BNM's Annual Report 2009

Some of the salient points from BNM's Annual Report 2009 related to insurance and takaful industry:

• The finance and insurance sub-sector recorded a growth of 7.7% against 11.1% in 2007 to account for 11% of GDP at end 2008
• Solvency position of the insurance and takaful industry was sustained during 2008
• Total income for life insurance sector fell to RM26.779 bil in 2008 from RM28.440 bil in 2007, while its outgo increased to RM19.238 bil from RM14.617 bil
• General insurance sector's operating profit fell to RM588.9 mil in 2008 from RM1.339 bil in 2007
• Family takaful income rose to RM2.834 bil from RM2.376 bil, while outgo rose from RM1.294 bil to RM1.441 bil
• The general takaful operating profit rose to RM171.6 mil from RM24.5 mil
• Insurance and takaful sectors will be affected by lower demand and higher competition
• Motor insurance and takaful to be affected by expected decline in vehicle sales
• Potential higher surrender rates
• Potential lower sum assured (smaller policies)
• Potential higher incidences of theft and fraud

Source: The Star 1, 2 & 3, Bernama