Malaysian Non-life insurance growth rate halved in 2016

Malaysian general insurance industry growth was reduced to 1.1% in 2016, with gross written premium income hitting MYR17.67 billion (US$3.97 billion). This was half the 2.2% growth rate achieved in the prior year period. Motor insurance was 0.8% up, maintaining its dominant share of the overall market at 46.2%. Fire insurance remains the second biggest class with a market share of 18.5% achieving a growth rate of 5.0% at MYR3.27 billion for the year. Medical and Health Insurance jumped 6.6% with gross written premiums reaching MYR1.03 billion. This is a change in fortunes from the 4.0% decline in 2015. The Miscellaneous Class comprising Bonds, Liabilities, Engineering and Workmen’s Compensation registered a 1.7% growth with gross written premiums reaching MYR2.35 billion. Marine Aviation and Transit insurance contracted by 7.8% with gross written premiums of MYR1.56 billion due in part to a reduction in demand for marine cargo and hull cover from the oil and gas sector. The Personal Accident class ended with a 0.2% reduction with gross written premiums of MYR1.30 billion. Overall the market was affected by weak consumer sentiments and sluggish external trade amidst growing uncertainties in the global environment.