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RAM Ratings: Stable outlook from insurance and takaful sector
11 May 2022 | Wednesday Source: The Malaysian Reserve
RAM Ratings has maintained a stable outlook on Malaysia’s insurance and takaful sector despite volatile investments and claims normalisation leading to the endemic.
In its latest “Insurance and Takaful Insight: Raising the Game” report, the life and family takaful sector’s new business (NB) has increased by 10% and 20%, respectively this year compared to 12% and 29% in the previous year where it has rebounded strongly after being subdued to the Covid-19 pandemic.
Even with the increase of new ordinary life/family policies due to the Perlindungan Tenang policies taken up by the bottom 40% income group communities, the segment is mainly driven by investment-linked plans in terms of new business premiums and contributions.
These policies only contributed 0.4% to aggregate NB premiums and contributions in 2021.
