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German general insurance laysia is projected to grow at a com- Property insurance, which was the sec-
pound annual growth rate (CAGR) of ond-largest general insurance line with
industry to reach $229.6 4.8% from MYR17.67bn ($4.26bn) in a 25.4% share, grew by 12.4% in 2021,
billion in 2026 supported 2021 to MYR22.31bn ($5.45bn) in driven by increased construction activ-
2026, in terms of direct written premi- ity. According to the Malaysian Minis-
by strong fiscal measures
ums (DWP), forecasts GlobalData, a try of Finance, the construction sector
Germany’s general insurance industry leading data, and analytics company. is expected to grow by 11.5% in 2022,
is expected to grow at a compound an- driven by the strong pipeline of infra-
nual growth rate (CAGR) of 6.8%, from As per GlobalData, the growth in the structure, residential, and utility
$165.4 billion in 2021 to $229.6 billion Malaysian general insurance industry projects. As a result, property insur-
in 2026 in terms of direct written pre- will be supported by the increase in ance is expected to grow at a CAGR of
mium (DWP), according to GlobalData, automobile sales as well as strong per- 7.9% during 2021-26.
formance in property insurance driven
a leading data and analytics company. Personal accident and health (PA&H)
by the expansion of construction activi-
Ashish Raj, Insurance Analyst at ties in the country. insurance was the third-largest line,
GlobalData, comments: “After con- accounting for 11.1% of general insur-
Rakesh Raj, Senor Insurance Analyst at
tracting by 2.1% in 2020 due to the ance DWP in 2021. The Malaysian
pandemic, the German economy is ex- GlobalData, comments: “The Malay- healthcare system is predominantly
pected to grow by 2.8% in 2022. The sian general insurance industry regis- based on public health insurance
economic recovery is driven by strong tered a growth of 2.4% in 2021 after where private health insurance is
declining in 2019 and 2020. The
government fiscal measures that in- mostly sold as an add-on service.
growth in the industry is predomi-
clude increased healthcare spending, Raj continues: “However, with rising
nantly driven by the economic recov-
short-term subsidies to preserve jobs, ery, which after declining by 5.6% in medical costs, increased health aware-
grants for small businesses and self- 2020, is expected to grow by 5.5% in ness, and a gap in public healthcare cov-
employed persons, and temporary VAT 2022.” erage, the popularity of private insurance
reduction.” is increasing among the citizens. PA&H
Motor insurance was the largest gen-
The economic recovery is expected to insurance is expected to grow at a CAGR
eral insurance line, accounting for
support general insurance industry of 4.5% during 2021-26.”
46.5% of the total DWP in 2021. After
growth, which is expected to grow by Marine, aviation and transit (MAT),
declining by 2.0% in 2021 due to
4.7% in 2022. COVID-19 lockdown restrictions and Liability, and Miscellaneous insurance
global automobile chip shortage, the accounted for the remaining 16.9%
General insurance indus- motor insurance segment is expected share in 2021.
try in Malaysia to reach to grow by 1.9% in 2022, driven by an Raj concludes: “Malaysia’s general in-
increase in vehicle sales. Motor insur- surance penetration, as a percentage
$5.5bn in 2026 ance is expected to grow at a CAGR of of GDP, in 2021 was 1.2%, which is
The general insurance industry in Ma- 3.0% during 2021-26. slightly higher than the Asia-Pacific
The Insurance Times, May 2022 17