Shortage in skilled labor is prejudicial to insurance

Despite the great potential for development, the Malaysian market is running out of steam. The growth of the life class of business has considerably slowed down for the recent three years. In non life insurance, the increase in the capacity of major risks or special risks seems to have reached the limit.

Part of the problem is accounted for by the deficit in skilled labor. The lack of experienced underwriters is at the origin of the recourse to the placement of some of the risks with foreign reinsurers, especially in energy, marine and aviation. Nearly 1.2 billion USD in premiums have left the country during the last five years. The retention of these classes of business remains below 30% over the recent ten years.

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