BEST'S MARKET SEGMENT REPORT: MALAYSIA NON-LIFE INSURERS MAINTAIN UNDERWRITING DISCIPLINE AMID MARKET CHALLENGES

SINGAPORE, March 30 (Bernama-BUSINESS WIRE) -- Although Malaysia’s non-life insurance industry is likely to have contracted in 2020 amid the COVID-19-fueled economic disruptions, the health and medical insurance segment is experiencing growth driven by greater demand, and overall, according to a new AM Best report, the Southeast Asia country’s non-life insurers have reported good overall profitability and have maintained solid solvency positions.

In its Best’s Market Segment Report, “Malaysia Non-Life Insurers Maintain Underwriting Discipline Amid Market Challenges,” AM Best states that industry’s gross premiums are expected to have fallen by more than 1% in 2020. In fact, during the first six months of 2020, premiums dropped by approximately 3.5% compared with the same prior-year period, with motor insurance having experienced the steepest fall, by more than 7%, due to stalled new vehicle production and a slowdown in automobile sales during the pandemic environment. Similar to trends observed in many other Southeast Asia markets, the pandemic has raised awareness for health and medical insurance; consequently, premiums grew by approximately 3% in first-half 2020, compared with the same period in the previous year.

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