Page 17 - Insurance Times December 2021

International

News

Slowdown in motor insur- lockdown restrictions resulted in lower Insurance by Tokio Marine will further
claims for general insurers in 2020. This consolidate the market in 2021. The
ance to drag down Malay- had a positive impact on their profit- combined entity to be formed by the
sian general insurers ability as loss ratio for motor insurance acquisition of AmGeneral by Liberty
growth in 2021 decreased from 71.5% in 2019 to Mutual is expected to be the second
63.8% in 2020. However, continued leading general insurer in 2021. Simi-
Malaysian general insurers’ growth is lockdown restrictions due to the resur- larly, Tokio Marine will become the
expected to slow down in 2021 due to gence of the pandemic and global au- fourth largest insurer after acquiring
decline in vehicle sales and motor in- tomobile chip shortage are expected RHB Insurance.
surance due to halt in production to impact vehicle sales, which will re-
driven by global automobile chip short- sult in slowdown in the growth of gen- Mr. Sahoo concludes: “Pandemic driven
age, says GlobalData, a leading data eral insurers business in 2021.” weak consumer demand and slower
and analytics company. economic recovery will continue to cre-
According to the Malaysian Automo- ate a challenging environment for gen-
Motor insurance was the leading seg- eral insurers in Malaysia in 2021.”
ment in the Malaysian general insur- tive Association (MAA), the sales of
ance industry, accounting for 48.7% new vehicles declined by 7.3% during
January-September 2021 as compared Chile’s general insurance
share of the direct written premiums
to the previous year. This is expected
(DWP) in 2020, followed by property industry to reach CLP4.6
insurance with 25.6% share. to improve in the last quarter with trillion in 2025
companies gradually resuming their
Swarup Kumar Sahoo, Senior Insurance operations and ramping up vehicle pro- The Chilean general insurance industry
Analyst at GlobalData, comments: duction. is projected to grow from CLP3.2 tril-
“With major share in business coming lion (US$4 billion) in 2020 to CLP4.6
from motor insurance, the vulnerabil- Mr. Sahoo adds: “The declining growth trillion (US$5.8 billion) in 2025, in terms
ity of leading general insurers has in- has prompted insurers to look for inor- of gross written premiums, according
creased due to the lockdown restric- ganic growth which has increased to GlobalData. The leading data and
tions during the COVID-19 pandemic.” M&A activity in the general insurance analytics company notes that Chile’s
segment.”
Among the top 10 general insurers, general insurance industry is expected
motor insurance accounted for 81.4% Malaysia’s general insurance segment to grow at a compound annual growth
of the total business of AmGeneral, is concentrated with top 10 insurers rate (CAGR) of 7.6% over 2020-2025,
followed by Zurich and Allianz General accounting for 73.3% share in 2020. supported by a faster economic recov-
with 72.3% and 67.6%share, respec- Allianz General was the market leader ery in the country post-pandemic.
tively. On an average, the top 10 gen- with 13.4% share in 2020, followed by Anjuli Srivastav, Insurance Analyst at
eral insurers generated 51% of their AmGeneral and Lonpac. GlobalData, comments: “The general
business from motor insurance in 2020.
The proposed acquisitions of insurance industry in Chile grew by 7%
Mr Sahoo explains: “The nationwide AmGeneral by Liberty Mutual and RHB in 2020, driven by the growth of major

The Insurance Times, December 2021 17