurance policy you wish to buy.
  • Fill up the application form and attach the required documents.
  • Submit the application to the branch.

How to Apply for Takaful Cover

Branch Office
  • Visit the nearest branch office of the takaful provider.
  • Enquire about the takaful cover you wish to buy.
  • Fill up the application form and attach the required documents.
  • Submit the application to the branch.
Customer Service
  • Check if your takaful provider considers application through customer service channel.
  • If yes, then call the customer service and express your interest to buy the takaful cover.
  • Follow the procedure advised by the customer service personnel.
Takaful Agent
  • Figure out the contact details of a valid takaful agent working for the takaful provider of your choice.
  • Contact the agent and get to know more about the product and the application process.
  • Fill up the application form and attach the required documents.
  • Submit the application to the agent.
  • The agent will pass-on your application to the takaful provider.

How to Apply for Insurance Online

  • Decide on the policy you want to purchase.
  • Visit the insurance provider’s website.
  • Open the policy page that you want to purchase.
  • Fill up the online enquiry form and submit.
  • A representative from the insurance company will give you a call to discuss the policy.

Conclusion

Since there are multiple options available in each insurance category, you have to do a detailed research before settling down with the right insurance policy for you. Try to go with the paperless mode of application to have a hassle-free experience. It is recommended that you have to read the policy document thoroughly before you sign on the document. If you have any query regarding the policy, you can contact the insurance agent or visit the branch office and get your queries clarified.

As the insurance is usually a long-term commitment, you have to be sure that you can afford paying the premium throughout the premium payment tenure. If you don’t pay the premium within the grace period, the policy may lapse.

FAQs

Q. Which insurance provides repatriation expense cover?

A. You can get a repatriation expense cover when you buy a travel insurance policy.

Q. Can I purchase multiple health insurance policies from different insurers?

A. Yes. You can buy multiple health insurance policies from different providers. When you make a claim, the insurers may communicate and disburse the claims in proportion.

Q. What should I do if my comprehensive insurance policy does not cover critical illnesses?

A. If your comprehensive insurance policy does not cover critical illnesses, then you can buy a critical illness rider to complement your current policy.

Q. Are there dedicated insurance policies for cancer?

A. Yes. A few insurance providers offer policies dedicated to cancer treatment.

Q. Can I make a claim to get the expenses of repairing a broken window glass?

A. Yes. Some insurance companies accept claims to repair a worn-out window glass.

Latest News About Insurance

  • Parti Socialis Malaysia Urges Government To Be Transparent About New Healthcare Schemes

    Parti Socialis Malaysia has urged the government to clarify their queries about the impending health insurance scheme. This way, the news wouldn’t come as a surprise during the 2019 Budget, and the masses too will get a chance to discuss about the plans in detail. The spokesperson of the party, Dr. Jeyakumar Devaraj, ex-MP for Sungai Siput, apprehends that this new scheme will worsen the existing problems of the current healthcare system.

    Asking the Malaysian health ministry to be upfront about the scheme, Dr. Devaraj also advised them to increase the health budget by 15% per year till it finally crosses 4% of the GDP (Gross domestic product).

    He had also made a couple of other suggestions regarding the existing healthcare system. First, he wants the government to reject approvals for new private hospitals, since it’ll compel specialists to work at government hospitals. Second, he recommends using an alternative Service Commission for the Government healthcare staffs with higher pay scale, in a bid to attract more health personnel to government hospitals. Finally, he wants the government to conduct forensic audit detailing how medicines are being purchased via third-parties.

    BBazaar Malaysia

    10 December 2018

  • AMMB to Gain Profits of 644.6 million Post AmGeneral Insurance Sales

    CIMB Equities Research has reported that AMMB Bhd will witness a divestment profit of RM644.6 million after selling off the AmGeneral Insurance (AI) division.

    The research house announced that the approximate selling price of the insurance division would be around RM3.3 billion by the end of September 2018. They are also assuming that the current value of AmGeneral’s Insurance for AMMB will be equal to 51% of the shares of the insurance company’s funds.

    Till date, AI was one of the key earning contributors of AMMB. According to CIMB’s estimates, 9.2% of AMMB’s net profit was contributed by AmGeneral Insurance in the current financial year. In this case, the sale of their stake could cut down on AMMB’s FY20-21F profits by <9-10%.

    AmGeneral Insurance’s shareholders’ funds was somewhere around 1.6 billion by the end of September 2018. So the suggested selling price of RM3.3 billion qualifies it to a price-to-book-value, twice its original amount. The price is still reasonable since it is 2.3 times lower than the average price-to-book value for the previous insurance deals in Malaysia.

    BBazaar Malaysia

    4th December 2018

  • Allianz, MSI Make It To The Second Round Of AmGeneral’s Auto-Insurance Bid

    Allianz Malaysia Bhd and Mitsui Sumitomo Insurance Co. have made it to the second round of AmGeneral Bhd’s auto-insurance bid. Industry insiders said that this deal is valued at $800 million. Currently, both the parties are slated for a formal discussion with the Malaysian Central Bank.

    AMMB Bhd holds 51% of AmGeneral’s shares, while Insurance Australia Group Ltd owns the remaining. So this deal might result in a bancassurance agreement which will allow people to dispense insurance products via the branch networks of AMBB.

    This transaction can also be fruitful for Prudential Plc and Tokio Marine Holdings Inc., as both of them are planning to cut their stakes from the Malaysia based insurance units.

    Lately, the Malaysian Government have been seeking stronger local investments in the auto-insurance sector. But according to the Central Bank Governor, Nor Shamsiah Mohd Yunus, they are also open to foreign investments.

    Upon trying to reach out, the representatives of Allianz Malaysia, AMMB, and Mitsui Sumitomo Insurance have declined to comment. According to them, their companies have nothing relevant to disclose at the moment.

    BBazaar Malaysia

    4th December 2018

  • Erstwhile BNM Executive to Join Genting Malaysia As Director

    CIMB Equities Research has reported that AMMB Bhd will witness a divestment profit of RM644.6 million after selling off the AmGeneral Insurance (AI) division.

    The research house announced that the approximate selling price of the insurance division would be around RM3.3 billion by the end of September 2018. They are also assuming that the current value of AmGeneral’s Insurance for AMMB will be equal to 51% of the shares of the insurance company’s funds.

    Till date, AI was one of the key earning contributors of AMMB. According to CIMB’s estimates, 9.2% of AMMB’s net profit was contributed by AmGeneral Insurance in the current financial year. In this case, the sale of their stake could cut down on AMMB’s FY20-21F profits by 9-10%.

    AmGeneral Insurance’s shareholders’ funds was somewhere around 1.6 billion by the end of September 2018. So the suggested selling price of RM3.3 billion qualifies it to a price-to-book-value, twice its original amount. The price is still reasonable since it is 2.3 times lower than the average price-to-book value for the previous insurance deals in Malaysia.

    BBazaar Malaysia

    4th December 2018

  • Geopolitical Tensions and Increased Insurance Claims Impacting Maybank’s Profit

    Malayan Banking Bhd (Maybank) reported a lower profit in the third quarter on lower fee-based income. Maybank’s CEO signalled that the geopolitical situation was a key factor for this drop. CIMB Group Holdings Bhd, a smaller competitor, also raised alarm on the weakening regional economics and the U.S.-China trade war.

    At the end of the quarter in September, Maybank’s net profit dropped 3.4 percent. The bank ascribed the fall to foreign exchange fluctuations and the reduction in investment and trading proceeds. According to its statement, allowances for impairment and insurance claims also increased, contributing to lower profits.

    Zafrul Aziz, the CIMB group’s CEO, said that CIMB is going to “continue to control asset quality and cost across its businesses” in the presence of global trade tensions.

    The second largest lender by assets in the country reported a RM1.18 billion profit during the third quarter. However, its revenue dropped by 6.3 percent.

    Maybank and CIMB’s net interest income, an important measure of banks’ performance, is reported to have dropped to 2.3 percent and 7.3 percent respectively during the third quarter.

    The mixed results have appeared in the weakening environment of the Malaysian economy. Analysts have raised the warning that the banking sector will take a hit due to these circumstances. According to reports, the economic growth is expected to fall to 4.8 percent in 2018, compared to 5.9 percent in the previous year.

    BBazaar Malaysia

    29 November 2018

  • Domestic Insurers Need to Gear Up For Competition: BNM

    BNM assistant governor Adnan Zaylani recently said that the domestic insurers need to gear up and develop their own game against the foreign counterparts. Zaylani was talking at the third instalment of the Asean Insurance Summit in Kuala Lumpur.

    The Bank Negara Malaysia governor also said that many domestic insurers have not yet developed their own competitive advantage. They are benefitted from the partnership with their foreign colleagues but they need to serve the public more on the financial and protection requirements. He also emphasised the fact that the domestic insurers need to reach a substantial scale of operations if they want to compete with the foreign insurers effectively.

    Talking about how insurance schemes should explore less penetrated markets, he stated that Malaysia is on the verge of introducing an insurance scheme for the ‘underserved bottom 40%’ (B40) households. This scheme is expected to be operation by early 2019.

    BBazaar Malaysia

    29 November 2018

  • “Run For Insurance 2018” held in Sibu to promote Insurance

    The National Association of Malaysian Life Insurance and Family Takaful Advisors (Namlifa), Sibu Branch, recently organised the ‘Insurance Awareness Torch Run – Run For Insurance 2018’. Around 1,300 participants were a part of the run that was flagged off by the Sibu Municipal Council (SMC) chairman Datuk Tiong Thai King. Participants for the run held at Sibu mostly had people from other areas of Malaysia, namely, Sarikei, Kuching, Mukah, Betong, Kapit, Sri Aman, Miri, Bintulu, and Peninsular Malaysia.

    The run was held to promote “World Insurance Awareness Day”. Namlifa president KP Lim also joined the run along with representatives from government department and sponsors. Finishers’ medals were also awarded to runners who completed 3 km and 6 km runs. Gift certificates worth RM2,200 were awarded to the top 20 finishers of the 6 km run in both men’s and women’s categories.

    The run had also planned a lucky draw, which had 50 prizes to be won by participants. Sponsors for the prizes includes Doremon Supermarket Sibu Jaya, AmMetLife Insurance Bhd, Rejang Medical Centre, Tanahmas Hotel, Premier Hotel, Pokka, and Hua Bin Trading. The grand prize was Gree 1-horsepower air-conditioning unit.

    BBazaar Malaysia

    26 November 2018

  • Net Profit Rises 5% for AmBank Group, Insurance Performs Well

    At the end of the second quarter, AmBank Group presented stronger financial results that point to improving operating leverage, income momentum, and profitability.

    The net profit in the first half scaled faster (5.5%) than the last parallel period. It went from RM659.74 million to RM695.74 million this time. The revenue also rose to RM4.48 billion, showing an increase of 6.6%.

    Datuk Sulaiman Mohd Tahir, the CEO of AmBank Group, said that the group is continuing to build on the great progress made by the company last year. For the last three consecutive quarters, AmBank Group has earned more than RM1bil.

    The group’s lower financial markets and investment banking revenue turnover was fuelled by the improved performance of its wealth management, corporate, and business banking fee. Lower claims and actuarial revaluation gains led to improvement in the performance of the general insurance business.

    BBazaar Malaysia

    22 November 2018

  • Third ASEAN Insurance Summit to focus on innovations in the industry

    The third ASEAN Insurance Summit, to be held on 28 November 2018, shall have the theme of “The Fourth Industrial Revolution (4IR) and its Impact on the ASEAN Insurance Industry”. It will explore how insurance practices can be carried forward in the future through innovations in approach and technologies.

    The event is organised by the ASEAN Insurance Council (AIC), and is backed by Life Insurance Association of Malaysia (LIAM) and the General Insurance Association of Malaysia (PIAM). The summit is set to impact ASEAN insurance authorities, insurers, regulators, practitioners, and other parties. The summit hopes to achieve key exchange of experience and ideas, including that of innovation, technologies, new developments among the different stakeholders.

    The event hopes to bring forward over 250 participants from all over Malaysia, including regulators, industry leaders, industry players, and other stakeholders. The focus of the event will be on the future trends and innovations, along with the impact on the insurance and reinsurance sectors.

    BBazaar Malaysia

    31 October 2018

  • BNM Governor Asks Foreign Insurers to Divest Their Funds or Contribute to the B40 Fund

    Bank Negara Malaysia (BNM) Governor Datuk Nor Shamsiah Mohd Yunus has recently made an important announcement for foreign insurers in the country. The foreign insurers will have options of divesting their stakes or to contribute the B40 National Health Protection Fund.

    This statement was made for the foreign insurers to comply with the BNM’s ruling to sell a minimum of 30% their stakes to the local entities.

    The governor further said that the objective of the divestment remains the same, which is to promote long-term benefits for the country and providing broader insurance cover to the bottom 40% household group (B40).

    Talking in a media briefing, she further said that the foreign insurers are given with the options and they need to revert with their choice. Under the financial liberalisation policy, the foreign ownership limit for Malaysian insurers was set at 70% in 2009. However, higher foreign shareholding was permitted on a case-by-case basis.

    The B40 National Health Protection Fund will be announced early next year. The scheme is expected to bring in many benefits related to various insurance covers for the B40 group.

    BBazaar Malaysia

    19 November 2018

  • Malaysia’s Insurance Industry's Consolidation Looks Tough

    The consolidation of Malaysia's insurance sector is unlikely to take place soon due to problems within the industry. In September, the central bank requested insurance companies to consolidate in order to improve performance and to enter new markets.

    As per Bank Negara's data, currently, there are 47 companies in Malaysia that are into insurance. These include 13 life insurers, 21 general insurers, 12 takaful operators, and 1 company that provides both general and life insurance. Foreign insurance companies have around 76% stake of the insurance market.

    All these insurance companies are catering to 32 million Malaysians. Moreover, insurance contributes a meagre 1.7% of the country's GDP. Currently, the national insurance penetration rate is at 56%. The central bank's objective is to increase this rate to 75% within 2 years.

    Comparing all insurance sectors, there is a noticeable increase in the medical and health insurance market. The rate is currently at 15.4% and will increase further in the near future. According to an analyst, consolidation of the industry is the best way to resolve problems with the low insurance penetration rate.

    Apart from low penetration rate, problems with valuations and issues with stakeholders are other reasons that delay the insurance industry’s consolidation.

    BBazaar Malaysia

    15 October 2018

  • Partnerships in the insurance sector key for improving Malaysia’s economy, says BNM

    Bank Negara Malaysia (BNM) stated that insurance industry players should collaborate and help improve the performance of the insurers in a bid to develop the nation’s economy. The BNM governor Datuk Nor Shamsiah Mohd Yunus, in her keynote address at the Malaysian Insurance Summit 2018, noted that insurance and takaful companies help keep the market stable.

    She opined that insurance companies should form partnerships to improve their performance and enter new markets. Insurance currently contributes to 1.7% of the country’s GDP and 5.8% of financial assets. Domestic insurance has not been able to penetrate well into the country’s economy, and total premiums to GDP contributes to only 4.8% in the last few years. The Malaysian health and medical insurance market had the highest average medical gross inflation at 15.4% in 2018.

    Nor Shamsiah also suggested that there is a need to build a more customer-friendly experience and simplify their products. Direct distribution channels, such as online and mobile platforms, will also lead to an increase in the use of the number of insurance products.

    BBazaar Malaysia

    01 October 2018

  • Insurance and Takaful Sector Sees Strong Gains in the First Half of 2018

    According to Bank Negara Malaysia’s (BNM) mid-year performance report, the insurance and takaful sector grew by +630 base points and the post-stress Capital Adequacy Ratio (CAR) stood above the 130% mark. Riding high on a strong capital position and sound profitability, the industry continued its exponential growth in the first half of 2018.

    The growth in the industry has been driven by a rise in credit-related takaful and insurance products and new protection policies being distributed through direct channels. Gross direct premium of the medical and health segment also increased by +9% year-on-year. This rapid growth is due to the high inflation rate being witnessed by Malaysia’s medical and healthcare sector. On the other hand, insurance and takaful within oil-related businesses contributed just 5% of the total gross direct premiums. But experts believe that there is scope for growth as global oil prices continue to recover.

    The report also highlighted the increase in Islamic financial products and the untapped potential of non-Muslim market as the reasons for projected growth in the second half of the year. Experts have picked Syarikat Takaful Malaysia Keluarga Bhd as the most promising takaful provider to watch out for.

    BBazaar Malaysia

    27 September 2018

  • BNM releases statement on financial stability review

    Bank Negara Malaysia reported that financial stability in Malaysia has been unchanged in the first half of 2018. Positive liquidity and funding conditions, supported by the growth of financial institutions have led to more financial intermediation activities.

    The excess liquidity in the banking sector of the country is at RM156.2 billion. Efforts to include stable medium-term debt instruments has led to diversification of the funding base for banks. Around 75% of new housing loans have been approved for applicants with debt service ratios of less than 60%. The ratio of household debt-to-GDP is currently at 83.8% in Q2 of 2018. Malaysian non-financial corporations (NFCs) have also remained steady in the first half of the year. Even with the aggregate leverage of NFCs increasing in this period, the positive debt servicing capacity of firms have helped it maintain balance.

    Insurance and takaful sector have recorded a positive growth of 2.2% in this period. New insurers and family takaful operators have recorded 7.7% growth in the period, mainly due to an increase in credit-related insurance and takaful products along with housing loans. Even under severe domestic and global instabilities, BNM is expected to retain a positive growth in the future.

    BBazaar Malaysia

    26 September 2018

  • Relief for foreign insurers in divestment options in Malaysia

    Bank Negara Malaysia (BNM) has announced that the foreign insurers shall be allowed flexible divestment options. Foreign parties will now be allowed to reduce their stakes to 70% from earlier 100%. The deadline for reducing the stakes are now to be mutually decided upon by BNM and the insurer, said the central bank’s Governor Datuk Nor Shamsiah Mohd Yunus. This would provide more options for the foreign insurers to reduce their stakes.

    The move aims to encourage long-term economic gains and also increase the rate of insurance usage in the country. The BNM is also hoping to provide faster and flexible solutions for insurers. This is important since the divestment options for some insurers are much more complex than the others.

    All foreign insurers have been covered under this plan. Currently, 11 insurance agencies are completely owned by foreign firms, including Great Eastern, AIA, and Tokio Marine. Additionally, five foreign insurers are reported to be in negotiations with domestic investors for covering 30% of their stakes.

    BBazaar Malaysia

    22 August 2018

  • CHI thinks that the proposed social health insurance scheme is rigid

    A think tank called the Citizen's Health Initiative (CHI), which propagates the involvement of citizens in healthcare policies, has brought a proposal to the Council of Eminent Persons (CEP) titled “The Way Forward for Healthcare in Malaysia”.

    According to the group's statement, the introduction of voluntary health insurance is regressive, as the country already has a tax-based financed public healthcare system in place. As per the current healthcare system, the tax-revenue financing comes from the revenue from the Treasury funds and that the government collects. Social health insurance includes compulsory contributions from salaried professionals, their employees, the self-employed, as well as government servants.

    Dr Lee Boon Chye, Deputy Health Minister, had said earlier that there is a need to introduce social health insurance in the near future to cover all Malaysians as far as healthcare is concerned. He said that it would not be more than 5% of the person's monthly salary, and much lower for lower income groups. Additionally, the government is looking to provide free insurance coverage for B40 which is expected to be rolled out by the budget for the upcoming financial year, just before introducing a social health insurance.

    BBazaar Malaysia

    16 August 2018

Top Insurance Companies
Car Insurance Malaysia
Travel Insurance Malaysia
Life Insurance Malaysia
Find Out More
reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.