In spite of sluggish growth in the overall economy, BMI expects motor vehicle insurance in Malaysia to grow 7.9% in 2017
Increasing volumes are the main driver of the expected growth in motor vehicle insurance premiums in Malaysia in 2017. BMI expects the total number of vehicles in Malaysia to grow by 5.7% and for the price of an insurance policy to increase as well, although more modestly due to intensifying competition in the sector.
A similarly high rate of growth is expected in another segment of non-life insurance in Malaysia. Personal accident and health insurance product lines are expected to grow by 10% in 2017, up to MYR 2,877mn (USD 651mn) in premium income, largely due to sales to first-time users.
Driven by growth in international trade and further integration with neighbouring countries in ASEAN, BMI expects transport insurance to post around 6.2% growth in 2017, reaching MYR 1,868mn (USD 423mn) premium income. The other segments of the non-life insurance sector in Malaysia are to grow in a more conservative pace.
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