Malaysia’s insurance industry set for growth in 2024

Malaysia’s insurance industry is poised for continued growth in 2024, driven by robust domestic demand, according to Affin Hwang Investment Bank Research. The general insurance segment is forecast to grow 10% in 2023 and 7% in 2024-2025, while life insurance is expected to see a 4% growth in 2023-2024 and 3.5% in 2025. Despite challenges like competition and high claims ratios, opportunities exist in effective risk pricing and reducing fraudulent motor claims. Allianz Malaysia Bhd is highlighted as a top pick due to its distribution network and dividend yields. TA Research supports an “overweight” stance on the insurance sector, with Allianz and Tune Protect Group Bhd as preferred choices, noting their attractive valuations and dividend yields. Growth is anticipated in both general and life insurance segments.