Total net policy benefit payouts may rise this year, but impact manageable, says Bank Negara

The insurance and takaful sector's total net policy benefit payouts could increase in 2021 due to additional costs associated with Covid-19-related procedures and treatments that are incidental to covered conditions, but the impact is expected to remain manageable, Bank Negara Malaysia (BNM) said.

“While death due to the pandemic is claimable under all life insurance policies and family takaful certificates, the low mortality rate observed among Covid-19 patients in Malaysia at 0.4 per cent against the global rate of 2.2 per cent would likely limit the impact from any additional death claims,” it said in the Financial Stability Review for Second Half 2020 report released today.

Read more here