For the first half of 2022, the general insurance sector reported a rise in gross direct premiums of 10.3% to MYR9.8 billion ($2.1 billion), compared to the same time in 2021.
However, losses in the motor and medical and health insurance lines of business caused the underwriting profit to decline by 21.2% to MYR810m.
With a 43% share of premium income, the Motor business segment continues to be the largest, followed by Fire (29%) and Miscellaneous (14%). A major factor in the PA premium's enormous +44% year-over-year growth was the Perlindungan Tenang Voucher program, a financial aid program intended for low-income people.
Phase 2 of the motor and fire tariff liberalization program (from 1 October 2022)
The general insurance sector says it supports Bank Negara Malaysia's commitment to an orderly and gradual transition to market-based pricing, greater product innovation, and higher quality services for the benefit of consumers, and it welcomes the second stage of the phased liberalization of motor and fire tariffs announced by the bank (effective from 1st October this year).
Further liberalization is intended to enable insurance companies to develop changes that have the potential to favorably transform the ecosystem of motor claims for many years to come, as laid forth in the Bank's Financial Sector Blueprint 2022–2026.
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