Impact on Malaysia Insurance Industry

How is the local insurance industry affected if the financial crisis that has hit the US and Europe worsens? The Star reported the following views from the industry players:

Unnamed insurer: “If the credit crunch persists, it may affect the performance of insurance companies as it will have an impact on the local economy, hence affecting spending.”

Allianz Malaysia Bhd: Minimal impact on the company as has minimal exposure in foreign investments, difficult to predict the outcome should the credit crisis persist.

Manulife: Growth might be slow but sales would continue to grow.

Hong Leong Assurance: Business expected to grow as economic downturns create a need for insurance protection. Investments are maily in the local markets, no exposure to CDOs and exotic instruments. Exposure to stock market kept to a minimum and in sound dividend-yielding stocks.