Being a part of the 1997 WTO Financial Services Agreement,
Malaysia committed itself for allowing
existing foreign shareholders of locally
incorporated insurance companies to increase their shareholding to 51%. New
entry by foreign insurance companies is limited to equity participation in
locally incorporated insurance companies.
The insurance industry of Malaysia registered a second
consecutive year of double-digit growth in 2004, supported by robust growth in
the life sector. During the year 2004, combined premium income for life and
general business increased at a stronger pace of 17.2% (2003: 11.6%) to achieve
RM22,038.9 million (2003: RM18,812.3 million). The fundamentals underlying
profitability were also stronger, with more disciplined underwriting supporting
positive results in the general sector, while further improvements in
asset-liability matching were observed in the life sector. Efficiency gains
also contributed to improved results.
|
The insurance market continued to expand in reaching an increasingly important
role in supporting economic and social development. Both insurance penetration
and density levels have further enhanced. Combined premium income as a
percentage of nominal Gross National Product increased to 5.2% (2003: 5.1%),
while the market penetration rate was also higher at 37.9% (2003: 36.8%),
underscoring its growing importance within the economy in promoting economic
activity and individual financial well-being. Total assets of insurance funds
expanded by 13.1% to RM86,848.5 million in 2004 (2003: RM76,807 million) mainly
contributed by the growth of the life fund assets
For the second
quarter of the year 2005,the finance, insurance, real estate and business
services have grown by 4.7% percent.
|