Industry outlook by LIAM

LIAM expects new business to grow at 17% and 12.5% for year 2009 and 2010 respectively. 2010 should see introduction of micro insurance and annuity products to take advantage of tax relieves announced in the Budget.

With the completion of FSMP in 2010, further liberalisation would be seen in areas such as:

• allowing insurers to distribute other personal financial service products
• removal of caps on operating expenses
• granting of new licences for innovative players

The liberalisation measures announced in 2009 are expected to result in:

• more bancassurance partnership
• opening of more branches
• higher foreign equity holding
• application of the 2 new takaful licences

Source: Business Times 1 & 2

LIfe after FSMP

What is next after Financial Sector Master Plan (FSMP)? Here are some clues:

• A new blueprint for significant expansion of the financial system
• More emphasis on the development of a vibrant regional financial market that can support the expansion in trade and investment activities within the region

Source: The Star