Malaysia Insurance Report Q2 2010 |  | Author: Business Monitor International
Publisher: MarketResearch.com
Category: Book
Buy New: $530.00
as of 9/9/2010 00:05 CDT details
Seller: Amazon.com
Format: Download: PDF
Media: Digital
Pages: 115
ASIN: B003GZ3IEG
Publication Date: March 25, 2010
Availability: Available for download now
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| Editorial Reviews:
Product Description
A major change in relation to our last quarterly report is that we have reviewed all data that is publicly available at the beginning of 2010 in order to ensure that our forecasts for 2009 and this year are reasonable. We have been able to include actual data for 2008 across all countries that we survey in the Asia-Pacific region.
This quarter, we include a regional review that looks at the actual and forecast growth rates for premiums - across both major segments. A key insight is that growth in China’s life segment has slowed markedly over the last year or so. Nevertheless, the impact of the global financial crisis was much greater in South Korea, Australia, Singapore and Hong Kong. For the time being, we continue to expect that the most rapid growth will take place in countries such as Vietnam and the Philippines - where organised savings are at an embryonic state of development. For non-life insurers, the key insight is that price competition has caused penetration (ie premiums as a percentage of GDP) to fall in many countries: indeed, there has been a fall in absolute premiums in some instances.
As was the case in Q109, we provide a ranking of the major players in each of the two main segments - as they are seen by the organisation providing the data (which, in practice, is usually the regulator or the trade association). In Malaysia, for instance, the three largest non-life companies in the first half of 2008 - in terms of gross written premiums written - were Kurnia, Mitsui and Etiqa, with respective market shares of 12%, 7% and 7%. Great Eastern continues to dominate the life segment, with a market share of 24%. Prudential and ING each had market shares of around 14%. Over time, we hope to derive insights from observing how market shares change. We emphasise though, that a decline in share of gross written premiums is not automatically a bad thing and is often the result of a deliberate corporate decision to focus on more profitable business lines.
In this report, we provide a breakdown of the insurance sector by line - from the point of view of the regulator or the trade association. In Malaysia, for instance, the largest non-life lines in calendar 2008 were Land Vehicles Voluntary Insurance (CASCO), Medical Exp & Personal Accident, and Marine, Aviation and Transport. These accounted for 39%, 13% and 11% respectively, of total non-life premiums. Over time, we should be able to use this information to bring greater sophistication to our forecasting process.
We are looking for total premiums in 2009 of MYR35,060mn. This includes non-life premiums of MYR10,993mn and life premiums of MYR24,067mn. In 2014, the corresponding figures should be MYR76,171mn, MYR22,199mn and MYR53,973mn. In terms of the key drivers that underpin our forecasts, we are looking for non-life penetration to change from 1.58% in 2009 to 2.11% in 2014, and for life density to rise from US$253 to US$524. BMI’s proprietary Insurance Business Environment Rating for Malaysia is 63.5 out of 100.
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