Life insurance - Malaysia

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

in-scope

• Death benefit insurance
• Endowment insurance
• Disability insurance
• Dowry insurance
• Birth insurance
• Term life insurance
• Whole life insurance
• Universal life insurance
• Burial insurance
• Other types of life insurance

out-of-scope

• Health Insurance
• All non-life insurance types
• Reinsurance

Insurances

• Life insurance
• Non-life insurances
  • Health insurance
  • Motor Vehicle Insurance
  • Property Insurance
  • General Liability Insurance
  • Legal Insurance
  Related markets: Please wait Methodology

  

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  Analyst Opinion

  Over the past decade, the Life insurance market in Malaysia has experienced steady growth and development.

  Customer preferences: Customers in Malaysia are increasingly seeking life insurance products that offer not only financial protection but also investment opportunities. This shift in preferences can be attributed to the growing awareness of the importance of financial planning and wealth accumulation among the population.

  Trends in the market: One notable trend in the Malaysian life insurance market is the rise of digital insurance platforms and InsurTech companies. These platforms offer convenience, transparency, and personalized services to customers, attracting a younger demographic who prefer digital solutions. Additionally, there is a growing demand for Shariah-compliant life insurance products in Malaysia, reflecting the country's predominantly Muslim population.

  Local special circumstances: The regulatory environment in Malaysia plays a significant role in shaping the life insurance market. The introduction of regulatory frameworks such as the Financial Services Act and the Islamic Financial Services Act has helped enhance consumer protection and promote market stability. Moreover, the presence of both domestic and international insurance companies in the market fosters competition and innovation.

  Underlying macroeconomic factors: The economic stability and steady GDP growth in Malaysia have contributed to the increasing demand for life insurance products. As the country continues to develop and urbanize, there is a greater need for long-term financial planning and protection against unforeseen circumstances. Additionally, the rising middle-class population and disposable incomes have fueled the growth of the life insurance market as more individuals seek to secure their financial future.

  Methodology

  Data coverage:

  Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

  Modeling approach / Market size:

  Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

  Forecasts:

  In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

  Additional Notes:

  The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

  Overview

  • Gross Written Premium
  • Gross Claim Payments
  • Loss Ratio
  • Analyst Opinion
  • Users
  • Methodology
  • Key Market Indicators