According to Ken Research Financial crisis or financial instability affects the growth of global insurance premiums in the economy. Global insurance premium were growing at a higher rate in the pre-crisis period as compared to the period after the crisis.
It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries, according to Ken Research.
Challenges in front of insurers to capture major market share
- Insurers need to strengthen their relations with the consumers
- There is a need for huge investment in data analytics so that insurer can differentiate between a fraud and an actual claim, optimize claim outcomes and reduce risks
- Need to be active on social media to address mass consumers
- Growing number of insurers and hence threat from competitors
- Set the rate of premium very carefully otherwise insurer can lose all his market share
- Working under the regulatory initiatives framed by the government
- Tax challenges for the insurers
- Providing insurance in disaster prone areas is a big risk to insurers
- Sometimes insurers approach reinsurers to share profits and risk
There are various challenges and benefits to insurers. Insurance in disaster prone areas are generally reinsured because there is a very high probability that the is consumer is going to claim the money. Increasing awareness among the semi urban and rural areas about insurance is adding to the growth to the insurance premiums.
The Malaysia life insurance industry has reported to register a growth of 20.8% in new business weighted premium during first half of 2016. According to the Life Insurance Association of Malaysia (LIAM), the new business weighted premiums recorded to RM2.44 billion in the first half as compared to RM2.02 billion during the same period previous year. The life insurance industry is witnessing shifts and major developments led by its products and services for the rakyat as outlined under the Life Insurance and Family Takaful Framework (LIFE Framework) which came into force on Nov 23, 2015. , according to Ken Research.
To know more on Malaysia Insurance Sector, click on the link below: