Malaysia’s insurance industry is set for a another fruitful year as the Life Insurance Association of Malaysia (LIAM) has predicted that the country’s life insurance industry will grow between 5% and 10% in insurance coverage this year from last year’s 6.9% increase.
LIAM President Vincent Kwo said last year’s insurance coverage amounted to MYR1.17tr (USD321bn) from 2013’s MYR1.09tr (USD299bn).
Kwo added that last year’s 9.3% growth in total premiums is expected to be repeated this year.
The report, however, does not mention how much Malaysia’s life insurance industry paid back to the consumers but Kwo said medical claims and bonuses paid to customers amounted to MYR8.42bn (USD2.34bn) in 2014 from MYR6.94bn (USD1.9bn) in the previous year.
“The industry does pay out a significant amount, in terms of medical claims and bonuses to customers, which amounted to RM8.42bil last year compared with RM6.94bil in 2013,” he told Bernama.
The Malaysian government has set a target of at least 75% of insurance coverage for Malaysians by 2020 and Kwo said the life insurance and family takaful now provide insurance protection for 55.5% of the country’s population.
LIAM has 14 life insurance and two life reinsurance firms as members.
Meanwhile, Korean Re announced in a statement that it has officially entered the Lloyd’s market with the establishment of Korea Re Underwriting Ltd in London on 1 April.
The world’s ninth largest reinsurance firm has established Korean Re Underwriting Ltd through a strategic partnership with Beazley, the parent company of specialist insurance businesses that operates around the world.
Korean Re Underwriting Ltd is a special-purpose syndicate (SPS) with a capacity of GBP10m (USD14.9m), the company said.
It added that the entry into the Lloyd’s market will give Korean Re the chance to experience advanced reinsurance practices and techniques, which it hopes will help boost the growth of its business in Europe.
Both Korean Re and Beazley agreed to share their underwriting experiences in the markets that they have traditionally been serving. Korean Re was established in 1963 by the Korean government.