Growth prospects of the insurance sector in 2014

According to Ernst & Young, the Malaysian insurance industry will depend heavily on the performance of the financial markets. The expected stability along with the steady level of interest rate is likely to generate growth for the insurance industry.

Several other factors such as the increase in demand induced by the good purchasing power, corporate risk management policies, insurers’ investment in multiple distribution channels and the governmental plan to raise public insurance rate from 54% today to 75% in 2020 are only clear signs confirming that trend.