Insurance

Malaysia’s insurance sector, which saw premiums rise by nearly 15% in 2011, is growing in tandem with the country’s economic development. The sector saw a wave of mergers and acquisitions for conventional insurers in recent years as regulators imposed a risk-based capital (RBC) framework. Now, with the application of RBC to takaful firms, the Islamic insurance sector is expected to consolidate as well. Other regulatory changes – the rising cap on motor insurance tariffs, potential liberalisation in the health sector – could boost the sector as well. Overall, Malaysia’s middle-income status and relatively low levels of penetration bode well for insurance growth in the medium to long term. This chapter includes an interview with Hans de Cuyper, Etiqa Insurance & Takaful.