Page 17 - Insurance Times May 2022
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International


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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

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