Best’s Market Segment Report: AM Best Maintains Stable Outlook On Malaysia’s Non-Life Insurance Segment

SINGAPORE, Sept 10 (Bernama) -- AM Best is maintaining a stable outlook on Malaysia’s non-life insurance segment, citing regulatory initiatives and economic expansion, which is driving robust premium growth and increasing insurance penetration.

Also supporting the stable outlook on Malaysia’s non-life segment is de-tariffication of motor and fire insurance, as well as measures curbing medical inflation. The Best’s Market Segment Report, “Market Segment Outlook: Malaysia Non-Life Insurance,” notes that motor and fire insurance anchor the market, together accounting for more than 65% of total non-life premiums. Since phased liberalisation of tariffs for these lines began in July 2016, pricing progressively has shifted toward a more risk-based approach. Over time, AM Best expects de-tariffication to drive product innovation, improve service quality, align pricing with underlying risks and enhance market efficiency, although it may pressure underwriting margins over the intermediate term.