Low underwriting of flood risk insurance in Malaysia

Malaysian Re reported that the floods that hit Malaysia from 16 to 21 December to 2021 resulted in economic losses ranging between 5.3 and 6.5 billion MYR (1.2 and 1.4 billion USD).

Local insurers have settled 20% to 30% of that amount; that is 1.5 to 2 billion MYR (342.08 and 456.1 million USD) of total damage costs.

Malaysian Re is calling on insurers, regulators and the government to find a solution to better cover this type of risk and thus increase the penetration rate of flood insurance nationwide.

Note that the December 2021 floods led to 14 deaths while over 71.000 people had to be evacuated.